Biophan Announces Online Availability of Annual Report Detailing Corporate Milestones, Growth, and Licensing Strategy; Report for Year Ended February 28, 2005, Now Available on Company Website.

ROCHESTER, N.Y. -- Biophan Technologies, Inc. (OTCBB: BIPH), a developer of next-generation biomedical technology, has posted its 2005 Annual Report on the Biophan website, making available the details of its key technological achievements and business activities for the year ended February 28, 2005.

The report provides a comprehensive picture of the fiscal year's accomplishments as Biophan continues to execute its strategy to deliver proprietary technologies that improve life-saving and life-enhancing medical devices. The report includes a color wrap-around overview of the Company and its technologies. A printed copy of the Annual Report has been mailed to all shareholders of record.

"This year has been more exciting and eventful for Biophan than any previous year," wrote CEO Michael Weiner and Chairman of the Board Guenter H. Jaensch, in the report's Letter to Shareholders. "We are in a period of significant growth, and we will continue to forge ahead with plans for continued progress this year, and in the years to come."

"We have expanded the base of technologies we are developing, to reach even broader markets with the potential for significant future revenue streams for Biophan," Mr. Weiner and Dr. Jaensch added.

These new technologies include Biophan's initiatives within its Nanolution division to develop technologies for improved, "active drug delivery" using novel nanomaterials, allowing Biophan to participate in the $40 billion drug delivery market.

Among the annual report's highlights is the dramatic growth of the Company's intellectual property portfolio during the year ended in February of 2005. "We have greatly broadened our technology base, more than doubling the number of US patents in our patent portfolio from 60 to 127 in the last year, and we now have 46 issued and pending international patents. The number of issued US patents has increased from 9 to 36. We expect these numbers to continue to grow," Mr. Weiner and Dr. Jaensch wrote.

In the months after the period covered by the report, the Company has indeed continued to expand its intellectual property portfolio, and holds a total of 140 U.S. patents, licenses, or applications, of which 38 have issued, and 9 additional have been allowed (meaning they will soon issue).

The report further describes Biophan's progress in its strategy to generate significant revenues through licensing of its patents and intellectual property. It describes collaborative agreements with complementary companies and strategic partners, including the joint development agreement with Boston Scientific, one of the major medical device manufacturers. That agreement led to Biophan's recently executed licensing and investment agreements with Boston Scientific. Under the agreements, Boston Scientific has licensed a number of Biophan's next-generation proprietary biomedical technologies, for a $750,000 advance license fee, plus milestone payments, annual minimums, and royalties with the potential for significant multi-million dollar revenues. In addition, Boston Scientific is scheduled to make a $5 million equity investment in Biophan by August 15, 2005.

Biophan is committed to solving critical safety and image compatibility problems many medical devices suffer from when in Magnetic Resonance Imaging (MRI) environments. These include undesirable heating of implanted medical devices or surgical tools, as well as potentially fatal induced voltages in devices such as pacemakers, defibrillators, and neuro-stimulators. Biophan has created a broad "patent thicket" covering these solutions, to safeguard its competitive lead and anticipated revenue streams.

Research and development progress noted in the Annual Report include the following achievements and milestones.

--Demonstration of technology allowing the visualization of restenosis within stents using MRI and non-invasive means, covered by Biophan's intellectual property.

--Acquisition of an MRI-visible vena cava filter, designed to trap circulating blood clots, plaque, or other materials that can cause lung embolisms; and enabling visualizing the device before extracting the device, avoiding potential lethal release of the trapped materials.

--Licensing of exclusive medical rights to a line of unique MRI-safe and image-compatible non-magnetic Squiggle(TM) motors;

--Formation of the Nanolution drug delivery division to develop unique nanotechnology-based drug-elution and drug delivery systems; including "active drug delivery," on demand, using non-invasive energy activating materials with no electrical components.

--Progress in development of a biothermal power source that generates electricity from body heat to run implantable medical devices; being co-developed with NASA's Ames Center for Nanotechnology, in Moffet Field, California.

Leveraging strategic relationships is also vital to Biophan's mission, to create new sales channels and joint development projects. Progress noted in this area include:

--Signing of a Term Sheet with medical device manufacturer Boston Scientific, further validating Biophan's innovative technologies; (which subsequently converted to documents executed on June 30, 2005).

--Acquisition of a 51% interest in the firm, TE Bio LLC, developer of the implantable biothermal power source;

--Completion of the acquisition of a majority interest in aMRIs GmbH, a leading technology company, based in Germany, with important MRI visualization technology and a renowned medical industry staff. The acquisition brought 15 additional issued and pending patents; aMRIs was renamed Biophan Europe and is expanding operations and affiliations with other leaders in the medical device arena.

--Establishment of a joint development agreement with the NASA Ames Research Center for building prototypes of the biothermal power source.

To view the report, visit http://www.biophan.com, and select the "Investor Information" option on the home page. Then select "2005 Annual Report" from the choices on the left hand side of the page.

About Biophan Technologies

Biophan develops and markets cutting-edge technologies designed to make biomedical devices safe and image compatible with the magnetic resonance imaging (MRI) environment. The Company develops enabling technologies for implanted medical systems such as pacemakers and interventional surgical devices such as catheters, guidewires, stents, and other implants to allow them to be safely and effectively imaged under MRI. The technology is also being used to create MRI contrast agents, and has expanded to include other applications, such as drug delivery and power systems derived from body heat. Four Biophan technologies include advances in nanotechnology and thin film coatings. Committed to growth through innovation and developmental leadership, Biophan and its licensors now hold a total of 140 U.S. patents, licenses, or applications. This total includes 38 issued U.S. patents, 9 recently-allowed applications that will issue as patents in the near future, and 93 pending applications at various stages of examination at the U.S. Patent and Trademark Office, plus international applications. The patents cover areas including nanotechnology (nanomagnetic particle coatings), radio frequency filters, polymer composites, thermoelectric materials for batteries generating power from body heat, and photonics. Biophan has joint development and licensing agreements with Boston Scientific (NYSE: BSX - News) and NASA's Ames Center for Nanotechnology. Biophan's goal is to make all biomedical devices capable of safely and successfully working with MRI, and delivering other technologies which will improve quality of life. For more information, please visit www.biophan.com.

Cautionary Statement Regarding Forward-Looking Statements 

Certain statements included in this press release may constitute forward-looking statements within the meaning of applicable securities laws. These statements reflect what Biophan anticipates, expects, or believes may happen in the future. Biophan's actual results could differ materially from the outcome or circumstance expressed or implied by such forward-looking statements as a result of a variety of factors including, but not limited to: Biophan's ability to develop its technologies; the approval of Biophan's patent applications; the successful implementation of Biophan's research and development programs; the ability of Biophan to demonstrate the effectiveness of its technology; the acceptance by the market of Biophan's technology and products incorporating such technology, the ability of Biophan to effectively negotiate and enter into contracts with medical device manufacturers for the licensing of Biophan's technology; competition; the ability of Biophan to raise capital to fund its operating and research and development activities until it generates revenues sufficient to do so; and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in Biophan's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with Biophan's periodic filings with the SEC which are incorporated herein by reference. The forward-looking statements contained herein are made only as of the date of this press release, and Biophan undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.