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<SEC-DOCUMENT>0001297077-08-000109.txt : 20081215
<SEC-HEADER>0001297077-08-000109.hdr.sgml : 20081215
<ACCEPTANCE-DATETIME>20081215172654
ACCESSION NUMBER:		0001297077-08-000109
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20081031
FILED AS OF DATE:		20081215
DATE AS OF CHANGE:		20081215

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHAMPIONS BIOTECHNOLOGY, INC.
		CENTRAL INDEX KEY:			0000771856
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				521401755
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		081250595

	BUSINESS ADDRESS:	
		STREET 1:		2200 WILSON BLVD
		STREET 2:		SUITE 102-316
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201
		BUSINESS PHONE:		703-526-0400

	MAIL ADDRESS:	
		STREET 1:		2200 WILSON BLVD.
		STREET 2:		SUITE 102-316
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHAMPIONS SPORTS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERNATIONAL GROUP INC
		DATE OF NAME CHANGE:	19860319
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>cbi10q_103108v2.htm
<DESCRIPTION>CBI 10/31/2008
<TEXT>
<html>
<head><meta content="text/html; charset=">
<title>SECURITIES AND EXCHANGE COMMISSION</title>
</head>

<body >
<ul>
</ul>

<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>UNITED STATES </b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>SECURITIES AND EXCHANGE
COMMISSION</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Washington, D.C. 20549</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<b>FORM 10--Q</b></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="513.333205" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="557.333194" colspan="2" rowspan="1" >
<p>
<font size="2">Mark One</font></p>
</td>
</tr>
<tr valign="top">
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="513.333205" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<font size="2">[X]</font></p>
</td>
<td width="513.333205" colspan="1" rowspan="1" >
<p>
<font size="2">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></p>
</td>
</tr>
<tr valign="top">
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="513.333205" colspan="1" rowspan="1" >
<p>
<font size="2">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
</td>
</tr>
<tr valign="top">
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="513.333205" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">For the quarterly period ended October 31,
2008</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">OR</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<font size="2">[&nbsp;&nbsp;&nbsp;]</font></p>
</td>
<td width="513.333205" colspan="1" rowspan="1" >
<p>
<font size="2">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></p>
</td>
</tr>
<tr valign="top">
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="513.333205" colspan="1" rowspan="1" >
<p>
<font size="2">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">For the transition period from ______ to
________</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Commission file number
<u>&nbsp;0--17263</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><u>CHAMPIONS BIOTECHNOLOGY,
INC.</u></b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Exact name of registrant as specified in its
charter)</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>Delaware</u></font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>52--1401755</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(State or other jurisdiction of</font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(I.R.S. Employer</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p align="center">
<font size="2">organization)</font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Identification No.)</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="267.999933" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>1400 N. 14<sup>th</sup> Street, Arlington,
VA</u></font></p align="center">
</td>
<td width="238.666607" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>22209</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="267.999933" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Address of principal executive
offices)</font></p align="center">
</td>
<td width="238.666607" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Zip code)</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>(410) 630--1313</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Registrant&#8217;&#8217;s telephone number, including area
code)</font></p align="center">
</td>
</tr>
</table></div>
<p align="center">
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">______________________________</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Former address)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the Registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.&nbsp;&nbsp;&nbsp;Yes <u>&nbsp;X&nbsp;</u>&nbsp;No  __</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check
mark&nbsp;whether the registrant is a large accelerated filer, an accelerated
filer, a non--accelerated filer, or a smaller reporting company.  See the
definitions of &#8220;&#8220;large accelerated filer,&#8221;&#8220;
&#8220;&#8220;accelerated filer&#8221;&#8220; and &#8220;&#8220;smaller
reporting company&#8221;&#8220; in Rule 12b--2 of the Exchange Act.</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="158.666627" colspan="1" rowspan="1" >
<p>
<font size="2">Large accelerated
filer&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]</font></p>
</td>
<td width="277.333264" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="201.333283" colspan="1" rowspan="1" >
<p>
<font size="2">Accelerated filer&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]</font></p>
</td>
</tr>
<tr valign="top">
<td width="158.666627" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="277.333264" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="201.333283" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="158.666627" colspan="1" rowspan="1" >
<p>
<font size="2">Non--accelerated
filer&nbsp;&nbsp;&nbsp;[&nbsp;&nbsp;&nbsp;]</font></p>
</td>
<td width="277.333264" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Do not check if a smaller reporting
company)</font></p align="center">
</td>
<td width="201.333283" colspan="1" rowspan="1" >
<p>
<font size="2">Smaller reporting company&nbsp;&nbsp;[X]</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<font size="2">Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b--2 of the Exchange Act</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<font size="2">Yes    <u>    </u>    No&nbsp;<u>&nbsp;X&nbsp;</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<font size="2">As of December 15, 2008, the Registrant had a total of 33,272,718
shares of common stock outstanding.</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>FORM 10--Q</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>INDEX</u></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">PART I.</font></p>
</td>
<td width="633.333175" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Financial Information</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Item 1.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Financial Statements</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Condensed Consolidated Balance Sheets as of October  31, 2008
(Unaudited) and April 30, 2008 (Audited)</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">3</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Condensed Consolidated Statements of Operations</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">for the Six months and Three months ended October 31, 2008 and
2007 (Unaudited)</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">4</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Condensed Consolidated Statements of Cash Flows for
the</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Six months ended October 31, 2008 and 2007 (Unaudited)</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">5</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Notes to Condensed Consolidated Financial Statements
(Unaudited)</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">6--8</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Item 2.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Management&#8217;&#8217;s Discussion and Analysis of Financial
Condition and Results of Operations</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">9--12</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"> </font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Item 3.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Quantitative and Qualitative Disclosures About Market
Risk</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">12</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Item 4.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Controls and procedures</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">12</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
<p>
<font size="2">PART II.</font></p>
</td>
<td width="633.333175" colspan="2" rowspan="1" >
<p>
<font size="2">Other Information</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">Item 1.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" >
<p>
<font size="2">Legal Proceedings.</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" >
<p>
<font size="2">13</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Item 2.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Unregistered Sales of Equity Securities and Use of
Proceeds.</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">13</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">Item 3.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" >
<p>
<font size="2">Defaults Upon Senior Securities.</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" >
<p>
<font size="2">13</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Item 4.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Submission of Matters to a Vote of Security Holders.</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">13</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">Item 5.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" >
<p>
<font size="2">Other Information</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" >
<p>
<font size="2">13</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Item 6.</font></p>
</td>
<td width="567.999858" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Exhibits</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="633.333175" colspan="2" rowspan="1" >
<p>
<font size="2">Signatures&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" >
<p>
<font size="2">14</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">2&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>PART I</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="59.999985" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Item 1.</b></font></p>
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Financial Statements</b></font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>AND</b> <b>SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CONDENSED CONSOLIDATED BALANCE
SHEETS</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2">October 31, 2008</font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2">April 30, 2008</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="center">
<font size="2"><b>(Unaudited)</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(Audited)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>ASSETS</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>CURRENT ASSETS</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Cash and cash equivalents</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">3,052,558&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,709,136&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Accounts receivable</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">77,091&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;&nbsp;--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Prepaid expenses</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">152,242&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
<font size="2">52,873&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Prepaid contract expenses</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">43,374&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets
</b></font></p>
</td>
<td width="119.999970" colspan="3" rowspan="1" >
<p align="right">
<font size="2">3,325,265&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,762,009&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;Intangibles assets</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">236,531&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">227,465&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;Goodwill</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">661,909&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">661,909&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>TOTAL ASSETS</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">4,223,705&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">4,651,383&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>LIABILITIES AND STOCKHOLDERS&#8217;&#8217;
EQUITY</b></font></p>
</td>
<td width="119.999970" colspan="3" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="646.666505" colspan="6" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>CURRENT LIABILITIES</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Accounts payable</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
<font size="2">307,828&nbsp;</font></p align="right">
</td>
<td width="26.666660" colspan="2" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
<font size="2">147,971&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Deferred revenue</font></p>
</td>
<td width="117.333304" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">461,838&nbsp;</font></p align="right">
</td>
<td width="26.666660" colspan="2" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">504,622&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued
expenses</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
<td width="26.666660" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">361,275&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current
liabilities</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">769,666&nbsp;</font></p>
</td>
<td width="26.666660" colspan="2" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,013,868&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="26.666660" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="26.666660" colspan="2" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="646.666505" colspan="6" rowspan="1" >
<p>
<font size="2"><b>COMMITMENTS AND CONTINGENCIES</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="646.666505" colspan="6" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="646.666505" colspan="6" rowspan="1" >
<p>
<font size="2"><b>STOCKHOLDERS&#8217;&#8217; EQUITY</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Preferred stock, $10 par value; 56,075 shares
authorized;</font></p>
</td>
<td width="119.999970" colspan="3" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;&nbsp;&nbsp;0 shares issued and outstanding</font></p>
</td>
<td width="119.999970" colspan="3" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Common stock, $.001 par value; 50,000,000 shares
authorized;</font></p>
</td>
<td width="119.999970" colspan="3" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;33,272,718 and  33,247,718 shares issued and
outstanding</font></p>
</td>
<td width="119.999970" colspan="3" rowspan="1" >
<p align="right">
<font size="2">33,273&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right">
<font size="2">33,248&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Additional paid--in capital</font></p>
</td>
<td width="119.999970" colspan="3" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">11,643,233&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">11,715,182&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Accumulated deficit</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(7,467,619)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(7,068,547)</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="119.999970" colspan="3" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">4,208,887&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">4,679,883&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Prepaid consulting</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(754,848)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(1,042,368)</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Total stockholders&#8217;&#8217; equity</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,454,039&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,637,515&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>TOTAL LIABILITIES AND STOCKHOLDERS&#8217;&#8217;
EQUITY</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">4,223,705&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">4,651,383&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">The accompanying notes are an integral part of these condensed
consolidated financial statements.</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">3&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;AND SUBSIDIARIES	</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>FOR THE SIX MONTHS AND THREE MONTHS ENDED OCTOBER 31, 2008 AND
2007 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="129.333301" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="129.333301" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="163.999959" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>Six Months Ended October 31</b></font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="177.333289" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>Three Months Ended October 31</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2">&nbsp;</font></p align="center">
</td>
<td width="113.333305" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2">&nbsp;</font></p align="center">
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2">&nbsp;</font></p align="center">
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2">&nbsp;</font></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2">&nbsp;</font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2">&nbsp;</font></p align="center">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2"><b><u>2008</u></b></font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2"><b><u>2007</u></b></font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2"><b>&nbsp;</b></font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2"><b><u>2008</u></b></font></p align="center">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2"><b>&nbsp;</b></font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center">
<font size="2"><b><u>2007</u></b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="129.333301" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="131.999967" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>REVENUES</b></font></p>
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="303.999924" colspan="4" rowspan="1" >
<p>
<font size="2">    Personalized oncology and preclinical contract
revenue</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,717,289&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">250,000&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,044,172&nbsp;</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> $ </font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> --&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="113.333305" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="243.999939" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total revenues</b></font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,717,289&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right">
<font size="2">250,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,044,172&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> --&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="113.333305" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261.333268" colspan="3" rowspan="1" >
<p>
<font size="2"><b>OPERATING EXPENSES</b></font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="113.333305" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261.333268" colspan="3" rowspan="1" >
<p>
<font size="2">    Research and development</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">636,567&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right">
<font size="2">105,910&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">419,404&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">30,910&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="322.666586" colspan="5" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    Cost of personalized oncology and preclinical contract
revenue</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">718,186&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">63,039&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">458,586&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261.333268" colspan="3" rowspan="1" >
<p>
<font size="2">    General and administrative</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">807,437&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">228,040&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">422,885&nbsp;</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">119,288&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="113.333305" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="3" rowspan="1" >
<p>
<font size="2"><b>Total operating expenses</b></font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,162,190</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">396,989&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,300,875&nbsp;</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">150,198&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="113.333305" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="303.999924" colspan="4" rowspan="1" >
<p>
<font size="2"><b>OPERATING (LOSS)</b></font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(444,901)</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(146,989)</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(256,703)</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(150,198)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="113.333305" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261.333268" colspan="3" rowspan="1" >
<p>
<font size="2"><b>OTHER INCOME</b></font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font face="Arial" size="2">&nbsp;</font></p>
</td>
<td width="243.999939" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    Interest income</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">45,829&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">9,994&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">25,113&nbsp;</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,635&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="129.333301" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="113.333305" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="303.999924" colspan="4" rowspan="1" >
<p>
<font size="2"><b>(LOSS) BEFORE TAXES</b></font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(399,072)</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(136,995)</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(231,590)</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> $ </font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (145,563)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261.333268" colspan="3" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    Provision for income taxes</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="129.333301" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="261.333268" colspan="3" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>NET (LOSS)</b></font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">(399,072)&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">(136,995)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">(231,590)&nbsp;</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2"> $ </font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2"> (145,563)</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="129.333301" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="303.999924" colspan="4" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>(Loss) per common share:</b></font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261.333268" colspan="3" rowspan="1" >
<p>
<font size="2"><b>    Basic and diluted</b></font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(0.01)</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(0.00)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(0.01)</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> $ </font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(0.00)</font></p>
</td>
</tr>
<tr valign="top">
<td width="131.999967" colspan="2" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="322.666586" colspan="5" rowspan="1" >
<p>
<font size="2"><b>Shares used in calculating (loss) per common
share:</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="37.333324" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="66.666650" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="131.999967" colspan="2" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>    Basic and diluted</b></font></p>
</td>
<td width="129.333301" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font face="Arial" size="2"><b>&nbsp;</b></font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font face="Arial" size="2"><b>&nbsp;</b></font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font face="Arial" size="2"><b>&nbsp;</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font face="Arial" size="2"><b>&nbsp;</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">33,270,816&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font face="Arial" size="2">&nbsp;</font></p align="right">
</td>
<td width="69.333316" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">31,233,353&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">33,272,718&nbsp;</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">31,624,658&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">The accompanying notes are an integral part of these condensed
consolidated financial statements.</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">4&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>FOR THE SIX MONTHS ENDED OCTOBER 31, 2008 AND 2007
(UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>2008</b></font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>2007</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>CASH FLOWS FROM OPERATING ACTIVITIES</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Net (loss) </font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(399,072)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(136,995)&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Adjustments to reconcile net (loss) to net cash (used
in) operating <b>activities:</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Share based compensation</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">25,743</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">--</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefits
from share based payment arrangements&nbsp;&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(9,010)</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prepaid
consulting services</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">182,353&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">63,287</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">Changes in:</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;(Increase) in accounts receivable</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(77,091)</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;(Increase) in prepaid expenses</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">(99,368)</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;(Increase) in prepaid contract expenses</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(43,374)</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"> </font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp; Increase (decrease) in accounts payable</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right">
<font size="2">159,858&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(7,561)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;(Decrease) in deferred revenue</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">(42,785)&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;(Decrease) increase in other accrued
expenses</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(361,275)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">15,743&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2"><b>    &nbsp;Net cash (used in) operating
activities</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(664,021)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(65,526)&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM INVESTING ACTIVITIES</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>    &nbsp;</b>(Increase) in intangible assets</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(9,067)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;<b>Net cash (used in) investing
activities</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(9,067)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>CASH FLOWS FROM FINANCING ACTIVITIES</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">    &nbsp;Payment of officers loan payable</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">(43,693)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Proceeds from exercise of options</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7,500&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excess tax benefits
from share based payment arrangements</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">9,010&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by
(used in) financing activities</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">16,510&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(43,693)</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>    &nbsp;Net (decrease) in cash and cash
equivalents</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">(656,578)</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">(109,219)&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS &nbsp;BEGINNING OF
PERIOD</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,709,136&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">475,135&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS -- END OF PERIOD</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">3,052,558&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right" style="border-bottom:double">
<font size="2">365,916&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2"><b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Cash paid during the period for:</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
paid</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Tax
Paid</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="515.999871" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="85.333312" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="615.999846" colspan="3" rowspan="1" >
<p>
<font size="2"><b>SUPPLEMENTAL SCHEDULE OF NON--CASH FLOW INVESTING AND
FINANCING ACTIVITIES:</b></font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="615.999846" colspan="3" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">In May 2007, the Company issued 525,000 stock options for prepaid
consulting valued at $157,473.</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="615.999846" colspan="3" rowspan="1" >
<p>
<font size="2">In May 2007, the Company issued 4,000,000 shares for 100% of
Biomerk, Inc.</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="615.999846" colspan="3" rowspan="1" bgcolor=#99CCFF>
<p>
<font size="2">In October  2007, the Company issued 500,000 stock options for
prepaid consulting valued at $336,287.</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" bgcolor=#99CCFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="615.999846" colspan="3" rowspan="1" >
<p>
<font size="2">In August 2008, the Company issued 150,000 warrants for prepaid
consulting valued at $93,870.</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="79.999980" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2">The accompanying notes are an integral part of these condensed
consolidated financial statements.</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">5&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2008 AND 2007
(UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>(1) <u>ORGANIZATION AND BASIS OF PRESENTATION
</u></b></font><p>
<font size="2">The accompanying condensed consolidated financial statements of
Champions Biotechnology, Inc. ("Champions" or the "Company") as of and for the
six months ended October&nbsp;31, 2008 and 2007 are unaudited. The accompanying
unaudited condensed consolidated balance sheets, statements of operations and
statements of cash flows have been prepared in accordance with U.S. generally
accepted accounting principles (GAAP) for interim financial information and in
conjunction with the rules and regulations of the Securities and Exchange
Commission (SEC). Accordingly, they do not include all of the disclosures
required by Generally Accepted Accounting Principles
(&#8220;&#8220;GAAP&#8221;&#8220;) for complete financial statements. The
financial statements reflect all adjustments, consisting only of normal,
recurring adjustments, which are in the opinion of management, necessary for a
fair presentation for the interim periods. Management of the Company has made a
number of estimates and assumptions relating to the reporting of assets and
liabilities and related revenue and expense accounts and the disclosure of
contingent assets and liabilities to prepare these condensed consolidated
financial statements in conformity with GAAP. Actual results could differ
materially from those estimates. These financial statements should be read in
conjunction with the audited consolidated financial statements and notes thereto
included in the Company&#8217;&#8217;s Annual Report on Form&nbsp;10--KSB for
the fiscal year ended April 30, 2008. The results for the six months and three
months ended October 31, 2008 may not be indicative of the results for the
entire year.</font><p>
<font size="2"><b><u>Impact of Recent Accounting
Pronouncements</u></b></font><p>
<font size="2">The Company adopted Statement of Financial Accounting Standards
("SFAS") No. 157, "Fair Value Measurement" ("SFAS No. 157") on May 1, 2008.
SFAS&nbsp;157 defines fair value as the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date (an exit price). The standard outlines a
valuation framework and creates a fair value hierarchy in order to increase the
consistency and comparability of fair value measurements and the related
disclosures. Under GAAP, certain assets and liabilities must be measured at fair
value, and SFAS&nbsp;157 details the disclosures that are required for items
measured at fair value. In February 2008, the Financial Accounting Standards
Board issued Staff Position No.&nbsp;157--2 (FSP 157--2), which delays the
effective date of SFAS&nbsp;157 for one year for all nonfinancial assets and
liabilities, except those that are recognized or disclosed at fair value in the
financial statements on a recurring basis. The Company does not have
nonfinancial assets and nonfinancial liabilities that are required to be
measured at fair value on a recurring basis. Based on this guidance, the Company
expects to adopt the provisions of SFAS&nbsp;157 as related to nonfinancial
assets and nonfinancial liabilities, effective January&nbsp;1, 2009 and this
adoption is not expected to have a material impact on the Company&#8217;&#8217;s
financial statements.</font><p>
<font size="2">The Company did not elect the fair value measurement option under
SFAS No. 159, "The Fair Value Option for Financial Assets and
Liabilities&#8221;&#8220; and presently, the Company does not have any financial
assets and liabilities that would need to be measured under the fair measurement
option under SFAS 159.</font><p>
<font size="2">In December 2007, the FASB issued SFAS No.&nbsp;160,
"Non--controlling Interests in Consolidated Financial Statements: an amendment
of ARB No.&nbsp;51" ("SFAS No.&nbsp;160"). SFAS No.&nbsp;160 replaces the term
minority interests with the newly--defined term of non--controlling interests
and establishes this line item as an element of stockholders&#8217;&#8217;
equity, separate from the parent&#8217;&#8217;s equity. SFAS No.&nbsp;160 also
includes expanded disclosure requirements regarding the interests of the parent
and its non--controlling interest. The Company is continuing to review the
provisions of SFAS No.&nbsp;160, which is effective the first quarter of fiscal
2010, and currently does not expect this new accounting standard to have a
significant impact on the Financial Statements. </font><p>
<font size="2">In March 2008, the FASB issued SFAS No.&nbsp;161, "Disclosures
about Derivative Instruments and Hedging Activities: an amendment of FASB
Statement No.&nbsp;133" ("SFAS No.&nbsp;161"). SFAS No.&nbsp;161 changes the
disclosure requirements for derivative instruments and hedging activities. The
Company is reviewing the provisions of SFAS No.&nbsp;161, which is effective the
first quarter of fiscal 2010, and currently does not anticipate that this new
accounting standard will have a significant impact on the Financial Statements.
</font><p>
<font size="2">In May 2008, the FASB issued SFAS No. 162, "The Hierarchy of
Generally Accepted Accounting Principles" (SFAS No. 162). SFAS No. 162
identifies the sources of accounting principles and the framework for selecting
principles used in the preparation of financial statements.&nbsp;&nbsp;SFAS No.
162 is effective 60 days following the SEC&#8217;&#8217;s approval of the Public
Company Accounting Oversight Board amendments to AU Section 411, "The Meaning of
Present Fairly in Conformity with Generally Accepted Accounting Principles". The
effective date of SFAS No. 162 has not yet been determined.  The implementation
of this standard will not have a material impact on the Financial
Statements.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">6&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2"><b><u>Reclassifications</u></b></font><p>
<font size="2">The Company has reclassified certain amounts for the six months
and three months ended October 31, 2007 to conform to the presentation of the
October 31, 2008 amounts.  The reclassifications have no effect on the net loss
for the periods ended October 31, 2008.</font><p>
<font size="2"><b>(2) <u>NET (LOSS) PER SHARE</u></b></font><p>
<font size="2">Basic earnings per common share (EPS) is computed by dividing net
income by the weighted--average number of common shares outstanding during the
period. Diluted EPS is computed by dividing net income by the weighted--average
number of common shares outstanding during the period increased to include all
additional common shares that would have been outstanding assuming potentially
dilutive common share equivalents had been issued. Dilutive common share
equivalents include (1)&nbsp;the dilutive effect of in--the--money shares
related to stock options, which is calculated based on the average share price
for each period using the treasury stock method.  Under the treasury stock
method, the exercise price of an option, the average amount of compensation
cost, if any, for future service that the Company has not yet recognized, and
the amount of tax benefits that would be recorded in additional paid--in
capital, if any, when the option is exercised, are assumed to be used to
repurchase shares in the current period. For the six months ended
October&nbsp;31, 2008 and 2007, there were an aggregate of 793,136 and 711,765,
respectively, potential common shares related to share--based instruments,
excluded from the diluted EPS computation because their inclusion would have had
an anti--dilutive effect. </font><p>
<font size="2">The following is a reconciliation of the computation for basic
and diluted EPS:</font></p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2"><b>October 31,</b></font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2"><b>October 31,</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2008</b></font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2007</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="89.333311" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" >
<p>
<font size="2">Net (loss)</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(399,072)</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;$</font></p align="right">
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(136,995)&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Weighted--average common shares</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="219.999945" colspan="2" rowspan="1" BGCOLOR=#ffffff>
&nbsp;outstanding (basic and diluted)	</td>
<td width="18.666662" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:double">
<font size="2">33,270,816&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:double">
<font size="2">31,233,353&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>(3) <u>COMMITMENTS AND CONTINGENCIES</u></b></font><p>
<font size="2"><b><u>Operating leases</u></b></font><p>
<font size="2">The Company leases, as tenant, space under an operating lease,
which expires February 29, 2009. </font><p>
<font size="2">Rental expense during the six months and three months ended
October 31, 2008  was $39,364 and $20,084, respectively.  Rental expenses for
the six months and three months ended October 31, 2007 was $0.</font><p>
<font size="2"><b>(4) <u>SHARE BASED COMPENSATION</u></b></font><p>
<font size="2">The total employee share based compensation cost that has been
recognized in results of operations for the six months and three months ended
October 31, 2008 was $25,743 and $12,124, respectively.  As of October 31, 2008,
there was $128,749 unrecognized compensation cost related to employee share
based compensation arrangements.  The cost is expected to be recognized over a
weighted average period of 2.69 years.</font><p>
<font size="2">The total nonemployee consulting share based compensation cost
that has been recognized in the results of operations was $182,353 for the six
months and $97,380 for the three months ended October 31, 2008.  As of October
31, 2008 there was $754,848 unrecognized compensation related to nonemployee
consulting share based compensation arrangements. The cost is expected to be
recognized over a weighted average period of 2.21
years.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">7&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>(5) <u>PROVISION FOR INCOME TAXES</u></b></font><p>
<font size="2">Deferred income taxes are determined using the liability method
for the temporary differences between the financial reporting basis and income
tax basis of the Company&#8217;&#8217;s assets and liabilities. Deferred income
taxes are measured based on the tax rates expected to be in effect when the
temporary differences are included in the Company&#8217;&#8217;s consolidated
tax return. Deferred tax assets and liabilities are recognized based on
anticipated future tax consequences attributable to differences between
financial statement carrying amounts of assets and liabilities and their
respective tax bases.</font><p>
<font size="2">At October 31, 2008 and 2007, deferred tax assets consist of the
following:  </font></p>
<div style="position:relative; left: 35"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">  &nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>2008</u></font></p align="center">
</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>2007</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Deferred tax asset </font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,613,700&nbsp;</font></p align="right">
</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,534,700&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="271.999932" colspan="1" rowspan="1" >
&nbsp;Less:  valuation allowance	</td>
<td width="85.333312" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2,613,700)</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2,534,700) </font></p>
</td>
</tr>
<tr valign="top">
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Net deferred tax asset</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">--0--&nbsp;&nbsp;</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="9.333331" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">--0--&nbsp;&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">At October 31, 2008 and 2007, the Company had federal net
operating loss carryforwards in the approximate amounts of $7,467,619 and
$7,241,240 available to offset future taxable income subject to Section 382
analysis limitations.  The Company established valuation allowances equal to the
full amount of the deferred tax assets due to the uncertainty of the utilization
of the operating losses in future periods. </font><p>
<font size="2"><b>(6) <u>RELATED PARTY TRANSACTIONS</u></b></font><p>
<font size="2">The Chairman of the Company participates in conducting and
providing the Company&#8217;&#8217;s Personalized Oncology services.  During the
six months and three months ended October 31, 2008, the Company paid
compensation to the Chairman for these services which are provided in the
ordinary course of business.  The Company believes the compensation is on the
same basis as if the same services were provided by unrelated parties.   The
Chairman of the Company is a director of Alfacell Corporation and a former
director of ImClone Systems, Incorporated, companies which have entered into
contracts for the Company to perform services.  During the six months and three
months ended October 31, 2008, the Company recorded revenue of $77,091 and
$12,345 from Alfacell Corporation.  During the six months and three months ended
October 31, 2008, the Company recorded revenue of $62,843 and had deferred
revenue of $135,607 from ImClone Systems, Incorporated.  All services provided
under these contracts are in the ordinary course of business at prices and on
terms and conditions that the Company believes are the same as those that would
result from arm&#8217;&#8217;s length negotiations between unrelated
parties.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">8&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>Item 2.    &nbsp;Management&#8217;&#8217;s Discussion and
Analysis of Financial Condition and Results of Operations.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this
Quarterly Report 10--Q, "Champions Biotechnology," "Champions," "we," "ours,"
and "us" refer to Champions Biotechnology, Inc., except where the context
otherwise requires or as otherwise indicated.</font></p align="center">
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<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2">DISCLOSURE REGARDING FORWARD--LOOKING
STATEMENTS</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document contains
"forward--looking statements" within the meaning of Section 27A of the
Securities Act of 1933 ("Securities Act") and Section 21E of the Securities
Exchange Act of 1934 ("Exchanges Act") that inherently involve risk and
uncertainties.  The Company generally uses words such as "believe," "may,"
"could," "will," "intend," "estimate," "expect," "anticipate," "plan," "likely,"
"promise" and similar expressions to identify forward--looking statements.  One
should not place undue reliance on these forward--looking statements.  The
Company&#8217;&#8217;s actual results could differ materially from those
anticipated in the forward--looking statements for many unforeseen factors,
which may include, but are not limited to, changes in general economic
conditions, the ongoing threat of terrorism, ability to have access to financing
sources on reasonable terms and other risks. Those risks include, but are not
limited to, the risks identified in our periodic reports filed with the
Securities and Exchange Commission, including our most recent Annual Report on
form 10--KSB.  Although the Company believes the expectations reflected in the
forward--looking statements are reasonable, they relate only to events as of the
date on which the statements are made, and the Company&#8217;&#8217;s future
results, levels of activity, performance or achievements may not meet these
expectations.  The Company does not intend to update any of the forward--looking
statements after the date of this document to conform these statements to actual
results or to changes in the Company&#8217;&#8217;s expectations, except as
required by law.</font><p>
<font size="2"><b>OVERVIEW</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is engaged
in the development of advanced preclinical platforms and predictive tumor
specific data to enhance and accelerate the value of oncology drugs.  Our
Preclinical Platform is a novel approach based upon the implantation of primary
human tumor fragments in immune deficient mice followed by propagation of the
resulting engraftments (Biomerk Tumorgrafts&#8482;) in a manner that preserves
the biological characteristics of the original human tumor.  We believe that
Biomerk Tumorgrafts closely reflect human cancer biology and their response to
drugs is more predictive of clinical outcomes in cancer patients.  The Company
is building its Biomerk Tumorgraft platform through the procurement, development
and characterization of numerous Tumorgrafts within each of several cancer
types.  Tumorgrafts are procured through agreements with a growing number of
institutions in the United States and Europe and developed and tested through
agreement with a U.S. based preclinical facility.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are leveraging our
preclinical platform to evaluate oncology drug candidates and to develop a
portfolio of novel or reposition drug candidates through pre--clinical or early
clinical trials.  As drugs progress through this early stage of development, the
Company plans to sell, partner or license them to pharmaceutical and/or
biotechnology companies, as appropriate.  We believe this strategy will enable
us to leverage the competencies of these partners or licensees to maximize our
return on investment in a time frame that is shorter than for traditional drug
development.&nbsp; We believe that this model is unlike that of many new
biotechnology companies that look to bring the process of drug development
through all phases of discovery, development, regulatory approvals, and
marketing, which requires a very large financial commitment and a long
development period, typically more than a decade, to commercialize.  Thus far we
have acquired two oncology drug candidates and we have begun preclinical
development of the most promising candidate, SG410, through the use of contract
facilities.&nbsp; We have secured preclinical supply of SG410 drug substance and
it is our intention to develop a soluble form of the compound and evaluate its
efficacy in Biomerk Tumorgrafts from several cancer types.  If results are
promising it is our intention to continue preclinical development and then sell,
partner or license SG410 for its remaining clinical development.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also offer our
Biomerk Tumorgraft predictive preclinical platform and tumor specific data to
physicians to provide information that may enhance personalized patient care
options and to companies for evaluation of oncology drugs in a platform that
integrates predictive testing with biomarker discovery.&nbsp; We provide
Personalized Oncology services to physicians in the field of oncology by
establishing and administering expert medical information panels for their
patients to (i) arrange for testing, analysis and study of cancer tissues, as
appropriate, (ii) analyze medical records and test results, and (iii) assist in
understanding conventional and research options.  The Company also develops and
performs testing on Personalized Tumorgrafts to provide patients&#8217;&#8217;
physicians personalized data on treatment drug options.  In FY08 the Company
generated all its revenue from its growing Personalized Oncology services while
it continued development of its Biomerk Tumorgraft platform.
</font></p align="center">
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<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">9&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In late fiscal year
2008, as we expanded our number of Biomerk Tumorgraft models, we began to offer
leading pharmaceutical and biotechnology companies the benefits of our Biomerk
Tumorgrafts for their preclinical evaluation programs.  We provide Preclinical
eValuation services that we believe are more predictive of clinical outcomes and
that might provide for a faster and less expensive path for drug approval.
&nbsp;These services utilize Biomerk Tumorgrafts to evaluate tumor
sensitivity/resistance to various single and combination standard and novel
chemotherapy agents.  The Preclinical eValuation services we offer also include
biomarker discovery and the identification of novel drug combinations.  In the
fourth quarter of fiscal year 2008 we established an agreement with ImClone
Systems Incorporated for the preclinical evaluation of certain therapeutic
antibodies in ImClone&#8217;&#8217;s clinical development pipeline. As part of
the agreement, ImClone will utilize our Biomerk Tumorgrafts in the initial
preclinical evaluation.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Once we enter into an
agreement with a pharmaceutical or biotechnology company to perform Biomerk
Tumorgraft testing services it takes several months to propagate the Tumorgrafts
prior to beginning the drug testing.  In the second quarter of fiscal 2009 we
performed drug testing under several contracts.  We are currently providing
services or in discussions to provide services to a number of other
companies.</font><p>
<font size="2"><b>RESULTS OF  OPERATIONS</b></font><p>
<font size="2">We began our operations as a biotechnology company after we
acquired Biomerk, Inc. in May 2007.  Accordingly, &#8217;the results described
below for the 2007 period are for less than a full six months.</font><p>
<font size="2"><b><u>Three Months Ended October 31, 2008 and
2007</u></b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Revenues</i><b>.&nbsp;&nbsp;</b>For
the three months ended October 31, 2008, the Company&#8217;&#8217;s operating
revenue was $1,044,172, compared to $0.00 for the comparable three months ended
October 31, 2007, an increase of $1,044,172.  For the 2008 period, we primarily
derived our revenue from our Personalized Oncology business and, to a lesser
extent, our Preclinical eValuation business.  We began to generate revenue from
our Preclinical eValuation business in the first quarter of fiscal 2009 and grew
it in the second quarter as we completed portions of studies for our contractual
customers during the quarter; those studies and others continue or are in
progress.  Expectations for growth in the future are from continued Personalized
Oncology services and use of our Preclinical eValuation services. Our revenue is
described as Personalized Oncology and Preclinical Contract revenue in the
Condensed Consolidated Statements of Operations.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At October 31, 2008, we
had deferred revenue of $461,838 which represents payments in advance on future
Personalized Oncology services and Preclinical eValuation services which will be
recognized as earned when operations are performed.  At October 31, 2007, we had
no deferred revenue.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Expenses</i><b>.</b>&nbsp;&nbsp;For
the three months ended October 31, 2008, our operating expenses were $1,300,875,
compared to $150,198 for the three months ended October 31, 2007, an increase of
766%. </font><ul>
<li><font size="2"><u>Research and development expenses</u>.  For the three
months ended October 31, 2008, research and development expenses were $419,404,
compared to $30,910 for the three months ended October 31, 2007.  The increase
of $388,494 for the three months ended October 31, 2008 was primarily a result
of the increase in Tumorgrafts acquired and their propagation, characterization
and development for utilization in preclinical studies.  Increases also resulted
from development activities directed toward building our drug pipeline and
evaluating synergistic technologies as well as preclinical development expenses
for the Company&#8217;&#8217;s lead oncology drug candidate,
SG410.</font></li></ul><p>
<ul>
<li><font size="2"><u>Cost of personalized oncology and preclinical contract
services</u>.  For the three months ended October 31, 2008, the costs of
personalized oncology and preclinical contract services were $458,586, compared
to $0.00 for the corresponding 2007 period, an increase of $458,586.  These
costs were primarily for conducting the Company&#8217;&#8217;s personalized
oncology services, including medical information panels and the development and
testing of personalized Tumorgrafts, but also include costs related to
preclinical evaluation studies in progress under contract.</font></li></ul><p>
<ul>
<li><font size="2"><u>General and administrative expenses</u>.  For the three
months ended October 31, 2008, general and administrative expenses were
$422,885, compared to $119,288 for the three months ended October 31, 2007, an
increase of 255%.  The $422,885 expenses for the 2008 period include $187,347 of
payroll and employee--related expenses and $96,263 of consultant services and
related options expenses.  Our expenses increased as we built and grew our
infrastructure including the addition of personnel, consultants and other
initiatives to facilitate current and future growth.</font></li></ul><p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">10</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses are expected
to increase in the future, commensurate with our increased levels of activity
and growth, including our increasing business development efforts in pursuing
prospective drug candidates to add to the Company&#8217;&#8217;s pipeline and
synergistic technologies.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Net
Loss</i><b>.&nbsp;&nbsp;</b>Our<b> </b>net loss for the three months ended
October 31, 2008 was $231,590, and our net loss for the three months ended
October 31, 2007 was $145,563, an increase of 59%.  As explained in the above
analysis of our revenues and expenses, the primary reason for our increased loss
in the 2008 quarter was our increased investments to grow our preclinical
platform, increase revenues from our Personalized Oncology and Preclinical
eValuation businesses, grow our drug pipeline and continue preclinical
development of our oncology drug candidate, SG410.</font><p>
<font size="2"><b><u>Six Months Ended October 31, 2008 and
2007</u></b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Revenues</i><b>.&nbsp;&nbsp;</b>For
the six months ended October 31, 2008, the Company&#8217;&#8217;s operating
revenue was $1,717,289 compared to $250,000 for the comparable six months ended
October 31, 2007, an increase of $1,467,289 or 587%.  For the 2008 period, we
primarily derived our revenue from our Personalized Oncology business and, to a
lesser extent, our Preclinical eValuation business.  We began to generate
revenue from our Preclinical eValuation business in the first quarter of fiscal
2009 and grew revenue in the second quarter.  Expectations for growth in the
future are from continued Personalized Oncology services and use of our
Preclinical eValuation services. Our revenue is described as Personalized
Oncology and Preclinical Contract revenue in the Condensed Consolidated
Statements of Operations.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At October 31, 2008, we
had deferred revenue of $461,838 which represents payments in advance on future
Personalized Oncology services and Preclinical eValuation services which will be
recognized as earned when operations are performed.  At October 31, 2007, we had
no deferred revenue.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Expenses</i><b>.</b>
For the six months ended October 31, 2008, our operating expenses were
$2,162,190, compared to $396,989 for the six months ended October 31, 2007, an
increase of 1,765,201 or 445%. </font><ul>
<li><font size="2"><u>Research and development expenses</u>.&nbsp;&nbsp;For the
six months ended October 31, 2008, research and development expenses were
$636,567, compared to $105,910 for the corresponding 2007 period.  The increase
of $530,657 for the six months ended October 31, 2008 was primarily a result of
the increase in Tumorgrafts acquired and their propagation, characterization and
development for utilization in preclinical studies.  Increases also resulted
from development activities directed toward building our drug pipeline and
evaluating synergistic technologies as well as preclinical development expenses
for the Company&#8217;&#8217;s lead oncology drug candidate,
SG410.</font></li></ul><p>
<ul>
<li><font size="2"><u>Cost of personalized oncology and preclinical contract
services</u>.&nbsp;&nbsp;For the six months ended October 31, 2008, the costs of
personalized oncology and preclinical contract services were $718,186, compared
to $63,039 for the six months ended October 31, 2007, an increase of $655,147 or
1039%.  These costs were primarily for conducting the Company&#8217;&#8217;s
personalized oncology services, including medical information panels and the
development and testing of personalized tumorgrafts, but also include costs
related to preclinical evaluation studies in progress under
contract.</font></li></ul><p>
<ul>
<li><font size="2"><u>General and administrative expenses</u>.&nbsp;&nbsp;For
the six months ended October 31, 2008, general and administrative expenses were
$807,437, compared to $228,040 for the six months ended October 31, 2007, an
increase of $579,397 or 254%.  The $807,437 expenses for the six months ended
October 31, 2008 include $383,634 of payroll and employee--related expenses and
$190,564 of consultant services and related options expenses.  Our expenses
increased as we built and  grew our infrastructure including the addition of
personnel, consultants and other initiatives to facilitate current and future
growth.</font></li></ul><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses are expected
to increase in the future, commensurate with our increased levels of activity
and growth, including our increasing efforts in pursuing attractive prospective
drug candidates and technologies.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Net
Loss</i><b>.&nbsp;&nbsp;</b>Our net loss for the six months ended October 31,
2008 was $399,072, and our net loss for the six months ended October 31, 2007
was $136,995, an increase of 262,077 or 191%.  As explained in the above
analysis of our revenues and expenses, the primary reason for our increased loss
in the 2008 period was our increased investments to grow our preclinical
platform, increase revenues from our Personalized Oncology and Preclinical
eValuation businesses, grow our drug pipeline and continue preclinical
development of our oncology drug candidate, SG410.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">11</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>FINANCIAL CONDITION AND LIQUIDITY</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#8217;&#8217;s cash position on October 31, 2008, was $3,052,558
compared to $365,916 on October 31, 2007.  For the six months ended October 31,
2008, the net cash used by operating activities was $664,021. For the six months
ended October 31, 2007, the net cash used by operating activities was
$65,526.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our working capital as
of October 31, 2008 was $2,555,599 compared to negative $28,427 at October 31,
2007. The increased working capital was due to the receipt of proceeds of
$2,500,000 from private investment financing in March 2008 and the receipt of
payments in advance on future operations as deferred revenue. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has
sufficient resources to provide for the next twelve months of operations based
on its current level of expenditure, its anticipated level of future expenditure
and revenue growth and its ability to curtail expenditures if needed.</font><p>
<font size="2"><i>Critical Accounting Policies</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the notes to our
most recent Annual Report on Form 10--KSB, we discussed the accounting policies
that are considered to be significant in determining the results of operations
and our financial position.  We believe that the accounting principles utilized
by us conform to accounting principles generally accepted in the United States
of America.</font><p>
<font size="2"><b>Item 3.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Quantitative and
Qualitative Disclosures About Market Risk</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font><p>
<font size="2"><b>Item 4.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Controls and
Procedures</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We maintain a system of
disclosure controls and procedures that is designed to provide reasonable
assurance that information, which is required to be disclosed by us in the
reports that we file or submit under the Securities and Exchange Act of 1934, as
amended, is recorded, processed, summarized and reported within the time periods
specified in the rules and forms of the Securities and Exchange Commission, and
is accumulated and communicated to management in a timely manner.  Our Principal
Executive Officer and Acting Chief Financial Officer have evaluated this system
of disclosure controls and procedures as of the end of the period covered by
this quarterly report, and have concluded that the system is not effective.
There have been no changes in our internal control over financial reporting
during the most recent fiscal quarter that have materially affected, or are
reasonably likely to materially affect, our internal control over financial
reporting.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">12</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>PART II--OTHER</b>
<b>INFORMATION</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>Item 1.</b>    &nbsp;<b>Legal Proceedings.</b></font><p>
<font size="2">None</font><p>
<font size="2"><b>Item 2.</b>    &nbsp;<b>Unregistered Sales of Equity
Securities and Use of Proceeds.</b></font><p>
<font size="2">None</font><p>
<font size="2"><b>Item 3.</b>    <b>&nbsp;Defaults Upon Senior
Securities.</b></font><p>
<font size="2">None</font><p>
<font size="2"><b>Item 4.</b>    &nbsp;<b>Submission of Matters to a Vote of
Security Holders.</b></font><p>
<font size="2">None</font><p>
<font size="2"><b>Item 5.</b>    &nbsp;<b>Other Information</b></font><p>
<font size="2">None</font><p>
<font size="2"><b>Item 6</b>.    &nbsp;<b>Exhibits</b></font><p>
<font size="2"><u>Exhibit No.</u></font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="51.999987" colspan="1" rowspan="1" >
<p>
<font size="2">31.1</font></p>
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">Rule 13a--14(a)/15d--14(a) Certification of Chief Executive
Officer</font></p>
</td>
</tr>
<tr valign="top">
<td width="51.999987" colspan="1" rowspan="1" >
<p>
<font size="2">31.2</font></p>
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">Rule 13a--14(a)/15d--14(a) Certification of Chief Financial
Officer</font></p>
</td>
</tr>
<tr valign="top">
<td width="51.999987" colspan="1" rowspan="1" >
<p>
<font size="2">32.1</font></p>
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">Section 1350 Certifications</font></p>
</td>
</tr>
<tr valign="top">
<td width="51.999987" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="577.333189" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">13</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>SIGNATURES</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.	<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="250.666604" colspan="2" rowspan="1" >
<p>
<font size="2">CHAMPIONS BIOTECHNOLOGY, INC.</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="250.666604" colspan="2" rowspan="1" >
<p>
<font size="2">(Registrant)</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210.666614" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210.666614" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2">Date: December 15, 2008</font></p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p>
<font size="2"><u>/s/ Douglas D. Burkett</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D. Burkett</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p>
<font size="2">Principal Executive Officer</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210.666614" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="210.666614" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p>
<font size="2"><u>/s/ Durwood C. Settles</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p>
<font size="2">Durwood C. Settles</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p>
<font size="2">Acting Chief Financial Officer</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">14</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p>
</p align="right">
<div align="right" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="right">
<a name="_DV_M234"></a><font size="2"><b><u>Exhibit
31.1</u></b></font></p align="right">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<a name="_DV_M235"></a><font size="2">CERTIFICATION</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<a name="_DV_M236"></a><a name="_DV_M237"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I,
Douglas D. Burkett, certify that:</font><p>
<a name="_DV_M238"></a><a name="_DV_M239"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10--Q of
Champions Biotechnology, Inc., a Delaware corporation:</font><p>
<a name="_DV_M240"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
Based on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;</font><p>
<a name="_DV_M241"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
Based on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the Registrant as of, and
for, the periods presented in this report;</font><p>
<a name="_DV_M242"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
The Registrant&#8217;&#8217;s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a--15(e) and 15d--15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a--15(f) and 15d--15(f))
for the Registrant and have:</font><p>
<a name="_DV_M243"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
&nbsp;Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principals;</font><p>
<a name="_DV_M244"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
&nbsp;Evaluated the effectiveness of the Registrant&#8217;&#8217;s disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</font><p>
<a name="_DV_M245"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
&nbsp;Disclosed in this report any change in the Registrant&#8217;&#8217;s
internal control over financial reporting that occurred during the
Registrant&#8217;&#8217;s most recent fiscal quarter (the
Registrant&#8217;&#8217;s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
Registrant&#8217;&#8217;s internal control over financial reporting;
and</font><p>
<a name="_DV_M246"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.
The Registrant&#8217;&#8217;s other certifying officer and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the Registrant&#8217;&#8217;s auditors and the audit committee of
Registrant&#8217;&#8217;s board of directors (or persons performing the
equivalent function):</font><p>
<a name="_DV_M247"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
&nbsp;All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the Registrant&#8217;&#8217;s ability to record,
process, summarize and report financial information; and</font><p>
<a name="_DV_M248"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;Any fraud, whether or not material, that involves management or other
employees who have a significant role in the Registrant&#8217;&#8217;s internal
control over financial reporting.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="446.666555" colspan="1" rowspan="1" >
<p>
<a name="_DV_M249"></a><font size="2">Date: December 15, 2008</font></p>
</td>
<td width="183.999954" colspan="1" rowspan="1" >
<p>
<font size="2"><u>/s/ Douglas D. Burkett</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="446.666555" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="183.999954" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D. Burkett</font></p>
</td>
</tr>
<tr valign="top">
<td width="446.666555" colspan="1" rowspan="1" >
<p>
<a name="_DV_M251"></a><font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="183.999954" colspan="1" rowspan="1" >
<p>
<font size="2">Principal Executive Officer</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<a name="_DV_M252"></a><font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="right">
<div align="right" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="right">
<font size="2"><b><u>Exhibit 31.2</u></b></font></p align="right">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<a name="_DV_M253"></a><font size="2">CERTIFICATION</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<a name="_DV_M254"></a><a name="_DV_M255"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I,
Durwood C. Settles, certify that:</font><p>
<a name="_DV_M256"></a><a name="_DV_M257"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
have reviewed this Quarterly Report on Form 10--Q of Champions Biotechnology,
Inc., a Delaware corporation:</font><p>
<a name="_DV_M258"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, this report does not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading
with respect to the period covered by this report;</font><p>
<a name="_DV_M259"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the Registrant as of, and
for, the periods presented in this report;</font><p>
<a name="_DV_M260"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant&#8217;&#8217;s other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a--15(e) and 15d--15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a--15(f) and 15d--15(f))
for the Registrant and have: </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
&nbsp;Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;Designed such internal control over financial reporting, or caused such
internal control over financial reporting to be designed under our supervision,
to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principals;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
&nbsp;Evaluated the effectiveness of the Registrant&#8217;&#8217;s disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
&nbsp;Disclosed in this report any change in the Registrant&#8217;&#8217;s
internal control over financial reporting that occurred during the
Registrant&#8217;&#8217;s most recent fiscal quarter (the
Registrant&#8217;&#8217;s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the
Registrant&#8217;&#8217;s internal control over financial reporting;
and</font><p>
<a name="_DV_M264"></a><font size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Registrant&#8217;&#8217;s other certifying officer and I have disclosed, based
on our most recent evaluation of internal control over financial reporting, to
the Registrant&#8217;&#8217;s auditors and the audit committee of
Registrant&#8217;&#8217;s board of directors (or persons performing the
equivalent function):</font><p>
<a name="_DV_M265"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
&nbsp;All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the Registrant&#8217;&#8217;s ability to record,
process, summarize and report financial information; and</font><p>
<a name="_DV_M266"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;Any fraud, whether or not material, that involves management or other
employees who have a significant role in the Registrant&#8217;&#8217;s internal
control over financial reporting.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="446.666555" colspan="1" rowspan="1" >
<p>
<a name="_DV_M267"></a><font size="2">Date: December 15, 2008</font></p>
</td>
<td width="183.999954" colspan="1" rowspan="1" >
<p>
<font size="2"><u>/s/ Durwood C. Settles</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="446.666555" colspan="1" rowspan="1" >
<p>
<a name="_DV_M268"></a><font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="183.999954" colspan="1" rowspan="1" >
<p>
<font size="2">Durwood C. Settles</font></p>
</td>
</tr>
<tr valign="top">
<td width="446.666555" colspan="1" rowspan="1" >
<p>
<a name="_DV_M269"></a><font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="183.999954" colspan="1" rowspan="1" >
<p>
<font size="2">Acting Chief Financial Officer</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="right">
<div align="right" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="right">
<a name="_DV_M270"></a><font size="2"><b><u>Exhibit
32.1</u></b></font></p align="right">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<a name="_DV_M271"></a><font size="2">SECTION 1350
CERTIFICATIONS</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<a name="_DV_M272"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the Quarterly Report of Champions Biotechnology, Inc. (the
&#8220;&#8220;Company&#8221;&#8220;) on Form 10--Q for the period ending October
31, 2008 as filed with the Securities and Exchange Commission and to which this
Certification is an exhibit (the &#8220;&#8220;Report&#8221;&#8220;), the
undersigned hereby certify, pursuant to Section 906 of the Sarbanes--Oxley Act
of 2002, that:</font><p>
<a name="_DV_M273"></a><font size="2">The Report fully complies with the
requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934;
and</font><p>
<a name="_DV_M274"></a><font size="2">The information contained in the Report
fairly presents, in all material respects, the financial condition and result of
operations of the Company for the periods reflected therein.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="426.666560" colspan="1" rowspan="1" >
<p>
<a name="_DV_M275"></a><font size="2">Date: December 15, 2008</font></p>
</td>
<td width="203.999949" colspan="1" rowspan="1" >
<p>
<font size="2"><u>/s/ Douglas D. Burkett</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="426.666560" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="203.999949" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D. Burkett</font></p>
</td>
</tr>
<tr valign="top">
<td width="426.666560" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="203.999949" colspan="1" rowspan="1" >
<p>
<font size="2">Principal Executive Officer</font></p>
</td>
</tr>
<tr valign="top">
<td width="426.666560" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="203.999949" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="426.666560" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="203.999949" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="426.666560" colspan="1" rowspan="1" >
<p>
<a name="_DV_M278"></a><font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="203.999949" colspan="1" rowspan="1" >
<p>
<font size="2"><u>/s/ Durwood C. Settles</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="426.666560" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="203.999949" colspan="1" rowspan="1" >
<p>
<font size="2">Durwood C. Settles</font></p>
</td>
</tr>
<tr valign="top">
<td width="426.666560" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="203.999949" colspan="1" rowspan="1" >
<p>
<font size="2">Acting Chief Financial Officer</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>


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