AMDL Signs Letter of Intent to Purchase China-Based Pharmaceutical Distribution Company

TUSTIN, Calif. (Map) - TUSTIN, Calif., July 1 /PRNewswire-FirstCall/ -- AMDL, Inc. (Amex: ADL), a leading vertically integrated bio-pharmaceutical company headquartered in Tustin, California, with major operations in the U.S. and China, announced today a letter of intent (LOI) has been signed between AMDL's wholly-owned subsidiary Jade Pharmaceutical Inc. (JPI) and China-based Sichuan ZhiTong Pharmaceutical, Ltd. (SZP). SZP is a privately-held China-based pharmaceutical distribution company that sells and distributes traditional Chinese medicines, health foods, medical equipment, and generic pharmaceutical products.

SZP has been a distributor for AMDL since the fourth quarter of 2007, selling the company's Domperidone anti-emetic product. SZP sells approximately $100,000 per month of Domperidone and AMDL expects these sales levels to increase to at least $200,000 per month over the next 60 days for this product due to increased marketing efforts. Under the terms of the LOI, SZP and JPI will consolidate sales forces and enter into a distribution agreement where SZP will distribute additional AMDL pharmaceutical products including GoodNak, Levofloxicin and Ondansetron. SZP currently employs approximately 80 in-house sales agents.

AMDL, JPI and SZP have agreed to retain an independent China-based business valuation company to determine the value of SZP. Based upon that valuation and negotiations between JPI and SZP, an acquisition price will be determined and acquisition consideration will be allocated that may include cash, common stock of AMDL, and/or stock options to purchase common shares of AMDL. Prior to signing the definitive agreement, SZP and JPI have agreed to engage an international accounting firm to complete a two-year audit of SZP in accordance with GAAP accounting standards. Prior to executing a Definitive Agreement, both JPI and SZP will work together to create a new two-year business plan and capital budget.

In FY2007, SZP had gross sales of approximately $24 million and anticipates FY2008 sales of $35.7 million with approximately 10% net after-tax profit margins. Subject to due diligence by JPI and other conditions, JPI may acquire up to 100 percent ownership in SZP. Best efforts will be made by both JPI and SZP to complete the purchase of SZP by October 1, 2008.

AMDL has terminated a previously announced LOI to acquire Guangzhou Lazon Pharmacy Co., Ltd. (GLP), a Guangzhou-based distributor based on material uncovered through the due diligence process.

About AMDL:

AMDL, Inc. is a specialty pharmaceutical company. The Company is headquartered in Tustin, California with operations in Shenzhen, Jiangxi, and Jilin, China. Along with its subsidiary Jade Pharmaceutical Inc. (JPI), AMDL is devoted to the research, development, manufacturing, and marketing of diagnostic, pharmaceutical, nutritional supplement, and cosmetic products currently in China. The company employs approximately 320 people in the U.S. and China. More information about AMDL and its products can be obtained at http://www.amdl.com.

About Jade Pharmaceutical:

JPI has access to the fastest growing pharmaceutical and consumer market in the world: China. AMDL, through its subsidiary 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.

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 Communications
     Kristine Szarkowitz
     206/310-5323
     Kszarkowitz@amdl.com