<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>7
<FILENAME>ex991form8k052604.txt
<DESCRIPTION>COMPANY CLOSES $3 MILLION PRIVATE PLACEMENT
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Exhibit No. 99.1
Form 8-K
Synthetic Blood International, Inc.
File No. 2-31909


Contact:
Synthetic Blood International, Inc.
Joan Mahan 714-427-6363 or 800-809-6054

               SYNTHETIC BLOOD CLOSES $3 MILLION PRIVATE PLACEMENT

Costa Mesa, CA - May 26, 2004 - Synthetic Blood International, Inc. -
(OTC.BB:SYBD) - a company pursuing development of medical products based on
perfluorocarbon and other technologies, including Oxycyte(TM) synthetic blood
substitute, announced today that it closed a private placement to overseas
investors. Synthetic Blood sold 10,000,000 A Units at $0.30 per A Unit or gross
proceeds of $3 million. Each A Unit consists of one share of common stock and
one Series A Warrant to purchase a share of common stock at $0.47 per share over
a term of five years. Synthetic Blood also sold 100,000 B Units for $0.30 per B
Unit or gross proceeds of $30,000. Each B Unit consists of Series B Warrants to
purchase 34 shares of common stock at a price of $0.60 per share that expire
three months following registration of the shares issuable on exercise of the
warrants for resale, and Series C Warrants to purchase 34 shares of common stock
at $0.60 per share over a term of five years. Net proceeds of the offering after
placement fees and expenses are approximately $2.6 million.

The private placement was made only to overseas investors in reliance on
Regulation S adopted under of the Securities Act of 1933, as amended (the
"Securities Act"). The shares of common stock sold have not been registered
under the Securities Act, or any state securities laws, and unless so
registered, may not be offered or sold in the United States absent registration
or an applicable exemption from the registration requirements of the Securities
Act and applicable state securities laws. Synthetic Blood has agreed to file a
registration statement under the Securities Act for resale of the common stock
purchased by the investors in the private placement, and the common stock
issuable on exercise of the Series A Warrants, Series B Warrants, and Series C
Warrants.

"The money we obtained through the offering enables us to pursue the clinical
trial program with Oxycyte," said Robert Nicora, SYBD President. "We sold
warrants in the offering, one series with a short exercise window, and the other
two series callable under certain circumstances related to market price. This
offering gives us the opportunity to obtain additional funding over the next
year or two, up to an additional $8.78 million if all warrants are exercised,
providing capital at the appropriate time to move Oxycyte forward."

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"The money will be used to fund Phase II Oxycte clinical trials, which are
expected to start in the next month or two. Smaller Phase IIA trials in
orthopedic and cardiac surgery patients will be followed by larger Phase IIB
trials in preparation for pivotal Phase III trials. If the results from the
Phase II trials are positive, Phase III testing could start in the latter part
of 2005," said Nicora.

In addition to Oxycyte, SYBD is also developing Fluorovent(TM), a liquid
ventilation product that may be useful in treating respiratory disorders in
adults and children. The company is also developing an implantable glucose
biosensor for the continuous monitoring of blood glucose levels in diabetics.
This press release does not constitute an offer to sell, or the solicitation of
an offer to buy, any securities. The company is traded under the symbol SYBD on
the OTC Electronic Bulletin Board. SYBD is headquartered in Costa Mesa,
California. The Company's website is www.sybd.com.

Safe Harbor Statement The Private Securities Litigation Reform Act of 1995
provides a safe harbor for forward-looking information made on the Company's
behalf. All statements, other than statements of historical facts which address
the Company's expectations of sources of capital or which express the Company's
expectation for the future with respect to financial performance or operating
strategies, can be identified as forward-looking statements. Such statements
made by the Company are based on knowledge of the environment in which it
operates, but because of the factors previously listed, as well as other factors
beyond the control of the Company, actual results may differ materially from the
expectations expressed in the forward-looking statements.





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