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AMDL Signs Letter of Intent to Purchase a China Based Pharmaceutical Distribution Company
Date:5/7/2008

TUSTIN, Calif., May 7 /PRNewswire-FirstCall/ -- AMDL, Inc. (Amex: ADL), headquartered in Tustin, California, with operations in Shenzhen, Jiangxi, and Jilin, China, is a vertically integrated specialty pharmaceutical company. In combination with its subsidiary Jade Pharmaceutical Inc. (JPI), the Company engages in the research, development, manufacture, and marketing of diagnostic, pharmaceutical, nutritional supplement, and cosmetic products.

AMDL today announced, that a Letter of Intent (LOI) has been signed between Guangzhou Lazon Pharmacy Co., Ltd. (GLP), a Hong Kong company that holds sole ownership of two China based pharmaceutical companies: Jiangxi Shangrao Kangda Pharmacy Co., Ltd. (JJB) and Yangbian Yiqiao Biochemistry Pharmacy Co., Ltd. (YYB) and JPI, the wholly owned subsidiary of AMDL. Based upon recent meetings in Shenzhen, China it is anticipated that JPI and GLP with work towards completing the acquisition of GLP by JPI and, as an interim step, GLP and JPI shall enter into a distribution agreement for JPI pharmaceutical products.

GLP was founded in 2002 and it is a Guangzhou based pharmaceutical distribution and sales company. GLP currently represents over 400 products from various manufacturers. GLP currently sells and distributes traditional Chinese medicines, health foods, medical equipment and generic pharmaceutical products. GLP had FY2007 gross sales of approximately 200 million RMB (US$28.55 million), with approximately a 10% net profit margin and an annual sales growth rate of approximately 20-30% per year. GLP currently has approximately 70 in-house sales agents. Geographically, 51% of the current sales are made to hospitals, clinics and pharmacies in Guangdong Province followed by 49% of the sales being made in Fijian, Hebei and Sichuan provinces.

As part of the Definitive Agreement it is anticipated that JPI, JJB and YYB would consolidate their sales forces under GLP. JPI, JJB and or YYB and GLP shall immediately begin working on one or more distribution agreements for the sales and distribution of JJB and or YYB's products by GLP. Subject to due diligence by JPI and other conditions and upon completing a Definitive Purchase Agreement, a closing of the transaction can take place wherein, 100 percent ownership in GLP will be transferred to JPI. Best efforts will be made by both JPI and GLP to complete the proposed transaction by August 1, 2008.

The Parties will agree amongst other things to hire and split the costs (50/50) a mutually agreed to valuation company to perform a valuation analysis to determine the value of GLP. Based upon that analysis and respectful negotiations between JPI and GLP, an acquisition price will be determined. Based upon this acquisition price, acquisition consideration can be allocated that may include: cash, the common stock of AMDL and or stock options for AMDL's common stock. Prior to signing a Definitive Agreement, GLP and JPI pay for (50/50) and engage the international accounting firm of Baker Tilly (Hong Kong) to complete a two-year plus stub audit of GLP to U.S. GAAP accounting standards. Prior to executing a Definitive Agreement both JPI and GLP will work together to create a new 2-year business plan and capital budget that will be agreed to by both Parties.

About Jade Pharmaceutical: Jade has access to the fastest growing pharmaceutical and consumer market in the world: China. AMDL, through its subsidiaries, Jade currently manufactures large volume injection fluids, tablets and other related products, holding licenses for 133 products. It also manufactures 107 generic, over the counter and supplemental pharmaceutical products under certified Chinese Good Manufacturing Practice (CGMP) standards.

About AMDL: More information about AMDL and its products can be obtained at http://www.amdl.com.

Forward-Looking Statements

Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's partners that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.

Contact: AMDL, Inc.

Mr. Paul Knopick

AMDL Investor Relations

Direct Line: 949.707.5365

VoiceMail: 714.505.4460


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SOURCE AMDL, Inc.
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