ADL Amdl,

Item 8.01 Other Events.

On October 3, 2007, AMDL, Inc. obtained products liability insurance coverage for Jade Pharmaceutical Inc.'s ("JPI") pharmaceutical manufacturing and distribution activities in China from PICC Property and Casualty Company Limited in the aggregate amount of US $2,000,000 at a cost of approximately US $65,500 for one year of coverage. The policy is retroactive to October 1, 2006, the date of first operations after the acquisition of JPI and provides that AMDL/JPI shall retain and indemnify the insurance carrier for liability of US $ 10,000 per claim up to an aggregate of $50,000 in any year. The prior US based policy provided for aggregate coverage of US $ 2 million. No carrier contacted by JPI was willing to provide greater coverage at this time.

AMDL believes that the new products liability insurance is adequate for its current needs, but there can be no assurance, however, that claims from the use of JPI's products would not exceed the available coverage, or that one or more claims for damages may require the expenditure of significant funds in defense of such claims. Moreover, one or more substantial awards of damages against JPI or AMDL could have a material adverse effect on JPI and AMDL by reason of the inability to defend against or pay such claims, although to date neither AMDL or JPI has received any claim for damages for the manufacture or use of any of their products by any company or individual.