FOR IMMEDIATE RELEASE
Contact: Joseph Fischer, President and CEO, Lifeblood Medical, Inc.
1.866.389.3335

Lifeblood Medical, Inc. to Receive Department of Defense Funding

LIFEBLOOD MEDICAL, INC. TO RECEIVE DEPARTMENT OF DEFENSE FUNDING
Funding Confirms Technology Potential

FREEHOLD, N.J., Oct. 17, 2006—Lifeblood Medical, Inc. is
pleased to announce that it has received notice that medical research
funding in the amount of $1 million has been approved by the
Congressional House and Senate. The funding will accelerate the
development of the Company's proprietary solution in the fields of Human
Organ and Tissue Preservation.

"The Government's decision to support our proprietary product confirms
the potential of our technology," stated Joseph Fischer, President and
Chief Executive Officer of Lifeblood Medical, Inc. "Once officially
under contract with the U.S. Army, we will be closer to achieving our
mission of revolutionizing the transplant industry and having no organ
go unused. We look forward to collaborating with the U.S. Army on this
groundbreaking research project. Our shared vision is to discover new
and innovative applications that can save lives, reduce healthcare costs
and improve the quality of life of Servicemen and women, as well as, the
general public."

About Lifeblood Medical, Inc.

Lifeblood Medical, Inc., headquartered in Freehold, NJ, is a cell
culture/biotech company whose goal is to enhance and extend the quality
of life in the field of organ, cell and tissue preservation through the
utilization of our proprietary solutions and by providing key reagents
to the research community.

We distribute high quality serum and reagents to the research community
at competitive prices. Our products include Serum (including US and
Australia Fetal Bovine Serum), Serum Enhancers, Antibiotics and
Specialty Media.

Our proprietary solution is considered platform enabling technology,
with the potential to address a multitude of applications through all
segments of the tissue, cell and organ transplant markets by way of its
unique serum free, animal protein free and oxygen carrying properties.
For the cell and tissue preservation market we offer LiforCell®. For whole organ preservation, transportation and transplantation we offer LIFOR®. LIFOR® is currently undergoing
clinical trials for the support of heart and kidney harvesting,
transporting and reimplantation. FDA submission is anticipated later
this year. Additional information is available online at
http://www.lifebloodmedical.com.