Dow Jones 10488.07 -22.22 2:00 pm PST, January 30, 2004  NASDAQ 2066.15 -2.08 For info, visit access.smallcapnetwork.com S & P 500 1131.13 -2.98 To be removed, please click here Russell 2000 580.76 +0.90 VOLUME 04: ISSUE 7  Feature: Biophan: Financing means opportunity. SmallCap readers are well aware that nanotechnology concern Biophan (OTCBB: BIPH) can be both volatile and very profitable. We Alerted the readership to accumulate BIPH at 35 cents in late December, and advised taking partial profits at the $1.50 level in mid-January--a 320 percent-plus return in three weeks.  Now, a scant couple of weeks later, due to market weakness and today's substantive corporate announcements (release attached--scroll down and read it, I'll wait) we believe that it's time, once again, to look at accumulating Biophan stock. We recommend that investors (re-) accumulate Biophan around the $1.10-$1.20 level. However, given the volatility of the market and individual sectors, a sell stop at 90-95 cents would be prudent. Don't bet the farm, but a few acres (or maybe using some profit from the last run) at these levels appear to make sense for risk-oriented investors. The shares did pull back to our previously stated buy range of around $1.00, earlier in the week. Since then, the shares have popped back to the $1.20 level, Friday, and the announcement below --detailing a nifty financing package -- will likely help continue the stock price's upward progress. A Non-Toxic injection. This first round, fixed price financing gives BIPH immediate access to almost $3 million. More importantly, that fixed price aspect to the funds adds stability and guards against the conversion toxicity of an equity credit line that--as we've seen before with other companies-- can be extremely hazardous to a company's progress and share price.  The funds will be used to expand Biophan's products, its biotech portfolio and provide crucial resources needed for accelerated marketing programs and potential strategic acquisitions. Friday's announcement also moves the company closer to its goal of seeking a listing on a major exchange--which would further raise its profile, both to public and institutional investors. As an aside, Biophan CEO Michael Weiner is scheduled to present at the FSX Capital Conference in Dallas this weekend. The attendees will be primarily broker dealers from around the US as well as emerging growth public companies.  What a difference a couple of months makes! Rarely does one see a company such as Biophan that has accomplished as much as it has in such a short period of time. The company has done so by growing its biotech intellectual property portfolio and patents, as well as attracting significant non-toxic financing to attain its goals. Risk oriented investors would be well advised to accumulate shares.  Now this isn't to say the stock won't be volatile--it will be--but the risk of no position over the short to medium term as opposed to even a small purchase will likely prove costly in terms of lost opportunity. The extremely heavy trading volumes noted of late are testament to the success of Biophan's efforts to get its story out. Biophan is on the cutting edge of improving virtually all critical medical devices including pacemakers, stents, catheters and shunts-- thereby enabling patients with these devices and implants to have life-saving MRI scans. The company's technologies are nothing short of amazing, and as this initiative is likely just one in a long line of products and proprietary patents to improve the efficacy of therapies and the quality of life for patients, we believe that the potential for appreciation in the share price is very compelling.  As well, the deal announced late last year with medical appliance maker Boston Scientific (NYSE: BSX) will likely be representative of many more to come in the months and years ahead. Perhaps the most exciting thing about the recent financing is that Biophan now has the cash and resources to execute its business plan.  Companies that might consider infringing on the patents of this small biotech company would be better advised to take the path of least resistance and enter into a royalty arrangement instead. Or buy the shares of Biophan as a hedge....   News Release Biophan Technologies Completes First Round of Financing for $2.9 Million Friday January 30, 4:45 pm ET Financing Funds BIPH Strategic Plan and Potential Major Exchange Listing ROCHESTER, N.Y.--(BUSINESS WIRE)--Jan. 30, 2004--Biophan Technologies, Inc. (OTCBB:BIPH - News), an innovator, developer and marketer of MRI-related and other advanced biomedical technology, announced today that it has completed its first round of financing with SBI-Brightline, Irvine, California. The financing will further enable the company to pursue its previously announced strategic initiatives which include expansion of its patent portfolio, acceleration of marketing programs, potential strategic acquisitions, and the exploration of a potential listing on a major exchange. "Financing is obviously a critical component in driving the growth of any young company," stated Mr. Weiner. "We are now properly capitalized with over $2 million in cash on hand and a positive net worth. We were very pleased with the fixed price financing we concluded with SBI. By having a fixed price financing, the company can elect to draw down as much capital as needed, without the vagaries or potential toxicity of an equity credit line and it is, therefore, a much more attractive and stable form of financing." Mr. Weiner also noted, "The financing moves us closer toward meeting the net worth and working capital requirements for listing on a major exchange. The facility gives us access to the capital needed to ensure we meet our development objectives in several critical markets and expand our marketing efforts in segments, including pacemakers, defibrillators, neurostimulators, prosthetics, catheters, guidewires, stents, shunts, and our development of MRI contrast agents. We will be able to take advantage of additional nanotechnology that meets our strategic objectives. Our involvement with biomedical device companies gives us unique market perspective for identifying ripe opportunities." "Additionally, we plan to expand our patent portfolio and perfect international patent filings in critical markets," Mr. Weiner continued. An additional patent for using nanotechnology for MRI contrast agents has been allowed by the U.S. Patent and Trademark Office. Biophan recently expanded its technology license with Nanoset, LLC, to include any inventions relating to MRI Safety and MRI Image Compatibility, including electrical circuits and filtering combined with nanotechnology coatings. About Biophan Technologies, Inc. Biophan Technologies develops and markets cutting-edge technologies used to make biomedical devices--such as cardiac pacemakers, surgical and diagnostic tools--safe and compatible with magnetic resonance imaging (MRI) equipment. Committed to growth through innovation and developmental leadership, Biophan and its licensors have four issued U.S. patents and over fifty patents pending, in areas including nanomagnetic particle coatings, radio frequency filters, polymer composites, and photonics. Biophan's technology will help realize its goal of one day making all biomedical devices capable of safely and successfully working with MRI. Cautionary Statement Regarding Forward-Looking Statements Certain statements included in this press release may constitute forward-looking statements. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors including, but not limited to: the development of Biophan's MRI technologies; the approval of Biophan's patent applications; the successful implementation of Biophan's research and development programs; the acceptance by the market of Biophan's products; competition and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in Biophan's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with Biophan's periodic filings with the SEC. The forward-looking statements contained herein are made only as of the date of this press release, and Biophan undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Contact: Trilogy Capital Partners, Inc. Racquel Rivera, 800-330-6540 racquel@trilogy-capital.com or Press Interviews: Michael Weiner, 585-214-2441   Source: Biophan Technologies, Inc.   We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 3525 Del Mar Heights Rd #334 San Diego, CA 92130 Unsubscribe Here D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest is not a registered investment advisor or broker-dealer. 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