ADL Amdl,

TUSTIN, Calif., July 10 /PRNewswire-FirstCall/ -- AMDL, Inc. (AMEX:ADL), headquartered in Tustin, California, with operations in Shenzhen, Jiangxi and Jilin, China, through its wholly owned subsidiary Jade Pharmaceutical Inc. is an international biopharma company. Together with Jade, AMDL engages in the development, manufacture and marketing of proprietary pharmaceutical and diagnostic products. AMDL's CEO, Gary Dreher, today addressed the Company's stockholders in this letter mailed with AMDL's 2006 Annual Report. It follows in full: Dear Stockholders of AMDL, Inc.: On Sept 8, 2006, AMDL's stockholders approved the acquisition of Jade Pharmaceutical Inc. ("Jade") and its two wholly owned China-based pharmaceutical manufacturing subsidiaries. Jade's business activities in China provide AMDL access to the fastest growing pharmaceutical market in the world and an ideal platform to introduce AMDL's DR-70(R) kits and CIT technology. The acquisition of Jade represents a huge step forward in AMDL's commitment to diagnosing and treating cancer worldwide. It is truly an exciting time for AMDL and our stockholders, as we move forward into a new phase of growth and opportunity since our acquisition of Jade and as we continue the development of our flagship diagnostic and therapeutic products. Our goal is to build a profitable broad based international pharmaceutical enterprise. We're achieving this by combining our cancer detection, gene therapy research, and vaccine technologies with Jade's profitable China-based pharmaceutical manufacturing, consumer sales, and clinical trials business. Through its subsidiaries, Jade manufactures large and small volume parenteral solutions, tinctures, tablets and over 50 additional pharmaceutical products. Jade holds licenses for 133 various products and currently manufactures 107 generic, over-the-counter, and supplement pharmaceutical products, under certified Chinese Good Manufacturing Practice ("CGMP") standards. Over the past six months, Jade has added eight new generic drugs to its expanding product line. AMDL expects these products to create significant core sales growth beginning in the 3rd quarter of 2007. These key products are now being sold through Jade's three new premier distribution partners, who are required to meet aggregate minimum sales thresholds of approximately US$11.4 million for all of the distribution contracts. Based upon all three distribution agreements and discussions between Jade and its new distribution partners, Jade management believes that there is a potential to increase its sales in the Northern and Southern Chinese markets, as well as the Shanghai regional market by as much as US$24 million over the next 12 month sales cycle. Domperidon tablets and Ondansetron Injectables are expected to be the largest selling products. Jade has just received $1.3 million in initial product orders from two of these distribution partners. As resources permit, Jade anticipates expanding its current domestic Chinese distribution beyond the cities in which they currently sell through the utilization of new distribution firms in regions currently not covered. Jade has opened one retail outlet known as a "Jiexhong Healthy Supermarket" and intends to engage in this new line of business through joint ventures in major cities throughout China. We have chartered a new course and our future is bright. Jade gives AMDL access to the fastest growing pharmaceutical and consumer market in the world: China. Jade has Chinese GMP manufacturing in place and a new path to build manufacturing capabilities in China that may foster worldwide sales of existing and to-be-developed products. Jade has a platform to in-license North American drugs for manufacture and sale in China and Asia. Jade has the potential to build US$100 million in annual sales of cancer-focused products (prevention, detection, and therapy) within the next 4-5 years. We appreciate your confidence and support in achieving our goal to become a premier cancer detection and world-class biopharmaceutical company. Gary L. Dreher Chief Executive Officer AMDL, Inc. Forward-Looking Statements: This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, and actual circumstances, events or results may differ materially from those projected in such forward-looking statements. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur. Mr. Paul Knopick AMDL Investor Relations Direct Line: 949.707.5365 Voice Mail: 714.505.4460 DATASOURCE: AMDL, Inc. CONTACT: AMDL Investor Relations, Mr. Paul Knopick, +1-949-707-5365, or Voice Mail, +1-714-505-4460

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