Sanguine Corp. Releases Letter to Shareholders.

Business Editors &Health/Medical Writers

PASADENA, Calif.--(BUSINESS WIRE)--Feb. 8, 2000

The recent efforts relating to raising funds necessary to enter the PHER-O2 molecule into animal trials as a second-generation blood substitute has revealed several new and interesting potential uses for the Sanguine developed product.

Due to the substantial nature associated with the usage of the PHER-O2 molecule in both biomedical and non-biomedical applications, the Sanguine board of directors has entered into negotiations relating to an executive and medical board restructuring.

The restructure will enable Sanguine to concentrate on the animal trials, while in parallel, explore new patent applications which could result in royalty revenues prior to the completion of the animal trials.

Sanguine Corp. (OTC BB:SGNC) is developing an artificial blood, as its core product, that can be administered at room temperature with a shelf life of three years. The use of the Sanguine perfluorocarbon product as a blood substitute eliminates the need for type and cross matching, and the fear of contamination from AIDS or Hepatitis viruses.

In addition, the Sanguine molecule is 1/900th the size of a human red blood corpuscle (rbc's) and can, despite its size, deliver three to four times the amount of oxygen, as well as remove CO2 in a similar fashion to human red blood cells.

Its small size as compared to rbc's permits PHER-O2 to readily bypass vascular obstruction to deliver oxygen to occluded vessels to restore or maintain tissue viability, which is not possible with normal blood substitution. PHER-O2 provides advantages for the treatment of shock, ischaemia (stroke, peripheral vascular or coronary disease).

Its ready availability and long shelf life provide an ideal blood substitute that can be stored for use, where type and cross matching is not possible and where disasters: battle causalities, earthquakes, explosions, automobile accidents, drowning and carbon monoxide poisoning, require immediate oxygenated blood replacement.

Sanguine's proprietary product is being further evaluated due to its inherent oxygen delivery capacity providing a safe, non-toxic oxygen source that can be used to inhibit anaerobic infecting organisms such as are present in salmonella and toxic coliform bacteria.

Furthermore, the PHER-O2 molecule is considered to have topical value in cosmetics desiring to decrease odor, acne, athlete's foot and monilial infection.

Sincerely, Thomas C. Drees, MBA, Ph.D. Chairman and CEO 

Notice: This news release contains, and oral statements made from time to time by company representatives concerning the information contained herein may contain so-called &uot;forward-looking statements.&uot;

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Forward-looking statements frequently are used in discussing the company's growth strategy, operating and financial goals, regulatory submissions and approvals, and development programs.

Many factors may cause actual results to differ from the company's forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements.