Biophan Technologies Announces 2005 Strategic Initiatives.

ROCHESTER, N.Y. -- Company Outlines Key Milestones in Expansion of Intellectual Property, Strategic Business Acquisitions, Partnerships

Biophan Technologies, Inc. (OTC BB: BIPH), a developer of next-generation biomedical technology, today announced its Strategic Initiatives for 2005. The announcement, by CEO Michael Weiner, outlines the past year's key milestones and describes the Company's strategic directions for 2005 and beyond.

"In the past year we have successfully put into place several key business and technological elements that will enable us to continue to make significant progress in delivery of our advanced solutions to the biomedical marketplace," said Mr. Weiner. "These important achievements--including the establishment of our new Nanolution division, acquisition of a majority interest in TE-Bio, the relationship with NASA, the expansion of our scientific advisory board, and the near-doubling of the size of our intellectual property portfolio--further strengthen our industry-leading position in the creation of next-generation products for crucial medical applications."

Among Biophan's key milestones and achievements during 2004:

--Expansion of its intellectual property portfolio to a total of 92 patents issued, pending or licensed--nearly doubling the size of its intellectual property portfolio, and further cementing Biophan's leading role in several key areas of biomedical technology.

--Recruiting John Lanzafame to head up our drug delivery technology initiative, and renaming the subsidiary "Nanolution," which applies Biophan's intellectual property in nanotechnology toward development of new products for the projected $40 billion market in advanced drug-delivery and drug-elution devices. Mr. Lanzafame formerly headed up a company acquired by Angiotech (ANPI).

--An exclusive, worldwide distribution agreement with New Scale Technologies, Inc., for distribution of the highly precise, reliable and MRI-safe ceramic SQUIGGLE(TM) motor to the multi-billion-dollar drug delivery market.

--Newly filed patents relating to Biophan's "anti-antenna" geometries for stent designs, guidewires, catheters, and many other devices, resolving the issues of heating and induced voltages in leads such as those used in pacemakers, defibrillators and neurostimulators. The patents also enable the manufacture of stents that do not interfere with MRI imaging of the stent interior--a process critical to diagnosis of the healing process and detection of new blockage due to plaque or tissue accumulation.

--Acquired a majority interest in TE-Bio, holder of the patent for nanotechnology-enabled biothermal batteries that use body heat to generate electricity for implanted medical devices, such as pacemakers, defibrillators and neurostimulators.

--Joint research and development agreement with National Aeronautic and Space Administration (NASA), for thermoelectric battery technology.

--Biophan was named one of the top 50 public companies in the Rochester, N.Y. area by the Rochester Business Journal. The publication cited Biophan's strong commitment to research and development, and ranked its R&D budget eighth-largest in the technology-strong Rochester region.

Strategic Initiative 1 - Patents received and Acquisition of Intellectual Assets:

Biophan will maintain its leadership position in the marketplace through continued aggressive development and acquisition of patents and other intellectual property. As of this writing, the Company has announced a total of 92 U.S. patents issued, owned, or licensed. This total includes 21 patents issued and 71 pending that will issue as patents in the near future and/or are at various stages of examination at the U.S. Patent and Trademark Office.

Among specific initiatives, the Company expects to take a leadership role in several areas where it holds unique technology advantages, including--but not limited to--nano-enabled biothermal battery technology and MRI-guided surgical procedures, such as minimally invasive procedures like those used for placing stents, performing RF ablation, angiograms, biopsy probes and many other procedures.

Biophan will continue its successful strategy of obtaining new technologies that complement and strengthen its nanotechnology and MRI-enhancing biomedical solutions, through a combination of internal development, licenses, joint ventures, and/or acquisitions. The Company is committed to maintaining the value of its intellectual assets and market opportunities, through pursuit of broadly applicable filings and the aggressive defense of its patents and licenses, both domestically and abroad.

Strategic Initiative 2 - Market Expansion:

Biophan's internal research and development, and its acquisition of complementary technologies and patents have enabled it to expand its product and technology initiatives to several cutting-edge areas of diagnostic and interventional medicine, and implantable devices that fall within its core competencies.

Among the market areas of opportunity we expect to develop further are drug-elution and drug-delivery products and technologies. Biophan's Nanolution division is leveraging its core competencies in nanoengineering, particularly its proprietary Nanoset nanomagnetic particle technology, as it develops next-generation drug delivery and drug-eluting devices. We are developing solutions that enable the creation of active drug-delivery products, providing a significant medical advantage over the passive drug-eluting technologies currently available. Using nanomagnetic particles that attach to drugs, we can cause them to be non-active until a specific electromagnetic field is applied, releasing the nanoparticle and making the drug active; in other applications, releasing it so it can then elute into the bloodstream. The drug-delivery market is estimated to grow to $40 billion.

Biophan and partner Nanoset are also adapting the nanomagnetic particle technology to uniquely advantaged contrast agents for MRI. Approximately one in four MRI procedures involves the use of one or more contrast agent dosages, taken orally or intravenously. Our nanomagnetic particles are brighter and longer lasting than those using gadolinium. The market for these contrast agents is over $800 million, and growing. We are in discussions with manufacturers of contrast agents regarding adopting our materials as an alternative to gadolinium.

Biophan is also helping to create a new field of MRI-guided surgical procedures, a marked improvement over other imaging techniques used to guide surgical procedures. Through application of newly-issued patents in the area of our "anti-antenna" design solutions, Biophan intends to enable the creation of medical device leads, catheters, and guidewires that can be used safely in MRI-guided surgery. Our anti-antenna designs prevent adverse heating of those devices caused by the MRI radio-frequency fields. In concert with other Biophan technologies, we can solve the problems of safety and image compatibility that have impeded the development of MRI interventional medicine, enabling procedures that are safer and more effective.

Biophan will continue to maintain a leadership position in the developing technologies that make implanted medical devices, such as heart pacemakers, safe for use with MRI and other diagnostic imaging tools. Biophan has also developed technologies that allow for the use of interventional MRI, without the heating problems that can cause tissue damage or imaging problems that obscure the outcome of the procedures. Our biothermal battery technology, acquired in 2004 with our TE-Bio subsidiary, can replace traditional chemical-based biomedical batteries, and use nanotechnology solutions to enable the generation of electricity from body heat. The batteries can be MRI-safe and last up to 10 times longer than traditional batteries.

Strategic Initiative 3 - Strategic Partnerships:

Biophan's TE-Bio thermoelectric battery subsidiary has entered into a pact with the National Aeronautic and Space Administration (NASA) for characterization and joint development of high-density, nanoengineered thermoelectric materials for use with implantable medical devices. Research will be conducted at the NASA Ames Research Center for Nanotechnology in Moffett Field, CA. The Nanotechnology Center at NASA Ames will provide access to expertise in a collaborative arrangement for the benefit of both parties. The agreement combines NASA's expertise with thermoelectric materials and state-of-the-art nanotechnology development with Biophan's innovative power solution that has the potential to greatly improve patient quality of life and lower healthcare costs.

We believe this year's agreement with NASA will continue the successful results of our joint development with Boston Scientific, announced in 2003. Leveraging cooperative development relationships such as these is vital to Biophan's mission, assisting us in several critical areas, such as sales channels, technology, and by generating higher visibility for our Company in the market and the investor communities.

The joint development relationship with Boston Scientific continues to move forward with good progress through phases two and three of a specific project. The project is going well and has expanded to involve other products. The specific projects underway are confidential, but all involve either MRI image compatibility or MRI safety, or a combination of the two.

Biophan has stated that it is in negotiations with one or more strategic partners for relationships that may involve license fees, milestone payments, product royalties, and equity investment. These negotiations have been complex because our technology reaches across many products, both in the MRI arena and other areas such as drug delivery, and involve potential exclusive arrangements for specific product lines, but we continue to make good progress towards closure. Additionally, we are rapidly developing additional proof of efficacy for our capabilities, which has had a positive impact on discussions with strategic partners.

Strategic Initiative 4 - Recruitment of Key Personnel:

Among new key personnel are:

John Lanzafame: In 2004, Biophan welcomed John Lanzafame, a 15-year veteran of the drug-elution industry, as President of the Company's Nanolution division. Mr. Lanzafame's previous positions include president of STS Biopolymers Inc., a firm specializing in drug elution from medical device surfaces, as well as other key posts within the drug-delivery industry. Mr. Lanzafame has extensive background in field, including the development of high-performance drug-elution coatings and technology for the medical devices marketplace. Mr. Lanzafame formerly headed up a company acquired by Angiotech (ANPI).

Dr. Frank Shellock: Also this year, the Company was delighted that Dr. Frank Shellock, a world-renowned authority on MRI Safety, agreed to join the Biophan's Scientific Advisory Board. Dr. Shellock, who has for five years been a valued consultant to Biophan, will continue to provide the Company with important medical, scientific and market advice in the various areas of MRI-safety. As Biophan prepares to start deploying products in the marketplace, however, Dr. Shellock's advice, drawn from more than 20 years of research experience, including 18 in MRI, will be particularly helpful.

Dr. David Glocker: Another new addition to Biophan's Scientific Advisory Board, Dr. Glocker brings a wealth of technology coatings experience. Dr. Glocker is President of Isoflux Incorporated, a manufacturer of magnetron equipment, which he founded in 1993. He has more than 20 years of experience in thin film research, development, and manufacturing and has taken a number of new processes from laboratory-scale feasibility studies through successful production. Dr. Glocker, an inventor or co-inventor of 25 U.S. patents, formerly headed a thin film R&D group for the Eastman Kodak Company.

As it has since its inception, Biophan's management team and Board of Directors are peopled with many of the world's leading experts in biomedical device development and manufacturing. Biophan's current recruitment initiative concentrates the Company's efforts on hiring experienced sales, marketing and operations personnel who can help the Company manage its expected growth.

Biophan anticipates continued growth of its talent pool as it gains momentum in the marketplace, both through consulting relationships and by the addition of new employees. The result is expected to augment not only our human capital and intellectual property, but also pave the way towards accelerated partnerships with key manufacturers, vendors and customers.

Summary

Biophan is continuing in its mission to build on its core competencies in nanotechnology and the enhancement of the safety and effectiveness of medical applications of MRI. From our strong base of technological expertise, we are expanding into related areas of the medical marketplace where significant business growth is projected. Biophan will be in a position to offer important products under broad patent protection.

We are very pleased with our recent successes and the numerous milestones we have achieved to date. In the year ahead, Biophan looks forward to substantial growth in revenues, earnings and, ultimately, in shareholder value.

More information on Biophan is available on its website: www.biophan.com.

About Biophan Technologies

Biophan develops and markets cutting-edge technologies designed to make biomedical devices safe and 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 and guidewires, as well as stents and other implants that can 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 product lines include advances in nanotechnology and thin film coatings. Committed to growth through innovation and developmental leadership, Biophan and its licensors have 21 issued U.S. patents and 71 patents pending, in 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 arrangements 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. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors including, but not limited to: the development of Biophan's MRI technologies; the approval of Biophan's patent applications; the successful implementation of Biophan's research and development programs; the acceptance by the market of Biophan's products; competition 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. 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.