EXHIBIT 21

SUBSIDIARY OF THE COMPANY

                            BIOMAGNETIC TECHNOLOGIES, INC.
                                 LIST OF SUBSIDIARIES
                                  SEPTEMBER 30, 1998




                                  Jurisdiction             Percentage of
                                    in which             Voting Securities
     Name                         Incorporated            Owned by Parent
                                                        

Biomagnetic Technologies GmbH (A)  Germany                     100%


     (A)  The subsidiary changed its name in October 1991.  It was formerly
          known as S.H.E. Kryotechnische Instrumente und Systeme GmbH.
          Substantially all assets and liabilities of the subsidiary  were
          transferred to Biomagnetic Technologies, Niedelassung, a branch of
          Biomagnetic Technologies, Inc. on October 1, 1997.