<SEC-DOCUMENT>0000912057-01-525735.txt : 20011018
<SEC-HEADER>0000912057-01-525735.hdr.sgml : 20011018
ACCESSION NUMBER:		0000912057-01-525735
CONFORMED SUBMISSION TYPE:	PRE 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20011029
FILED AS OF DATE:		20010730

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AETHLON MEDICAL INC
		CENTRAL INDEX KEY:			0000882291
		STANDARD INDUSTRIAL CLASSIFICATION:	LABORATORY ANALYTICAL INSTRUMENTS [3826]
		IRS NUMBER:				133632859
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		PRE 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21846
		FILM NUMBER:		1692599

	BUSINESS ADDRESS:	
		STREET 1:		7825 FAY AVENUE SUITE 200
		CITY:			LAJOLLA
		STATE:			CA
		ZIP:			92037
		BUSINESS PHONE:		2129120930

	MAIL ADDRESS:	
		STREET 1:		7825 FAY AVENUE SUITE 200
		CITY:			LAJOLLA
		STATE:			CA
		ZIP:			92037

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BISHOP EQUITIES INC
		DATE OF NAME CHANGE:	19930602
</SEC-HEADER>
<DOCUMENT>
<TYPE>PRE 14A
<SEQUENCE>1
<FILENAME>a2055303zpre14a.htm
<DESCRIPTION>PRE 14A
<TEXT>
<HTML>
<HEAD>
<TITLE> Prepared by MERRILL CORPORATION
</TITLE>
</HEAD>
<BODY BGCOLOR="#FFFFFF" LINK=BLUE  VLINK=PURPLE>
<BR>
<FONT SIZE=3 ><A HREF="#01MOC1721_1">QuickLinks</A></FONT>
<font size=3> -- Click here to rapidly navigate through this document</font>
<P ALIGN="CENTER"><FONT SIZE=2><B>SCHEDULE 14A INFORMATION</B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>Proxy
Statement Pursuant to Section 14(a) of<BR>
the Securities Exchange Act of 1934 (Amendment No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;) </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="80%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TD COLSPAN=3 VALIGN="TOP"><FONT SIZE=2>Filed by the Registrant /x/<BR></FONT>
</TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2>Filed by a Party other than the Registrant /&nbsp;/</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=3><FONT SIZE=2><BR>
Check the appropriate box:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/x/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>Preliminary Proxy Statement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/&nbsp;/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2><B>Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/&nbsp;/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>Definitive Proxy Statement</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/&nbsp;/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>Definitive Additional Materials</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/&nbsp;/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="94%"><FONT SIZE=2>Soliciting Material Pursuant to &sect;240.14a-12<BR></FONT>
</TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="84%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><BR><FONT SIZE=2><B>Aethlon Medical, Inc.</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> (Name of Registrant as Specified In Its Charter)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><BR><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5 ALIGN="CENTER"><HR NOSHADE><FONT SIZE=2> (Name of Person(s) Filing Proxy Statement, if other than the Registrant)</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>&nbsp;</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD COLSPAN=5><FONT SIZE=2>Payment of Filing Fee (Check the appropriate box):</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/x/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>No fee required</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/&nbsp;/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and&nbsp;0-11</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Title of each class of securities to which transaction applies:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(2)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Aggregate number of securities to which transaction applies:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(3)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(4)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Proposed maximum aggregate value of transaction:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(5)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Total fee paid:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/&nbsp;/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Fee paid previously with preliminary materials.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>/&nbsp;/</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=3><FONT SIZE=2>Check box if any part of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement
number, or the Form or Schedule and the date of its filing.</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(1)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Amount Previously Paid:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(2)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Form, Schedule or Registration Statement No.:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(3)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Filing Party:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="4%"><FONT SIZE=2>(4)</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="89%"><FONT SIZE=2>Date Filed:<BR>
&nbsp;&nbsp;&nbsp;&nbsp;</FONT><HR NOSHADE></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=1,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=857085,FOLIO='blank',FILE='DISK015:[01MOC1.01MOC1721]BA1721A.;2',USER='JHILL',CD='30-JUL-2001;11:46' -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><B>AETHLON MEDICAL,&nbsp;INC.<BR>
7825 FAY AVENUE, LA JOLLA, CALIFORNIA 92037  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="be1721_notice_of_meeting_of_shareholders"> </A>
<A NAME="toc_be1721_1"> </A></FONT> <FONT SIZE=2><B>NOTICE OF MEETING OF SHAREHOLDERS    <BR>  </B></FONT></P>

<P ALIGN="RIGHT"><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;September&nbsp;21, 2001 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Annual Meeting of Shareholders of Aethlon Medical,&nbsp;Inc. will be held at the offices of the corporation at 7825 Fay Avenue, Suite 200, La Jolla, California 92037, telephone
number (858)&nbsp;456-5777, on Monday, October&nbsp;29, 2001 at 10:00&nbsp;a.m. to consider and take action upon the following matters: </FONT></P>

<UL>
<DL compact>
<DT><FONT SIZE=2>1.</FONT></DT><DD><FONT SIZE=2>Election
of Directors,
<BR><BR></FONT></DD><DT><FONT SIZE=2>2.</FONT></DT><DD><FONT SIZE=2>Ratification
of the selection of Squar, Milner, Reehl&nbsp;&amp; Williamson LLP, independent certified public accountants, as auditors for the corporation, and
<BR><BR></FONT></DD><DT><FONT SIZE=2>3.</FONT></DT><DD><FONT SIZE=2>Transaction
of such other business as may properly come before the meeting. </FONT></DD></DL>
</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All
persons who were holders of record of common shares at the close of business on September&nbsp;14, 2001, and no others shall be entitled to vote at such meeting. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="TOP">
<TD WIDTH="49%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="49%"><FONT SIZE=2>James A. Joyce<BR>
Secretary</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT
SIZE=2><B>SHAREHOLDERS ARE URGED TO VOTE BY SIGNING, DATING, AND RETURNING THE ENCLOSED PROXY IN THE ENCLOSED ENVELOPE TO WHICH NO POSTAGE NEED BE AFFIXED IF MAILED IN
THE UNITED STATES.</B></FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=2,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=293293,FOLIO='blank',FILE='DISK015:[01MOC1.01MOC1721]BE1721A.;3',USER='JHILL',CD='30-JUL-2001;11:46' -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_de1721_1_1"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1721_proxy_#160;statement"> </A>
<A NAME="de1721_aethlon_medical,_inc._proxy_statement"> </A>
<A NAME="toc_de1721_1"> </A>
<BR></FONT><FONT SIZE=2><B>AETHLON MEDICAL, INC.<BR>  <BR>    PROXY STATEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;This statement is furnished in connection with the solicitation by the Board of Directors of Aethlon Medical,&nbsp;Inc. (hereinafter referred to as the
Company) of proxies to be used at the Annual Meeting of Shareholders to be held on October&nbsp;29, 2001 (the "Meeting"). </FONT></P>

<P><FONT SIZE=2><B>Record Date  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The record date for the Meeting is September&nbsp;14, 2001 (the "Record Date"). Only shareholders of record at the close of business on the Record Date will
be entitled to vote at the Meeting. </FONT></P>

<P><FONT SIZE=2><B>Shareholders Entitled to Vote  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Each share of the Company's common stock, $.001 par value, ("Common Stock") outstanding at the close of business on the Record Date will be entitled to one
vote on all matters submitted to a vote at the Meeting. As of June&nbsp;30, 2001, there were 3,629,705 shares of Common Stock outstanding. Each outstanding share is entitled to one vote on each
matter properly brought before the Meeting other than the election of Directors which is by cumulative voting. </FONT></P>


<P><FONT SIZE=2><B>Quorum  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A majority of the shares entitled to vote, present in person or represented by proxy at the Meeting, shall constitute a quorum. </FONT></P>

<P><FONT SIZE=2><B>Required Vote  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Directors shall be elected by a majority of the votes of the shares of Common Stock present in person or represented by proxy at the Meeting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
proposal to ratify the appointment of auditors requires the affirmative vote of the majority of the shares of Common Stock present in person or represented by proxy at the
Meeting. </FONT></P>

<P><FONT SIZE=2><B>Proxies  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All shares entitled to vote and represented by properly executed proxies received prior to the Meeting, and not revoked, will be voted as instructed on those
proxies. If no instructions are indicated, the shares will be voted as recommended by the Board of Directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If
any other matters are properly presented at the Meeting for consideration, the persons named in the enclosed form of proxy and acting thereunder will have discretion to vote on
those matters in accordance with their own judgment to the same extent as the person signing the proxy would be entitled to vote. The Company does not anticipate that any other matters will be raised
at the Meeting. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Any
proxy may be revoked at any time before it is voted by (i)&nbsp;filing with the Secretary of the Company, at or before the taking of the vote at the Meeting, a written notice of
revocation or duly executed proxy, in either case dated later than the prior proxy relating to the same shares or (ii)&nbsp;attending the Meeting and voting in person (although attendance at the
Meeting will not of itself revoke a proxy). Any written notice of revocation or subsequent proxy should be sent so as to be delivered to Aethlon Medical,&nbsp;Inc., 7825 Fay Avenue, Suite 200, La
Jolla, California 92037, Attention: Secretary, or hand delivered to the Secretary, before the taking of the vote at the Meeting. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>1</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=3,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=838945,FOLIO='1',FILE='DISK015:[01MOC1.01MOC1721]DE1721A.;6',USER='JHILL',CD='30-JUL-2001;12:08' -->
<A NAME="page_de1721_1_2"> </A>

<P><FONT SIZE=2><B>Documents Incorporated by Reference  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company specifically incorporates the consolidated financial statements for the year ended March&nbsp;31, 2001, filed as part of the 2001 Annual Report
on Form&nbsp;10-KSB ("2001 Annual Report") in response to Item 13 of the Form&nbsp;10-KSB. The 2001 Annual Report and accompanying consolidated financial statements have
been sent simultaneously with this Proxy Statement or have been previously
provided to all stockholders entitled to vote at the Meeting. If you did not receive a copy of the 2001 Annual Report and consolidated financial statements, please contact the Company and request that
the information be sent to you. A copy of the 2001 Annual Report may be obtained from the Company without cost to the requesting Stockholder by contacting the Company. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1721_1._election_of_directors"> </A>
<A NAME="toc_de1721_2"> </A>
<BR></FONT><FONT SIZE=2><B>1.&nbsp;&nbsp;ELECTION OF DIRECTORS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A board of six directors is to be elected at the Meeting for a one-year term. Unless otherwise instructed, the proxy holders will vote the proxies
received by them FOR the Company's nominees named below. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
six nominees selected by the Board of Directors are listed on the following pages. Stockholders have cumulative voting rights when voting for Directors; accordingly, any
Stockholder may multiply the number of shares he or she is entitled to vote by the number of Directors to be elected and allocate votes among the candidates in any manner. There are no conditions
precedent to the exercise of the right to cumulate votes in the election of Directors of the Company. Stockholders may exercise such cumulative voting rights, either in person or by proxy, with or
without advance notice to the Company. The six Director nominees receiving the highest number of votes will be elected. Any Shares not voted, whether by abstention, broker non-vote, or
otherwise, have no impact on the vote. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors intends to vote proxies equally for the nominees unless otherwise instructed on the Proxy Form. If you do not wish your Shares to be voted for particular
nominees, please identify the exceptions in the designated space provided on the Proxy Form. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;If
at the time of the Meeting one or more of the nominees have become unavailable to serve, Shares represented by proxies will be voted for the remaining nominees and for any
substitute nominee or nominees designated by the Board of Directors. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Directors
elected at the Meeting will hold office until the next Annual Meeting or until their successors have been elected and qualified. For each nominee there follows a brief
listing of principal occupation for at least the past five years and other major affiliations. </FONT></P>

<UL>

<P><FONT SIZE=2><B> James A. Joyce  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;As the founder of Aethlon Medical, Mr.&nbsp;Joyce has led the efforts that have resulted in the recent acquisitions of Hemex,&nbsp;Inc., Syngen
Research,&nbsp;Inc. and Cell Activation,&nbsp;Inc. Effective June&nbsp;1, 2001, Mr.&nbsp;Joyce was appointed President and Chief Executive Officer of the Company. Since 1993, Mr.&nbsp;Joyce
was the Chief Executive Officer of James Joyce&nbsp;&amp; Associates; an organization that provided management consulting and investment banking advisory services to CEO's and CFO's of publicly traded
companies. Previously, Mr.&nbsp;Joyce was Chief Executive Officer of Mission Labs,&nbsp;Inc., and a principal in charge of U.S. operations of London Zurich Securities,&nbsp;Inc. Mr.&nbsp;Joyce
is a graduate from the University of Maryland. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Franklyn S. Barry, Jr.  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Barry has over 25&nbsp;years of experience in managing and building companies. He was President and Chief Executive Officer of Hemex from
April&nbsp;1997 through May&nbsp;31, 2001 and President and CEO of the Company from March&nbsp;10, 1999 to May&nbsp;31, 2001. He became a director of the Company on March&nbsp;10, 1999. From
1994 to April&nbsp;1997, Mr.&nbsp;Barry was a private consultant. Included among his </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>2</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=4,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=702168,FOLIO='2',FILE='DISK015:[01MOC1.01MOC1721]DE1721A.;6',USER='JHILL',CD='30-JUL-2001;12:08' -->
<A NAME="page_de1721_1_3"> </A>

<P><FONT SIZE=2>
prior experiences are tenures as President of Fisher-Price and as co-founder and CEO of Software Distribution Services, which today operates as Ingram Micro-D, an international
distributor of personal computer products. Mr.&nbsp;Barry serves on the Board of Directors of Barrister Global Services Network,&nbsp;Inc., a publicly traded company. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Richard H. Tullis, Ph.D  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Dr.&nbsp;Tullis has extensive biotechnology management and research experience, and is the founder of Syngen Research,&nbsp;Inc., a wholly-owned subsidiary
of Aethlon Medical,&nbsp;Inc. Dr.&nbsp;Tullis became a vice president and director of the Company in January, 2000. Effective June&nbsp;1, 2001, Dr.&nbsp;Tullis was appointed Chief Scientific
Officer of the Company. Previously, Dr.&nbsp;Tullis co-founded Molecular Biosystems,&nbsp;Inc., a former NYSE company. At Molecular Biosystems, Dr.&nbsp;Tullis was Director of
Research and Development, Director of Oligonucleotide Hybridization, Senior Research Scientist and Member of the Board of Directors. In research, Dr.&nbsp;Tullis developed and patented the first
application of oligonucleotides to antisense antibiotics and developed new methods for the chemical synthesis of DNA via methoxy-phosphorochloridites. Dr.&nbsp;Tullis also co-developed
the first applications of covalently coupled DNA-enzyme conjugates using synthetic oligonucleotides during his tenure at Molecular Biosystems. In 1985, Dr.&nbsp;Tullis founded, and
served as President and CEO of Synthetic Genetics,&nbsp;Inc., a pioneer in custom DNA synthesis, which was sold to Molecular Biology Resources in 1991. Dr.&nbsp;Tullis also served as
interim-CEO of Genetic Vectors,&nbsp;Inc., which completed its IPO under his management, and was co-founder of DNA Sciences,&nbsp;Inc., a company that was eventually
acquired by Genetic Vectors. Dr.&nbsp;Tullis received his Ph.D. in Biochemistry and Cell Biology from the University of California at San Diego, and has done extensive post-doctoral work
at UCSD, USC, and The Scripps Research Institute. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Edward G. Broenniman  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Broenniman became a director of the Company on March&nbsp;10, 1999. Mr.&nbsp;Broenniman has 30&nbsp;years of management and executive
experience with high-tech, privately held growth firms where he has served as a CEO, COO, or corporate advisor, using his expertise to focus management on increasing profitability and
stockholder value. He is the Managing Director of The Piedmont Group, LLC, a venture advisory firm. Mr.&nbsp;Broenniman recently served on the Board of Directors of publicly traded QuesTech
(acquired by CACI International), and currently serves on the Boards of four privately-held firms. His nonprofit Boards are the Dingman Center for Entrepreneurship's Board of Advisors at
the University of Maryland, the National Association of Corporate Directors, National Capital Chapter and the Board of the Association for Corporate Growth, National Capital Chapter. </FONT></P>

<UL>

<P><FONT SIZE=2><B> Robert J. Lambrix  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Lambrix became a director of the Company on February&nbsp;1, 2000. Since April&nbsp;2000, Mr.&nbsp;Lambrix has been the Chief Executive
Officer of U.S. Medical,&nbsp;Inc., a distributor of new and used medical equipment. From January&nbsp;1997 to March&nbsp;2000 he was a management consultant, and he was Chief Financial Officer
of Senior Campus Living from April through September of 1996. From March&nbsp;1994 to May&nbsp;1995, Mr.&nbsp;Lambrix was a principal with Kotter Associates. He is the former Senior Vice
President and Chief Financial Officer of Baxter International,&nbsp;Inc., a global leader in the development, manufacture, and distribution of medical devices and hospital supplies. He also serves
as a director of o2wireless Solutions,&nbsp;Inc., a publicly traded company. </FONT></P>

<UL>

<P><FONT SIZE=2><B> John P. Penhune, Ph.D  </B></FONT></P>

</UL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Dr.&nbsp;Penhune was a founder, President, and Chairman of the Board of Cell Activation,&nbsp;Inc. prior to its acquisition by the Company in
April&nbsp;2000, and he was elected a director of the Company at that time. In addition, he is Senior Vice President for Research at Science Applications International Corporation (SAIC), a Fortune
500 company with annual sales exceeding $5&nbsp;billion. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>3</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=5,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=251772,FOLIO='3',FILE='DISK015:[01MOC1.01MOC1721]DE1721A.;6',USER='JHILL',CD='30-JUL-2001;12:08' -->
<A NAME="page_de1721_1_4"> </A>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;Dr.&nbsp;Clara Ambrus, the inventor of the Hemopurifier cartridge and founder of Hemex,&nbsp;Inc., has retired from her position as Chief Scientific Officer of the Company
effective June&nbsp;1, 2001 and will not stand for re-election to the board of directors. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has an Audit Committee and a Compensation Committee. The current Audit Committee is comprised of Mr.&nbsp;Lambrix, Chairman, Mr.&nbsp;Broenniman, and
Dr.&nbsp;Penhune. The current Compensation Committee is comprised of Mr.&nbsp;Broenniman, Chairman, Mr.&nbsp;Lambrix, and Dr.&nbsp;Penhune. It submits recommendations to the Board on all
matters relating to the compensation of officers and key employees. Both committees held their first meeting in May&nbsp;2000. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Other
than the Audit and Compensation Committees, the Company does not have any standing nominating or other committees of the Board of Directors. Each of the directors is serving for
a term that extends to the next Annual Meeting of Shareholders of the Company. During the fiscal year ended March&nbsp;31, 2001, the Board of Directors held three meetings. Dr.&nbsp;Clara Ambrus
and Robert J. Lambrix attended less than 75% of the board meetings held during the fiscal year. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;At
a meeting held on May&nbsp;31, 2000, the Board of Directors approved a fee arrangement for non-employee directors, effective with the May&nbsp;31, 2000 meeting. The
annual retainer consists of a stock option to purchase 2,000 shares of the Company's common stock issued at 75% of the average closing price of the stock for the 30&nbsp;days prior to issuance. A
cash fee of $1,000 for each day or partial day spent attending board and committee meetings is also paid. The cash fee for telephonic attendance is $500. In addition, the directors will receive an
option to purchase 100 shares of the Company's common stock for each board and committee meeting attended in person or by phone. The exercise price for these options is calculated in the same manner
as the annual retainer. The Company will also reimburse all out-of-pocket expenses incurred to attend meetings. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Under
the fee arrangement described above, the three non-employee directors received options to purchase a total of 8,500 shares of the Company's common stock with
exercise prices ranging from $1.78 to $5.80 per share covering the retainer and board and committee meetings through June&nbsp;30, 2001. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;No
director of the Company has resigned or declined to stand for re-election to the Board of Directors because of disagreement with the Company on any matters relating to
the Company's operations, policies or practices since the date of the last meeting of shareholders. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;VOTE
REQUIRED </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Management
intends to vote "FOR" all of the Director nominees set forth above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;THE
BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT THE COMPANY'S STOCKHOLDERS VOTE "FOR" THE ELECTION OF THE FOREGOING SLATE OF
NOMINEES FOR THE BOARD OF DIRECTORS, AND YOUR PROXY WILL BE SO VOTED UNLESS YOU SPECIFY OTHERWISE. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>4</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=6,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=202156,FOLIO='4',FILE='DISK015:[01MOC1.01MOC1721]DE1721A.;6',USER='JHILL',CD='30-JUL-2001;12:08' -->
<A NAME="page_de1721_1_5"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="de1721_share_ownership_of_cert__de102407"> </A>
<A NAME="toc_de1721_3"> </A>
<BR></FONT><FONT SIZE=2><B>SHARE OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the beneficial ownership of the Company's shares as of June&nbsp;30, 2001 for (i)&nbsp;each current Director and each
nominee for Director (ii)&nbsp;each named executive officer of the Company as defined in 402(a)(2) of Regulation&nbsp;S-B of the Securities Act of 1933, (iii)&nbsp;all persons known
by the Company to beneficially own more than 5% of the Company's voting Shares, and (iv)&nbsp;all executive officers and Directors of the Company as a group. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="35%" ALIGN="LEFT"><FONT SIZE=1><B>Name<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="35%" ALIGN="CENTER"><FONT SIZE=1><B>Title</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="12%" ALIGN="CENTER"><FONT SIZE=1><B>Number<BR>
of Shares</B></FONT><HR NOSHADE></TH>
<TH WIDTH="3%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>Percent<BR>
of<BR>
Class(1)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2>James A. Joyce</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2>Chairman, Secretary, President, Chief Executive Officer, Director</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2>680,400</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>18.7</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2><BR>
Accelerated&nbsp;Technologies&nbsp;Fund&nbsp;LLC</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
Shareholder</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
580,804</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
16.0</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2><BR>
Clara M. Ambrus, MD, PhD</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
450,279</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
12.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2><BR>
Franklyn S. Barry, Jr.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
418,593</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>(2)</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2><BR>
Deborah Salerno</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
Shareholder</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
370,685</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
10.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2><BR>
Edward G. Broenniman</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
258,774</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>(3)</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
7.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2><BR>
Richard H. Tullis,&nbsp;PhD</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
Chief Scientific Officer, Vice President, Director</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
65,500</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
1.8</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2><BR>
John P. Penhune,&nbsp;PhD</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
44,036</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>(4)</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
1.2</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="35%"><FONT SIZE=2><BR>
Robert J. Lambrix</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%"><FONT SIZE=2><BR>
Director</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
2,700</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>(5)</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
0.1</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="BOTTOM">
<TD WIDTH="35%" VALIGN="TOP"><FONT SIZE=2><BR>
All directors and executive officers of Company as a group (7&nbsp;persons)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="35%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="12%" ALIGN="RIGHT"><FONT SIZE=2><BR>
1,920,282</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>(6)</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2><BR>
47.4</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>%</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT><FONT SIZE=2>(1)</FONT></DT><DD><FONT SIZE=2>Assumes
3,629,705 shares outstanding plus, for each individual, any securities that such individual has the right to acquire upon the exercise of presently exercisable stock options
and warrants. Each beneficial owner's percentage ownership is determined by assuming that options and warrants that are held by such person and which are exercisable within 60&nbsp;days from the
date hereof have been exercised.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(2)</FONT></DT><DD><FONT SIZE=2>Includes
the option to purchase 412,500 shares of common stock at an exercise price of $3.00 per share.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(3)</FONT></DT><DD><FONT SIZE=2>Includes
201,989 shares owned of record by Linda Broenniman, Mr.&nbsp;Broenniman's wife, and options to purchase 2,900 shares of common stock at exercise prices ranging from $1.78
to $5.80 per share.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(4)</FONT></DT><DD><FONT SIZE=2>Includes
options to purchase 2,900 shares of common stock at exercise prices ranging from $1.78 to $5.80 per share.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(5)</FONT></DT><DD><FONT SIZE=2>Options
to purchase 2,700 shares of common stock at exercise prices ranging from $1.78 to $5.80 per share.
<BR><BR></FONT></DD><DT><FONT SIZE=2>(6)</FONT></DT><DD><FONT SIZE=2>Includes
options to purchase 421,000 shares of common stock at exercise prices ranging from $1.78 to $5.80 per share. </FONT></DD></DL>
<P ALIGN="CENTER"><FONT SIZE=2>5</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=7,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=727121,FOLIO='5',FILE='DISK015:[01MOC1.01MOC1721]DE1721A.;6',USER='JHILL',CD='30-JUL-2001;12:08' -->
<A NAME="page_de1721_1_6"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><B>SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;16(a) of the Securities Exchange Act of 1934 requires the Company's directors and officers and persons who own more than 10% of a registered
class of the Company's equity securities to file reports of ownership and changes in ownership with the Securities and Exchange Commission ("SEC"). Directors, officers, and
greater-than-10% stockholders are required by SEC regulations to furnish the
Company with copies of all Section&nbsp;16(a) forms they file. Based solely on review of information furnished to the Company, the Company believes that all Section&nbsp;16(a) filing requirements
applicable to its directors, officers, and greater-than-10% beneficial owners were complied with during the fiscal year ended March&nbsp;31, 2001. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>EXECUTIVE OFFICERS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The names, ages and positions of the Company's executive officers as of June&nbsp;30, 2001 are listed below: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="32%" ALIGN="LEFT"><FONT SIZE=1><B>Name and Age<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="47%" ALIGN="CENTER"><FONT SIZE=1><B>Title or Position</B></FONT><HR NOSHADE></TH>
<TH WIDTH="2%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="16%" ALIGN="CENTER"><FONT SIZE=1><B>Officer Since</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>James A. Joyce, 39</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>Chairman, President, Chief Executive Officer and Secretary</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2>March 1999</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="32%"><FONT SIZE=2>Richard H. Tullis,&nbsp;Ph.D,&nbsp;56</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="47%"><FONT SIZE=2>Vice President and Chief Scientific Officer</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="16%"><FONT SIZE=2>January 2000</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Background
information on the executive officers that also serve on the Board is furnished above. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Effective
June&nbsp;1, 2001, Mr.&nbsp;Joyce was appointed President and Chief Executive Officer of the Company, replacing Mr.&nbsp;Barry, who will continue as a member of the
board of directors. Mr.&nbsp;Barry will also serve as a consultant on strategic business issues. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Also
effective June&nbsp;1, 2001, Dr.&nbsp;Tullis was appointed as the Company's Chief Scientific Officer, replacing Dr.&nbsp;Ambrus, who retired. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;John
M. Murray, the Company's Chief Financial Officer retired as of February&nbsp;28, 2001. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>6</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=6,SEQ=8,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=324274,FOLIO='6',FILE='DISK015:[01MOC1.01MOC1721]DE1721A.;6',USER='JHILL',CD='30-JUL-2001;12:08' -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="page_dg1721_1_7"> </A> </FONT></P>

<!-- TOC_END -->
<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dg1721_compensation_of_executive_officers"> </A>
<A NAME="toc_dg1721_1"> </A>
<BR></FONT><FONT SIZE=2><B>COMPENSATION OF EXECUTIVE OFFICERS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the aggregate compensation paid by the Company for services rendered during the periods indicated. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH COLSPAN=7 ALIGN="CENTER"><FONT SIZE=1><B>ANNUAL COMPENSATION</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="14%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>LONG-TERM COMPENSATION</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="18%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="14%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=3 ALIGN="CENTER"><FONT SIZE=1><B>AWARDS</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>PAYOUTS</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="18%" ALIGN="LEFT"><FONT SIZE=1><B>NAME AND PRINCIPAL POSITION<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>FISCAL YEAR</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="8%" ALIGN="CENTER"><FONT SIZE=1><B>SALARY<BR>
($)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="7%" ALIGN="CENTER"><FONT SIZE=1><B>BONUS<BR>
($)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="14%" ALIGN="CENTER"><FONT SIZE=1><B>OTHER ANNUAL<BR>
COMPENSATION<BR>
($)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="11%" ALIGN="CENTER"><FONT SIZE=1><B>RESTRICTED<BR>
STOCK ($)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>OPTIONS/<BR>
SARS (#)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>LTIP<BR>
PAYOUTS ($)</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH WIDTH="9%" ALIGN="CENTER"><FONT SIZE=1><B>ALL OTHER(1)</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=1>James A. Joyce<BR>
Chairman</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>2000<BR>
2001</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>120,000<BR>
120,000</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
</TR>
<TR BGCOLOR="White" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=1>Franklyn&nbsp;S.&nbsp;Barry,&nbsp;Jr.<BR>
President, CEO</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>2000<BR>
2001</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>120,000<BR>
120,000</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>412,500<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="18%"><FONT SIZE=1>Richard&nbsp;H.&nbsp;Tullis,&nbsp;PhD<BR>
VP, CSO</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>2000<BR>
2001</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="8%" ALIGN="RIGHT"><FONT SIZE=1>20,000<BR>
90,000</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="14%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="11%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
30,000</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=1>&#151;<BR>
&#151;</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE ALIGN="LEFT" WIDTH="120">
<DL compact>
<DT><FONT SIZE=1>(1)</FONT></DT><DD><FONT SIZE=1>The
remuneration described in the table does not include the cost to the Company of benefits furnished to the named executive officers, including the reimbursement of health
insurance premiums. The value of such benefits cannot be precisely determined; however, the executive officers named above did not receive other compensation in excess of the lesser of $50,000 or 10%
of such officers' cash compensation. </FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the fiscal year ended March&nbsp;31, 2001, Mr.&nbsp;Joyce and Mr.&nbsp;Barry each earned a salary of $120,000 of which $70,000 has
been paid and $50,000 is unpaid for each officer as of June&nbsp;30, 2001. No other officer of the Company received compensation in excess of $100,000 for the fiscal year. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Upon
the Company's acquisition of Syngen Research,&nbsp;Inc. from its sole shareholder, Dr.&nbsp;Richard Tullis, effective January&nbsp;10, 2000, the Company also entered into a
two-year employment agreement with Dr.&nbsp;Tullis. The agreement provides for a base annual compensation of $80,000 and an annual incentive bonus of up to $30,000. Effective
January&nbsp;1, 2001, Dr.&nbsp;Tullis' annual base pay was increased to $120,000. During the fiscal year ended March&nbsp;31, 2001, Dr.&nbsp;Tullis earned $90,000 of which $67,000 has been
paid and $23,000 is unpaid as of June&nbsp;30, 2001. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Effective
June&nbsp;1, 2001, the Board of Directors approved the increase of Mr.&nbsp;Joyce's and Dr.&nbsp;Tullis' base annual compensation to $180,000 and $150,000,
respectively. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
agreements with the officers above also provide that the employees are eligible to receive the Company's standard benefits package and participation in an incentive compensation
program to be developed and approved by the Board of Directors. Under the terms of the agreements, if the employment with the Company ceases, the employees may become eligible to receive salary and
benefits continuation payments for 12&nbsp;months. </FONT></P>


<P><FONT SIZE=2><B>Option Grants&#151;Individual Grants  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;During the year ended March&nbsp;31, 2001, the Company granted an incentive stock option to Dr.&nbsp;Tullis to purchase 30,000 common stock at an exercise
price of $2.56 per share. The options vest 50% on January&nbsp;1, 2002 and 50% on January&nbsp;1, 2003, upon meeting certain research and development milestones. The option expires
December&nbsp;31, 2010. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In
April&nbsp;1999, Mr.&nbsp;Barry was granted an incentive stock option to purchase 412,500 shares of common stock at an exercise price of $3.00 per share, which vested fully in
September&nbsp;2000 and expires September&nbsp;11, 2005. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;There
were no in-the-money options at March&nbsp;31, 2001 related to the option grants above (assuming a market value of $2.50 on March&nbsp;31, 2001). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>LIMITATION OF LIABILITY AND INDEMNIFICATION MATTERS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Company's Certificate of Incorporation limits the liability of directors to the maximum extent permitted by Nevada law. Such limitation of liability does
not apply to liabilities arising under the federal securities laws and does not affect the availability of equitable remedies such as injunctive relief or rescission. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>7</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=9,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=20981,FOLIO='7',FILE='DISK015:[01MOC1.01MOC1721]DG1721A.;6',USER='JHILL',CD='30-JUL-2001;11:55' -->
<A NAME="page_dg1721_1_8"> </A>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;The Company's Bylaws provide that the Company shall indemnify its directors and executive officers and may indemnify its other officers and employees and other agents to the fullest
extent permitted by law. The Company believes that indemnification under its Bylaws covers at least negligence and gross negligence on the part of indemnified parties. The Company's Bylaws also permit
it to secure insurance on behalf of any officer, director, employee, or other agent for any liability arising out of his or her actions in such capacity, regardless of whether the Bylaws permit such
indemnification. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;At
present, there is no pending litigation or proceeding involving any director, officer, employee, or agent of the Company where indemnification will be required or permitted. The
Company is not aware of any threatened litigation or proceeding that might result in a claim for such indemnification. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Certain officers of the Company and other related parties have advanced the Company funds, agreed to defer compensation and paid expenses on behalf of the
Company to cover short-term working capital shortages. These non interest-bearing amounts have been included as due to related parties in the consolidated financial statements filed as
part of the 2001 Annual Report on Form&nbsp;10-KSB. Related party liabilities approximated $920,000 and $754,000, respectively, for the years ended March&nbsp;31, 2001 and 2000. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Effective
January&nbsp;1, 2000, the Company entered into an agreement with a related party under which an invention and related patent rights for a method of removing HIV and other
viruses from the blood using the Hemopurifier&#153; were assigned to the Company by the inventors in exchange for (1)&nbsp;a royalty to be paid on future sales of the patented product or
process equal to 8.75% of net sales, as defined and (2)&nbsp;12,500 shares of the Company's common stock. Upon the issuance of the first United States patent relating to the invention, the Company
is obligated to issue an additional 12,500 shares of common stock to the inventors. If the market trading price of the Company's common stock on the date the patent is issued is below $8 per share,
then the number of shares to be issued will be that number which equates to $100,000 of market trading value. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="dg1721_2._ratification_of_the_selecti__2._02936"> </A>
<A NAME="toc_dg1721_2"> </A>
<BR></FONT><FONT SIZE=2><B>2.&nbsp;&nbsp;RATIFICATION OF THE SELECTION<BR>  OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS    <BR>  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;At the Meeting, a vote of the holders of Common Stock will be taken for the ratification of the selection of the firm of Squar, Milner, Reehl&nbsp;&amp;
Williamson LLP ("Squar Milner"), independent certified public accountants, as auditors for the fiscal year ending March&nbsp;31, 2002. </FONT></P>

<P><FONT SIZE=2><B>General  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;On November&nbsp;1, 2000, Freed, Maxick, Sachs&nbsp;&amp; Murphy PC ("Freed Maxick"), the independent certified public accountants that audited the Company's
financial statements for the years ended March&nbsp;31, 2000 and 1999, merged into McGladrey&nbsp;&amp; Pullen, LLP and subsequently McGladrey&nbsp;&amp; Pullen, LLP became the Company's new auditor.
Freed Maxick's reports on the Company's financial statements for the years ended March&nbsp;31, 2000 and 1999 contained an unqualified opinion with an emphasis paragraph describing an uncertainty as
to the Company's ability to continue as a going concern. McGladrey&nbsp;&amp; Pullen, LLP has not issued any report on the Company's consolidated financial statements. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;On
May&nbsp;1, 2001, the Company engaged Squar, Milner, Reehl&nbsp;&amp; Williamson, LLP as its principal accountant, replacing McGladrey&nbsp;&amp; Pullen, LLP who has declined to
stand for re-election. The registrant's Board of Directors has approved the decision to engage the new accountants. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>8</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=2,SEQ=10,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=810380,FOLIO='8',FILE='DISK015:[01MOC1.01MOC1721]DG1721A.;6',USER='JHILL',CD='30-JUL-2001;11:55' -->
<A NAME="page_dg1721_1_9"> </A>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;During the two most recent fiscal years that Freed Maxick was engaged as the Company's independent certified public accountants, and through the date on which they merged with
McGladrey&nbsp;&amp; Pullen, LLP, there were no disagreements with Freed Maxick on any matter of accounting principles or practices, financial statement disclosure, audit scope or procedure which, if
not resolved to its satisfaction, would have caused it to make reference to such disagreement in connection with its report. From the date of their engagement and through the date on which they
declined to stand for re-election, there were no disagreements with McGladrey&nbsp;&amp; Pullen, LLP on any matter of accounting principles or practices, financial statement disclosure,
audit scope or procedure which, if not resolved to its satisfaction, would have caused it to make reference to such disagreement in connection with a report. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Squar
Milner has no financial interest in the Company. A representative of Squar Milner is expected to be present at the Annual Meeting, will have an opportunity to make a statement
if he or she so desires and is expected to be available to respond to appropriate questions. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Squar
Milner performed the audit of the annual consolidated financial statements for the year ended March&nbsp;31, 2001 and reported their results to the Audit Committee of the
Board of Directors. The report of Squar Milner on the consolidated financial statements of the registrant for the fiscal year
ended March&nbsp;31, 2001 was an unqualified opinion, with an emphasis paragraph describing the uncertainties to continue as a going concern. No other services were performed. There are no
disagreements with Squar Milner on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. </FONT></P>

<P><FONT SIZE=2><B>Audit Fees  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Following is a summary of the fiscal 2001 fees paid to Freed Maxick/McGladrey&nbsp;&amp; Pullen, LLP for the audit of the Company's March&nbsp;31, 2000
consolidated financial statements, reviews of quarterly reports and other reports filed with the SEC in fiscal 2001: </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="40%" ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=2>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=5 ALIGN="CENTER"><FONT SIZE=1><B>All Other</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="LEFT"><FONT SIZE=1>&nbsp;</FONT><BR></TH>
</TR>
<TR VALIGN="BOTTOM">
<TH WIDTH="40%" ALIGN="LEFT"><FONT SIZE=1><B>Payments in<BR>
Year Ended<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Annual<BR>
Audit</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Tax</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Audit-<BR>
Related</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Non-Audit-<BR>
Related</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Total<BR>
All Other</B></FONT><HR NOSHADE></TH>
<TH WIDTH="1%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Total</B></FONT><HR NOSHADE></TH>
</TR>
<TR BGCOLOR="#CCEEFF" VALIGN="TOP">
<TD WIDTH="40%"><FONT SIZE=2>March 31, 2001</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>31,200</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="4%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>9,500</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="9%" ALIGN="RIGHT"><FONT SIZE=2>-0-</FONT></TD>
<TD WIDTH="1%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="7%" ALIGN="RIGHT"><FONT SIZE=2>46,900</FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Company expects audit fees for the audit of the March&nbsp;31, 2001 consolidated financial statements by Squar Milner to total approximately $25,000. The Company is current in
the payment of fees due. </FONT></P>

<P><FONT SIZE=2><B>Report of the Audit Committee  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors of the Company has appointed an Audit Committee currently composed of three directors, Mr.&nbsp;Lambrix, Chairman,
Mr.&nbsp;Broenniman, and Dr.&nbsp;Penhune. On May&nbsp;31, 2000, the Company's Board of Directors adopted a Charter of the Audit Committee. All of the members of the Audit Committee are
independent directors pursuant to Rule&nbsp;4200(a)(14) of the National Association of
Securities Dealers' listing standards. The Audit Committee meets with management, independent auditors, and appropriate Company financial personnel to consider the adequacy of the Company's internal
controls and the objectivity of its financial reporting. The committee recommends to the Board of Directors the appointment of the independent auditors, subject to ratification by the Stockholders at
the Annual Meeting. The Audit Committee reviews the independent auditors proposed audit plan and fees, and the completed audit. The independent auditors periodically meet alone with the committee and
always have unrestricted access to the Audit Committee with respect to the Company's accounting practices and procedures and management's compliance with those practices and procedures. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>9</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=3,SEQ=11,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=873635,FOLIO='9',FILE='DISK015:[01MOC1.01MOC1721]DG1721A.;6',USER='JHILL',CD='30-JUL-2001;11:55' -->
<A NAME="page_dg1721_1_10"> </A>

<P><FONT SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;It is not the duty of the Audit Committee to prepare the Company's financial statements, to plan or conduct audits, or to determine that the Company's financial statements are
complete and accurate and are in accordance with generally accepted accounting principles. The Company's management is responsible for preparing the Company's financial statements and for maintaining
internal control. The independent auditors are responsible for auditing the financial statements and for expressing an opinion as to whether those audited financial statements fairly present the
financial position, results of operations, and cash flows of the Company in conformity with generally accepted accounting principles. The Audit Committee met in May&nbsp;2000 and in
July&nbsp;2001, prior to filing the Annual Report on Form&nbsp;10-KSB for the year ended March&nbsp;31, 2001. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee has reviewed and discussed the Company's audited consolidated financial statements with management and with Squar Milner, the Company's independent auditors for
fiscal 2001. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee has discussed with Squar Milner the matters required to be discussed by Statement on Auditing Standards No.&nbsp;61. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The
Audit Committee has received from Squar Milner the written statements required by Independence Standards Board Standard No.&nbsp;1, Independence Discussions with Audit
Committees, and has discussed Squar Milner `s independence with them, and has considered the compatibility of non-audit services with the auditors' independence. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Based
on the review and discussions referred to above, the Audit Committee has recommended to the Board of Directors that the audited consolidated financial statements be included in
the Company's Annual Report on Form&nbsp;10-KSB for the year ended March&nbsp;31, 2001 for filing with the Securities and Exchange Commission. </FONT></P>

<UL>
<UL>
<UL>

<P><FONT SIZE=2>The
Audit Committee </FONT></P>

<P><FONT SIZE=2>Robert
J. Lambrix, Chairman<BR>
Edward G. Broenniman<BR>
John P. Penhune, PhD </FONT></P>

</UL>
</UL>
</UL>

<P><FONT SIZE=2><B>Use of the Report of the Audit Committee  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;In accordance with and to the extent permitted by applicable law or regulation, the information contained in the Report of the Audit Committee and the Audit
Committee Charter shall not be incorporated by reference into any future filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and shall not be
deemed to be soliciting material or to be filed with the SEC under the Securities Act of 1933 or the Securities Exchange Act of 1934. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;VOTE
REQUIRED </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Ratification
of the appointment of auditors requires a majority of the votes cast thereon. Any Shares not voted, whether by abstention, broker non-vote, or otherwise, have
no impact on the vote. If the Stockholders do not ratify this appointment, other independent auditors will be considered by the Board of Directors upon recommendation of the Audit Committee. The
affirmative vote of a majority of the outstanding Shares is required to approve this proposal. Management intends to vote "FOR" the proposal to ratify the auditors. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;THE
BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT THE COMPANY'S STOCKHOLDERS VOTE "FOR" THE RATIFICATION OF THE AUDITORS, AND YOUR PROXY WILL BE SO VOTED UNLESS YOU SPECIFY
OTHERWISE. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>10</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=4,SEQ=12,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=757610,FOLIO='10',FILE='DISK015:[01MOC1.01MOC1721]DG1721A.;6',USER='JHILL',CD='30-JUL-2001;11:55' -->
<A NAME="page_dg1721_1_11"> </A>
<P ALIGN="CENTER"><FONT SIZE=2><B>SHAREHOLDER PROPOSALS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Proposals of shareholders to be presented to the 2002 annual meeting must be received by the Company on or before April&nbsp;26, 2002, for possible inclusion
in the proxy statement and form of proxy relating to that meeting. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>MISCELLANEOUS AND OTHER MATTERS  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Management knows of no matters to come before the Meeting other than those specified herein. If any other matter should come before the Meeting, then the
persons named in the enclosed form of proxy will have discretionary authority to vote all proxies with respect thereto in accordance with their judgment. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;A
COPY OF THE COMPANY'S CURRENT ANNUAL REPORT ON FORM 10-KSB AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, INCLUDING THE FINANCIAL STATEMENTS AND SCHEDULES
THERETO, IS BEING MAILED TO EACH STOCKHOLDER TOGETHER WITH THIS PROXY STATEMENT. ADDITIONAL COPIES MAY BE OBTAINED BY STOCKHOLDERS WITHOUT CHARGE BY WRITING TO: AETHLON MEDICAL,&nbsp;INC., 7825 FAY
AVENUE, SUITE 200, LA JOLLA, CALIFORNIA 92037. COPIES OF ANY EXHIBITS TO THE ANNUAL REPORT, SPECIFICALLY LISTED IN THE ANNUAL REPORT, MAY BE OBTAINED BY STOCKHOLDERS WITH A CHARGE EQUAL TO THE
COMPANY'S COST TO COPY AND SEND ANY REQUESTED EXHIBIT. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>COST OF PROXY SOLICITATION  </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The cost of preparing, assembling, and mailing proxy statements and other material furnished to shareholders in connection with the solicitation of proxies
will be borne by the Company. Arrangements will be made with brokerage houses, nominees, fiduciaries, and other custodians to send proxies and proxy material to beneficial owners of the Company's
common shares, and the Company will reimburse them for their expenses is so doing. Proxies may be solicited personally or by telephone, fax, e-mail, or regular mail by directors, officers,
and regular employees of the Company without additional compensation for such services. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>11</FONT></P>

<HR NOSHADE>
<!-- ZEQ.=5,SEQ=13,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=323372,FOLIO='11',FILE='DISK015:[01MOC1.01MOC1721]DG1721A.;6',USER='JHILL',CD='30-JUL-2001;11:55' -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<P ALIGN="RIGHT"><FONT SIZE=2><B>PROXY  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>AETHLON MEDICAL, INC.  </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><B>This Proxy is Solicited on Behalf of the Board of Directors of<BR>
The Company for the Annual Meeting October&nbsp;29, 2001  </B></FONT></P>

<P><FONT SIZE=2>The
undersigned hereby constitutes and appoints Richard H. Tullis, Ph.D and Bruce Haglund, and each or either of them, proxies with full power of substitution, to vote for the undersigned all shares
of voting securities of Aethlon Medical,&nbsp;Inc. which the undersigned would be entitled to vote if personally present at the annual meeting of shareholders to be held on October&nbsp;29, 2001,
and at any adjournment thereof, upon the matters described in the accompanying Proxy Statement and upon any other business that may properly come before the meeting or any adjournment thereof. Said
proxies are directed to vote or refrain from voting as indicated in this proxy, and otherwise in their discretion. </FONT></P>

<!-- User-specified TAGGED TABLE -->
<TABLE WIDTH="100%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=2>1.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=7 VALIGN="TOP"><FONT SIZE=2>Election of Directors, Nominees:</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=7><FONT SIZE=2>Franklyn S. Barry, Jr., Edward G. Broenniman, James A. Joyce, Robert J. Lambrix,<BR>
John P. Penhune, and Richard H. Tullis</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=7 VALIGN="TOP"><FONT SIZE=2><BR>
/&nbsp;/&nbsp;&nbsp;FOR all nominees (except as marked to the contrary)</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=7 VALIGN="TOP"><FONT SIZE=2>/&nbsp;/&nbsp;&nbsp;WITHHOLD AUTHORITY to vote for all nominees</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=7 VALIGN="TOP"><FONT SIZE=2><BR>
For, except vote withheld from the following nomineee(s):</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=5><BR><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=2><BR>
2.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=7 VALIGN="TOP"><FONT SIZE=2><BR>
Ratification of Selection of Independent Certified Public Accountants</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT SIZE=2><BR>
/&nbsp;/&nbsp;&nbsp;FOR</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT SIZE=2><BR>
/&nbsp;/&nbsp;&nbsp;AGAINST</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT SIZE=2><BR>
/&nbsp;/&nbsp;&nbsp;ABSTAIN</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=9><BR><FONT SIZE=2><B>You are encouraged to specify your choices by marking the appropriate boxes, but you need not mark any boxes if you wish to vote in accordance with the Board of Directors' recommendations. The Proxies cannot vote
your shares unless you sign and return this Card.</B></FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=7><FONT SIZE=2><BR>
Dated: ____________________________________, 2001</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=7><FONT SIZE=2><BR>
PLEASE SIGN EXACTLY AS NAME(S) APPEAR HEREON. JOINT OWNERS SHOULD BOTH SIGN. WHEN SIGNING AS ATTORNEY, EXECUTOR, ADMINISTRATOR, TRUSTEE OR GUARDIAN, PLEASE GIVE FULL TITLE AS SUCH.</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=7 ALIGN="CENTER"><BR><HR NOSHADE></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="2%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=7 ALIGN="CENTER"><BR><HR NOSHADE><FONT SIZE=2> (Signature of Shareholder(s))</FONT></TD>
<TD WIDTH="2%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="42%" VALIGN="TOP"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD COLSPAN=9 ALIGN="CENTER"><BR><FONT SIZE=2><B>PLEASE SIGN, DATE AND RETURN THIS PROXY CARD IN THE ENCLOSED ENVELOPE,<BR>
WHICH REQUIRES NO POSTATE IF MAILED IN THE UNITED STATES.</B></FONT></TD>
</TR>
</TABLE>
<!-- end of user-specified TAGGED TABLE -->

<HR NOSHADE>
<!-- ZEQ.=1,SEQ=14,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1",CHK=626304,FOLIO='blank',FILE='DISK015:[01MOC1.01MOC1721]MA1721A.;4',USER='JHILL',CD='30-JUL-2001;11:55' -->
<!-- Generated by Merrill Corporation (www.merrillcorp.com) -->
<BR>
<P><br><A NAME="01MOC1721_1">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_be1721_1">NOTICE OF MEETING OF SHAREHOLDERS</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_de1721_1">PROXY&#160;STATEMENT</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1721_2">1. ELECTION OF DIRECTORS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_de1721_3">SHARE OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT</A></FONT><BR>
<!-- TOC_BEGIN -->
<FONT SIZE=2><A HREF="#toc_dg1721_1">COMPENSATION OF EXECUTIVE OFFICERS</A></FONT><BR>
<FONT SIZE=2><A HREF="#toc_dg1721_2">2. RATIFICATION OF THE SELECTION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS</A></FONT><BR>

<!-- SEQ=,FILE='QUICKLINK',USER=JHILL,SEQ=,EFW="2055303",CP="AETHLON MEDICAL, INC.",DN="1" -->
<!-- TOCEXISTFLAG -->
</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
