Exhibit 99.1

                                              LOGO AND LETTERHEAD
                                              SANGUI BIOTECH INTERNATIONAL, INC.




SANGUI BIOTECH AND GERMAN PHARMACEUTICAL COMPANY PLAN JOINT DEVELOPMENT OF
HAEMOGLOBIN WOUND SPRAY.

Witten, June 21, 2004 - A renowned German medium sized pharmaceutical company
and SanguiBioTech GmbH of Witten, Germany, a wholly owned subsidiary of Sangui
BioTech International, Inc. (NASD OTCBB: SGBI), have declared their intention to
jointly develop a haemoglobin wound spray based on Sangui's artificial oxygen
carrier for the treatment of chronic wounds. The product has undergone a number
of initial clinical experiments which give rise to the expectation that the new
product may revolutionize the treatment of chronic wounds.

Under the proposed agreement, the pharmaceutical company will acquire the
pertinent know-how, rights and patents from Sangui. The partners plan to jointly
prepare and promote international regulatory clearance of the haemoglobin wound
spray as a pharmaceutical, which then will be internationally marketed by the
pharmaceutical company. Sangui will participate in future sales of the product
through royalties. Both companies expect to sign the contract after approval by
the Supervisory Boards in August, 2004.

For more information:
Joachim Fleing
Phone: +49 (160) 741 27 17
Fax: +49 (2302) 915 191
e-mail: fleing@sangui.de


This news release includes  statements,  other than historical fact, that may be
deemed  forward-looking.  These  statements  may be accompanied by words such as
"believe,"  "estimate,"  "project,"  "expect,"  "anticipate,"  or "predict" that
conveys the uncertainty of future events or outcomes. These statements are based
on assumptions that the Company believes are reasonable;  however,  many factors
could cause the Company's actual results in the future to differ materially from
the  forward-looking  statements  made herein and in any other documents or oral
presentations  made by, or on behalf of, the Company.  Important  factors  which
could cause actual results to differ  materially  from those in  forward-looking
statements  include,  among others, the ability to obtain additional  financing,
which is not assured; rapid technological  developments and changes; problems in
developments  of the  Company's  products;  price  and  product  competition  by
competitors; general economic conditions; and factors discussed in the Company's
SEC filings.  Shareholders are cautioned that the forward-looking statements are
not guarantees of future performance and that developments  different from those
projected in the  forward-looking  statements  can be expected.  Sangui does not
intend (and is not legally  obligated)  to update  publicly any  forward-looking
statements.