<SUBMISSION>
<ACCESSION-NUMBER>0001002014-08-001027
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20080930
<FILING-DATE>20081114
<DATE-OF-FILING-DATE-CHANGE>20081114
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ALR TECHNOLOGIES INC
<CIK>0001087022
<ASSIGNED-SIC>3669
<IRS-NUMBER>880225807
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>000-30414
<FILM-NUMBER>081191359
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>3350 RIVERWOOD PKWY
<STREET2>SUITE 1900
<CITY>ATLANTA
<STATE>2Q
<ZIP>30339
<PHONE>(678) 881-1418
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>3350 RIVERWOOD PKWY
<STREET2>SUITE 1900
<CITY>ATLANTA
<STATE>2Q
<ZIP>30339
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>alrti10q93008.htm
<DESCRIPTION>ALR TECHNOLOGIES INC. FORM 10-Q (9-30-08).
<TEXT>

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   <TITLE>ALR TECHNOLOGIES INC. Form 10-Q (9-30-08).</TITLE>
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<A name="page_1"></A></P>
<P>&nbsp;</P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif"></FONT></B>&nbsp;</P>
<P style="BORDER-BOTTOM: #000000 3pt solid" align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">&nbsp;&nbsp; </FONT></B></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">UNITED STATES</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECURITIES AND EXCHANGE COMMISSION</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Washington, D.C. 20549</FONT></B><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>FORM 10-Q</FONT></B></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="4%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">[X]</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="95%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=left width="95%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30,</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=left width="95%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">2008</FONT></B>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Commission file number 000-30414</FONT></B><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=5>ALR TECHNOLOGIES INC.</FONT></B><BR>
<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>(Exact name of registrant as specified in its charter)</FONT></I><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">NEVADA</FONT></B><BR>
<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>(State or other jurisdiction of incorporation or organization)</FONT></I><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">3350 Riverwood Parkway, Suite 1900</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Atlanta, Georgia 30339</FONT></B><BR>
<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>(Address of principal executive offices, including zip code.)</FONT></I><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(678) 881-0002</FONT></B><BR>
<I><FONT face="TimesNewRomanPS-ItalicMT,Times New Roman,Times,serif" size=2>(telephone number, including area code)</FONT></I></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 last 90 days. </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>YES <FONT face=Wingdings>x</FONT>&nbsp;&nbsp;&nbsp;&nbsp; NO <FONT face=Wingdings>&#168;</FONT></FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of &#147;large accelerated filer, &#147;accelerated filer,&#148; &#147;non-accelerated filer,&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act.</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="60%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Large Accelerated Filer</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="10%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><FONT face=Wingdings>&#168;</FONT></FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="40%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Accelerated Filer</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="10%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><FONT face=Wingdings>&#168;</FONT></FONT></B></FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Non-accelerated Filer</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="10%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><FONT face=Wingdings>&#168;</FONT></FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="40%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Smaller Reporting Company</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="10%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><FONT face=Wingdings>x</FONT></FONT></B>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New &#13;&#10;Roman,Times,serif" size=2>YES <FONT face=Wingdings>&#168;</FONT>&nbsp;&nbsp;&nbsp;&nbsp; NO <FONT face=Wingdings>x</FONT></FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>State the number of shares outstanding of each of the issuer&#146;s classes of common equity, as of the latest practicable date: </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>76,078,446 as of November 14, 2008.</FONT></B></P>
<P style="BORDER-TOP: #000000 3pt solid" align=left><STRONG><FONT size=2>&nbsp; </FONT></STRONG></P>
<P align=left><STRONG><FONT size=2></FONT></STRONG>&nbsp;</P>
<P align=left><STRONG><FONT size=2></FONT></STRONG>&nbsp;</P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PART I &#150; FINANCIAL INFORMATION</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL STATEMENTS</FONT></B></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=7><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interim Consolidated Balance Sheets</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT> </TD></TR>
<TR>
     <TD style="BORDER-BOTTOM: #000000 2pt double" width="100%" colSpan=7>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="58%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Audited)</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Assets</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Current assets:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>22,670</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,973</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts receivable, net of allowance of $5,863</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,248</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,221</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(December 31, 2007 - $2,530)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Inventories, net of reserves (note 3)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>20,303</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>78,922</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Prepaid expenses and deposits (note 4)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>40,128</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>85,349</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>86,116</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Equipment, net of accumulated depreciation</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,564</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,480</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deferred interest expenses (note 5)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>67,200</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="58%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>156,113</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>90,596</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Liabilities and Shareholders' Deficiency</FONT></B>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Current liabilities:</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts payable and accrued liabilities</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,045,141</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,119,545</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Payroll payable</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>17,497</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>18,458</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest payable (note&nbsp;5 and 8)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,444,210</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,942,463</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Advances payable (note 8)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,160,249</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,832,729</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable (notes&nbsp;5 and 8)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,404,225</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,946,578</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="58%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,071,322</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10,859,773</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Commitments and contingency (notes&nbsp;5 and 7)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Shareholders' deficiency</FONT></B>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Capital stock (note 6)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>350,000,000 common shares with a par</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>value of $0.001 per share authorized</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446 issued</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="17%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(December 31, 2007 - 76,078,446)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Additional paid-in capital</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>13,208,446</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,951,235</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="58%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accumulated deficit</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(25,199,733</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(23,796,490</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="58%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(11,915,209</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(10,769,177</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="58%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>156,113</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="17%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>90,596</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>See accompanying Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-1</FONT></P>
<P align=center><FONT size=2><BR>
</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-2-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<A name="page_3"></A>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interim Consolidated Statement of Loss and Deficit</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT> </TD></TR>
<TR>
     <TD style="BORDER-BOTTOM: #000000 2pt double" width="100%" colSpan=13>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended</FONT> </TD>
     <TD noWrap align=right width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Revenue</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Sales</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,988</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,526</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10,926</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>137,096</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cost of sales</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>90</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>589</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,141</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16,783</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,898</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>937</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>9,785</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>120,313</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Expenses</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Depreciation</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>306</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>425</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>916</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,275</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Development costs</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>46,500</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>21,568</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>283,836</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>174,657</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Foreign exchange (gain) loss</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(6,805</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16,199</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(11,782</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>35,951</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>203,992</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>169,852</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>557,704</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>517,903</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Professional fees</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16,522</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>15,020</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>52,312</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>54,228</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Rent</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,172</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>11,071</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>40,745</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>30,462</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Selling, general and administration</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>205,918</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>144,649</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>489,297</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>495,856</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>480,605</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>378,784</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,413,028</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,310,332</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net loss</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(478,707</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(377,847</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,403,243</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,190,019</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accumulated deficit, beginning of period</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(24,721,026</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(23,029,156</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(23,796,490</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(22,216,984</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accumulated deficit, end of period</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="3%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(25,199,733</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(23,407,003</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(25,199,733</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp; </FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(23,407,003</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Loss per share, basic and diluted</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="3%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(0.01</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(0.02</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(0.02</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Weighted average shares outstanding,</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="40%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>- basic and diluted</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>See accompanying Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-2</FONT></P>
<P align=center><FONT size=2><BR>
</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-3-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<A name="page_4"></A>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=15><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=15><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interim Consolidated Statement of Shareholders' Deficiency and Comprehensive Loss</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=15><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=15><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 (Unaudited) and Year Ended December 31, 2007</FONT> </TD></TR>
<TR>
     <TD style="BORDER-BOTTOM: #000000 2pt double" width="100%" colSpan=15>&nbsp;&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=15>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accumulated</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="10%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="22%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Capital Stock</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Additional</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Other</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Number</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Paid in</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accumulated</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Comprehensive</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Shareholders'</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>of Shares</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Amount</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Capital</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deficit</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Income</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deficiency</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="3%"></TD>
     <TD noWrap align=right width="8%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=left width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="10%"></TD>
     <TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Balance, December 31, 2006</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,851,548</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(22,216,984</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>37,164</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(9,252,194</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="8%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="10%"></TD>
     <TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Stock-based compensation</FONT>&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>99,687</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>99,687</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="8%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="10%"></TD>
     <TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Write-off accumulated other</FONT>&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="10%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; comprehensive income</FONT>&nbsp; </TD>
     <TD noWrap align=center width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(37,164</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(37,164</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="8%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="10%"></TD>
     <TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net loss</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,579,506</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,579,506</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="8%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="10%"></TD>
     <TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Balance, December 31, 2007</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,951,235</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(23,796,490</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(10,769,177</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="8%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="10%"></TD>
     <TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Stock-based compensation</FONT>&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="8%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>257,511</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>257,511</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="8%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="10%"></TD>
     <TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net loss</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,403,243</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,403,243</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="20%">&nbsp; </TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="8%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"></TD>
     <TD noWrap align=left width="1%"></TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="10%"></TD>
     <TD noWrap align=left width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Balance, September 30, 2008</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="8%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>13,208,446</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(25,199,733</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(11,915,209</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>See accompanying Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-3</FONT></P>
<P align=center><FONT size=2><BR>
</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-4-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interim Statement of Cash Flows</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 and 2007</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=13><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited )</FONT> </TD></TR>
<TR>
     <TD style="BORDER-BOTTOM: #000000 2pt double" width="100%" colSpan=13>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended</FONT> </TD>
     <TD noWrap align=center width="1%">&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=center width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash flows from operating activities:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash received from customers</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10,568</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,068</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,899</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>140,576</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash paid to suppliers and employees</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(101,299</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(2,361</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(451,465</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(219,290</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest paid</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(3,270</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(151</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(9,737</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(3,135</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net cash provided by (used in) operating</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>activities</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(94,001</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>556</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(448,303</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(81,849</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash flows from financing activities:</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>18,000</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>518,000</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>75,000</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="43%" colSpan=2>&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Repayment of promissory notes payable</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%">&nbsp; <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(50,000</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%">&nbsp; <FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net cash provided by financing activities</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>18,000</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>468,000</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>75,000</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="43%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Increase (decrease) in cash during the period</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(76,001</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>556</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>19,697</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(6,849</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash, beginning of period</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>98,671</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,012</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,973</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,417</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash, end of period</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>22,670</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,568</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>22,670</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,568</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-cash operating activities:</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Stock-based compensation</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>25,686</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>46,220</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,458</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Product development</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>143,791</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>47,391</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="40%"><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administration</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT size=2>-</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT size=2>-</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT size=2>-</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT size=2>39,838</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="40%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%">&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>25,686</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>190,011</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>99,687</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD></TR></TABLE></DIV>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P><BR>
&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>See accompanying Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-4</FONT></P>
<P align=center><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-5-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<A name="page_6"></A>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 and 2007</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><BR>
1. Basis of presentation</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES, INC. (the "Company") was incorporated under the laws of the State of Nevada on March 24, 1987 as Mo Betta Corp. On December 28, 1998, the Company changed its name from Mo Betta Corp. to ALR Technologies Inc. The Company has developed a line of medication compliance reminder devices and compliance monitoring systems that will assist people with taking their medications and treatments on time and allow for heath care professionals to remotely monitor and intervene as necessary if a person is noncompliant.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>In April 2008, the Company incorporated a wholly owned subsidiary in Canada and its activities have been included in the Company&#146;s consolidated financial statements.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America on a going concern basis which presumes the realization of assets and the discharge of liabilities and commitments in the normal course of operations for the foreseeable future.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Company's ability to continue as a going concern is dependent upon the continued financial support of its creditors and its ability to obtain financing to repay its current obligations and fund working capital and its ability to achieve profitable operations. All of the Company's debt financing is either due on demand or is overdue and now due on demand. The Company will seek to obtain creditors' consents to delay repayment of these outstanding promissory notes payable until it is able to replace this financing with funds generated by operations, replacement debt or from equity financings through private placements or the exercise of options and warrants. While the Company's creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. Management plans to obtain financing through the issuance of shares on the exercise of options and warrants and through future common share private placements. Management hopes to realize sufficient sales in future periods to achieve profitable operations. The resolution of the going concern issue is dependent upon the realization of management's plans. There can be no assurance provided that the Company will be able to raise sufficient debt or equity capital, from the sources described above, on satisfactory terms. If management is unsuccessful in obtaining financing or in achieving profitable operations, the Company will be required to cease operations. The outcome of these matters cannot be predicted at this time.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The financial statements do not give effect to any adjustments which could be necessary should the Company be unable to continue as a going concern and, therefore, be required to realize its assets and discharge its liabilities in other than the normal course of business and at amounts differing from those reflected in the financial statements.</FONT></P>
<P align=justify><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>2. Significant accounting policies</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The information included in the accompanying interim financial statements is unaudited and should be read in conjunction with the annual audited financial statements and notes thereto contained in the Company's Report on Form 10-KSB for the fiscal year ended December 31, 2007. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for fair presentation of the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire fiscal year.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-5</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"><BR>
-6-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<A name="page_7"></A>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 and 2007</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>a) Stock-based compensation:</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Prior to January 1, 2006, the Company applied APB Opinion No. 25 in accounting for its stock options issued to directors and employees. Effective January 1, 2006, the Company applies FASB No. 123R in accounting all its stock options issued.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>b) Basic and diluted net loss per common share</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Basic net loss per common share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the year. Diluted net loss per common share is calculated by dividing the net loss by the sum of the weighted average number of common shares outstanding and the dilutive common equivalent shares outstanding during the year. Common equivalent shares consist of the shares issuable upon exercise of stock options and warrants calculated using the treasury stock method. Common equivalent shares are not included in the calculation of the weighted average number of shares outstanding for diluted net loss per common share when the effect would be anti-dilutive.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Statement of Financial Accounting Standards No. 128: Earnings per Share ("SFAS 128") replaces the presentation of primary earnings per share ("EPS") with a presentation of both basic and diluted EPS for all entities with complex capital structures including a reconciliation of each numerator and denominator. Basic EPS excludes dilutive securities and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if dilutive securities were converted into common stock and is computed similarly to fully-diluted EPS pursuant to previous accounting pronouncements. SFAS 128 applies equally to loss per share presentations.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>c) Principles of consolidation</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>These consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, ALRTech Health Systems Inc. (incorporated in British Columbia, Canada). All significant inter-company balances and transactions have been eliminated.</FONT></P>
<P align=justify><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>3. Inventories</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Company's inventories consists of product parts and finished goods inventories. The Company has expended significant efforts introducing its Human Prescription Reminders ("Med Reminders") to disease management companies, home care companies, pharmaceutical manufacturers, health management organizations, pharmacy benefits managers and certain clinics treating specific disease conditions. Sales to September 30, 2008 have not been sufficient for the Company to realize its investment in these inventories. Management plans to recover its investment in inventories through sales via the channels indicated above and through international markets. As of September 30, 2008, management had recorded a provision of $243,275 (December 31, 2007 - $243,275) in respect of its Med Reminder inventory. Further information on this provision is included in the notes to the Company's December 31, 2007 financial statements.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The alternate use of this inventory is limited and, accordingly, if management is not successful in its plans, further write-downs to its investment in inventories may be required in the near term. The outcome of this matter cannot be predicted at this time.</FONT></P>
<P align=justify><FONT size=2><B>4. Prepaid expenses and deposits</B></FONT></P>
<P align=justify><FONT size=2>The Company's prepaid expenses includes $38,000 prepaid commission expenses.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-6</FONT></P>
<P align=center><FONT size=2><BR>
</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-7-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<A name="page_8"></A>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 and 2007</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><BR>
5. Promissory notes payable</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>During the year ended December 31, 2007, the Company received a total of $75,000 from a non-related party in exchange for promissory notes payable. The promissory note is due on demand with interest at 1.0% per month and is unsecured. As further consideration, 300,000 options exercisable into common shares of the Company at an exercise price of $0.25 per share until May 31, 2017 were issued.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>During the nine months ended September 30, 2008, the Company entered into an agreement with a non-related party whereby the Company received a total $450,000 over a four-month period starting from March 2008 in exchange for promissory notes payable. The promissory note is due for repayment on September 30, 2009 with interest at 1.0% per month and is unsecured. As further consideration, 1,800,000 options exercisable into common shares of the Company at an exercise price of $0.25 per share until March 31, 2013 were issued. The stock-based compensation arising from this stock option has been estimated to be $104,534 and amortized as interest expenses over the loan period. As of September 30, 2008, the unamortized interest was $67,200.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>During the nine months ended September 30, 2008, a relative of a director repaid $68,000 to a loan holder and assumed the loan with the same terms at the rate of 1% per month repayable at demand without security. As further consideration, 272,000 options exercisable into common shares of the Company at an exercise price of $0.25 per share until September 29, 2013 were issued.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>During the nine month period ended September 30, 2008, a promissory note repayable in Canadian dollars to a director decreased by $10,352 due to favorable exchange rate changes with the United States dollars.</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="60%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="48%">&nbsp; </TD>
     <TD noWrap align=left width="7%">&nbsp; </TD>
     <TD noWrap align=right width="19%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT>&nbsp; </TD>
     <TD noWrap align=left width="6%">&nbsp; </TD>
     <TD noWrap align=right width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="48%">&nbsp; </TD>
     <TD noWrap align=left width="7%">&nbsp; </TD>
     <TD noWrap align=right width="19%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT>&nbsp; </TD>
     <TD noWrap align=left width="6%">&nbsp; </TD>
     <TD noWrap align=right width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="48%">&nbsp; </TD>
     <TD noWrap align=left width="7%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="19%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="6%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Audited)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="48%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest payable to:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="7%">&nbsp; </TD>
     <TD noWrap align=left width="19%">&nbsp; </TD>
     <TD noWrap align=left width="6%">&nbsp; </TD>
     <TD noWrap align=left width="18%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="48%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Relatives of directors</FONT>&nbsp; </TD>
     <TD noWrap align=right width="7%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="19%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,169,509</FONT>&nbsp; </TD>
     <TD noWrap align=right width="6%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>897,968</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="48%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Companies controlled by directors</FONT>&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="19%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,790</FONT>&nbsp; </TD>
     <TD noWrap align=right width="6%">&nbsp; </TD>
     <TD noWrap align=right width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,790</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="48%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directors</FONT>&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="19%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>78,572</FONT>&nbsp; </TD>
     <TD noWrap align=right width="6%">&nbsp; </TD>
     <TD noWrap align=right width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>71,729</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="48%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-related parties</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="19%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,190,339</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="6%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>966,976</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="98%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="48%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="19%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,444,210</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="6%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="18%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,942,463</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-7</FONT></P>
<P align=center><FONT size=2><BR>
</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-8-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<A name="page_9"></A>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=5><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Consolidated Financial Statements</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 and 2007</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT> </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Audited)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable to relatives of directors:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable to a relative of a director, secured by a general security</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>agreement bearing interest at the rate of 1% per month, due on demand</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,978,000</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,910,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable to a relative of a director, secured by a general security</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>agreement bearing interest at the rate of 1.25% per month, due on demand</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>251,347</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>251,347</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable to relatives of a director, secured by a general security</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>agreement bearing interest at the U.S. bank prime rate plus 1%, due on demand</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>500,000</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>500,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable, unsecured, from relatives of a director, bearing interest</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>at 0.625% per month, with $50,000 repayable on October 5, 2004 and $60,000</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>repayable on July 28, 2006, which did not occur; currently due on demand with</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The same interest rate</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>110,000</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>110,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable, unsecured, from relatives of a director, bearing interest</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>at 1% per month, due on demand</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>295,000</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>295,000</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,134,347</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,066,347</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable to directors:</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory note payable to a director, unsecured, bearing interest at 1% per</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>month, due on demand (Cdn $151,000)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>142,466</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>152,819</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>142,466</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>152,819</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable to unrelated parties:</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable, unsecured, bearing interest at 1% per month, with</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$50,000 repayable on December 31, 2004, which did not occur; currently all due</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>on demand with the same interest rate</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,136,500</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,186,500</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable, unsecured, bearing interest at 0.625% per month, with</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$40,000 repayable on December 31, 2004, which did not occur; currently all due</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>on demand with the same interest rate</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>40,000</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>40,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable, secured by a guarantee from a director and relative of a</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>director, bearing interest at 1% per month, with $200,000 repayable on July 31,</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2003, which did not occur; currently all due on demand</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>230,000</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>230,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory note payable, unsecured, non-interest bearing, repayable on July 17,</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>270,912</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>270,912</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2005, which did not occur; currently due on demand</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory note payable, unsecured, bearing interest at 1% per month, repayable on</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30, 2009</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>450,000</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="64%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,127,412</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,727,412</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total current promissory notes payable</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,404,225</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,946,578</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2><BR>
F-8</FONT></P>
<P align=center><FONT size=2><BR>
</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-9-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<A name="page_10"></A>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 and 2007</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT></P>
<P align=justify><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><BR>
6. Capital stock</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>a) Authorized share capital:</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>350,000,000 common shares with a par value of $0.001 per share</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>b) Stock options:</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Company accounts for its employee stock-based compensation arrangements in accordance with provisions of SFAS No. 123R &#147;Share Based Payments&#148;.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>During the nine months ended September 30, 2008, the Company granted 5,922,000 options. Of the total granted, 3,000,000 were granted with vesting conditions based on certain performance target. 2,072,000 options were granted and vested immediately in consideration of providing $518,000 loan to the Company. Compensation cost related to these options, being the fair value of the options, has been estimated to be $113,420 of which $46,220 has been charged to interest expense and $67,200 has been classified as deferred interest expenses. The balance of the 850,000 stock options were granted for services and vested immediately. Compensation costs related to these options, being the fair value of the options, have been estimated to be $143,791 and has been charged to product development costs. The weighted average per share fair value of these options issued in the period was $0.13. The fair value of the options was determined using the Black Scholes option pricing model, using the expected life of the options of 5 years, volatility factors of 188%, risk-free interest rates of 2.76% and no assumed dividend rate. The Company apply Nil forfeiture rate in calculating stock based compensation expenses.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>A summary of stock option activity is as follows:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="60%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="38%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="63%" colSpan=6><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="38%">&nbsp; </TD>
     <TD noWrap align=center width="15%">&nbsp; </TD>
     <TD noWrap align=center width="1%">&nbsp; </TD>
     <TD noWrap align=center width="5%">&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Weighted</FONT>&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Weighted</FONT>&nbsp; </TD>
     <TD noWrap align=center width="12%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="38%">&nbsp; </TD>
     <TD noWrap align=center width="15%">&nbsp; </TD>
     <TD noWrap align=center width="1%">&nbsp; </TD>
     <TD noWrap align=center width="5%">&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Average</FONT>&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Average</FONT>&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Aggregate</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="38%">&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Number of</FONT> </TD>
     <TD noWrap align=center width="1%">&nbsp; </TD>
     <TD noWrap align=center width="5%">&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Exercise</FONT>&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Lives</FONT>&nbsp; </TD>
     <TD noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Intrinsic</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="38%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Shares</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Price</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Remaining</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Value</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="101%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="38%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Outstanding, beginning of period</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>118,196,463</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2.18</FONT>&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nil</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="38%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Granted</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,922,000</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nil</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="38%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Expired</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(2,510,000</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="15%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nil</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="101%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="38%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Outstanding, end of period</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>121,608,463</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1.61</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nil</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="101%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="38%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Exercisable, end of period</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>94,083,463</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1.62</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nil</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value for in-the-money options, based on the $0.04 closing stock price of the Company&#146;s common stock on the NASDAQ over the counter market on September 30, 2008, which would have been received by the option holders had all option holders exercised their options as of that date. As of September 30, 2008, none of the stock options outstanding was in-the-money.</FONT></P>
<FONT size=2>
<P align=center><BR>
F-9</P>
</FONT>
<P align=center><BR>
-10-</P>
<P></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<A name="page_11"></A>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 and 2007</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><BR>
6. Capital stock (continued)</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>On May 17, 2007, the Company agreed to offer the certain optionees holding a total of 110,540,463 stock options to extend the expiry dates of the pertinent stock option agreements to May 17, 2017 subject to formal acceptance by optionees returning executed stock option agreements and extension agreements to the Company on or before August 31, 2007. However, the Company has decided to delay this offer until a later date when the Company has more financial resources.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Unvested options at September 30, 2008 consist of 27,525,000 options which will vest based on achieving certain sales and performance targets, including 19,250,000 to three directors and 250,000 to a relative of a director of the Company. Of the total unvested options, 2,000,000 were granted on February 15, 2000. Compensation cost related to the 25,525,000 unvested options granted between 2004 to 2008, which value is estimated to be $1,955,214 will be&nbsp;recorded in the period in which the sales or performance targets are achieved or probable of being achieved.</FONT></P>
<P align=justify><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>7. Contingency</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts payable and accrued liabilities as of September 30, 2008 includes $180,666 (December 31, 2007 -$180,666) of amounts owing to a supplier, which the Company is in the process of disputing. The outcome of this matter cannot be determined at this time. The gain on settlement of the account payable, if any, will be recorded in the period that an agreement with the supplier is reached and the amount becomes determinable.</FONT></P>
<P align=justify><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>8. Related party transactions</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Related party transactions for the nine months ended September 30, 2008 and 2007 included the following:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="60%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%">&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Product development costs</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directors and officers</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>45,000</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>45,000</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Relatives of directors</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,998</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Stock-based compensation in product development</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directors and officers</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>129,467</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Relative of a director</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,450</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest expense</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directors and officers</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10,550</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>18,370</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Relatives of directors</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>259,140</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>266,958</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Company controlled by a director</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,818</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Stock-based compensation in interest expense</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Relatives of directors</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,886</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Compensation</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directors and officers</FONT>&nbsp; </TD>
     <TD noWrap align=right width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>239,850</FONT>&nbsp; </TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>239,850</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="60%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Relatives of directors</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>27,000</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>27,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="60%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>719,893</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>621,444</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-10</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-11-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<A name="page_12"></A>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Consolidated Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended September 30, 2008 and 2007</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>8. Related party transactions (continued)</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>All transactions with related parties were incurred in the normal course of operations and measured at the exchange amount, which is the amount of considerations established and agreed upon by the transacting parties.</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest on promissory notes payable to related parties, management compensation and compensation paid to a relative of a director have been recorded at the exchange amount, which is the amount agreed to by the parties. Options granted to related parties have been recorded at their estimated fair value as disclosed note 6(b).</FONT></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="54%" colSpan=3><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>9. Reconciliation of net loss to net cash used in operating activities</FONT></B> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%"></TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended</FONT> </TD>
     <TD noWrap align=center width="1%">&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=center width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Nine Months Ended</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="26%" colSpan=4><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>September 30</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=left width="3%"></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net loss for the period</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(478,707</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)&nbsp;</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT size=2>$</FONT></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(377,847</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,403,243</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,190,019</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Add items not affecting cash:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Depreciation</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>306</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>425</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>916</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,275</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Foreign exchange on note payable</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(5,777</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>9,564</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(10,353</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>21,981</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Stock-based compensation:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Product development</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>143,791</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>47,391</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>25,686</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>46,220</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,458</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Selling, general and administration</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>39,838</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-cash working capital items:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=left width="11%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Receivable and advances</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>33,580</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,542</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,973</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,480</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Inventories</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>79,593</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(3,353</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>58,619</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(15,656</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Prepaid expenses</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(37,828</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(40,128</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,498</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts payable and accrued liabilities</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>289,146</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>395,822</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>753,902</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,019,502</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Customer deposit</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(25,597</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(25,597</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=13>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="40%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(94,001</FONT> </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)&nbsp;</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT size=2>$</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>556</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(448,303</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(81,849</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-11</FONT></P>
<P align=center><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-12-</FONT></P>
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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL </FONT></B><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CONDITION AND RESULTS OF OPERATIONS</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Forward Looking Statements</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The following information must be read in conjunction with the unaudited Financial Statements and Notes thereto included in Item 1 of this Quarterly Report and the audited Consolidated Financial Statements and Notes thereto and Management's Discussion and Analysis or Plan of Operations contained in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2007. Except for the description of historical facts contained herein, the Form 10Q contains certain forward-looking statements concerning future applications of the Company's technologies and the Company's proposed services and future prospects, that involve risk and uncertainties, including the possibility that the Company will: (i) be unable to commercialize services based on its technology, (ii) ever achieve profitable operations, or (iii) not receive additional financing as required to support future operations, as detailed herein and from time to time in the Company's future filings with the Securities and Exchange Commission and elsewhere. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Critical Accounting Policies</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results may differ from these estimates under different assumptions or conditions. We believe the accounting polices that are most critical to our financial condition and results of operations and involve management's judgment and/or evaluation of inherent uncertain factors are as follows:</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Basis of Presentation. </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The financial statements have been prepared on the going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of operations. If the Company were not to continue as a going concern, it would likely not be able to realize on its assets at values comparable to the carrying value or the fair value estimates reflected in the balances set out in the preparation of the financial statements. As described in note 1 to the interim financial statements, at September 30, 2008, there are certain conditions that exist which raise substantial doubt about the validity of this assumption. The Company's ability to continue as a going concern is dependent upon continued financial support of its creditors and its ability to obtain financing to repay its current obligations and fund working capital and its ability to achieve profitable operations. The Company will seek to obtain creditors consent to delay repayment of its outstanding promissory notes payable until it is able to replace this financing with funds generated from operations, replacement debt or from equity financing through private placements or the exercise of options and warrants. While the Company's creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. Management plans to obtain financing through the issuance of additional debt, the issuance of shares on the exercise of options and warrants and through future common share private placements. Management hopes to realize sufficient sales in future years to achieve profitable operations. Failure to achieve management's plans may result in the Company curtailing operations or writing assets and liabilities down to liquidation values, or both.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-13-</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp; <B><I>Prepaid expenses and deposits.</I></B>&nbsp;Prepaid expenses and deposits primarily consists of prepaid commission expenses for market development purposes.</P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Inventories. </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Inventories are recorded at the lower of cost, determined on a weighted average cost basis, and net realizable value. Net realizable value reflects the current estimated net selling price or value in use of the item in inventory in a non-forced sale. The Company assesses the need for inventory write-downs based on its assessment of the estimated net realizable value using assumptions about future demand and market conditions. When the results of these assumptions differ from the Company's projections, an additional inventory write-down may be required.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Revenue recognition. </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company recognizes sales revenue at the time of delivery when title has transferred to the customer, persuasive evidence of an arrangement exists, the fee is fixed and determinable and the sales proceeds are collectible. Provisions are recorded for product returns based on historical experience. Sales revenue, in transactions for which the Company does not have sufficient historical experience, is recognized when the return privilege period has expired. Changes in sales terms could materially impact the extent and timing of revenue recognition.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Stock-Based Compensation. </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company follows the provisions of SFAS 123(R), &#147;Share-Based Payment&#148;. The fair value of options at the date of grant was estimated using the Black-Scholes option pricing model. The Company took into consideration guidance under SFAS 123(R) and SEC Staff Accounting Bulletin No. 107 (SAB 107) when reviewing and updating assumptions. The expected option life is derived from assumed exercise rates based upon historical exercise patterns and represents the period of time that options granted are expected to be outstanding. The expected volatility is based upon historical volatility of our shares using daily price observations over an observation period of five years. The risk-free rate is based on the U.S. treasury rate in effect at the time of grant for periods similar to the expected option life. Due to the Company&#146;s history with respect to forfeitures of incentive stock options, the estimate of expired or cancelled options included in the above option valuation was zero.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Valuation of Long-lived Assets </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company assesses the potential impairment of long-lived tangible and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Changes in the operating strategy can significantly reduce the estimated useful life of such assets.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Results of Operations</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Management is focusing the majority of its efforts on introducing and marketing the HealthEConnect health management platform and its diabetes management system to the healthcare industry. A health services company based in Georgia has been signed on and has successfully gained customer commitments to implement the HealthEConnect diabetes management system. Corporations that are self-insured are being targeted due to the potential benefits they can achieve with the ALRT HealthEConnect and CHC system. Expected results are better health outcome with their employees and dependents along with lower cost of care for these targeted individuals with diabetes.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company is first targeting customers located in United States and in Canada. Pilot programs have been established in each and with pilot outcome results now becoming available, extensive selling activities are being planned for 4</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">th </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Quarter 2008.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Sales revenue </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">was $1,988 in the quarter ended September 30, 2008 as compared to $1,526 in the quarter ended September 30, 2007. The increase in sales was $462 due to seasonal fluctuation.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-14-</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the nine months ended September 30, 2008, sales revenue was $10,926 as compared to $137,096 for the same nine month period last year. The decrease in sales was mainly due to the Company's fine-tuning of the HealthEConnect healthcare management software platform and the need for detailed coordination of software protocols from the various diagnostic equipment such as glucometers necessary for remote monitoring through the ALRT HealthEConnect. The Company has also waited for pilot program results prior to rollout of extensive sales activities.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Development costs </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">were $46,500 for the quarter ended September 30, 2008 as compared with $21,568 for the quarter ended September 30, 2007. Development costs incurred during the third quarter of 2008 related to the allocation of additional programming resources required for the development of the ALRT500 LCD (Liquid Crystal Display) Med Reminders and the ALRT Interactive Response System (AIRS).</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the nine months ended September 30, 2008, development costs were $283,836 as compared to $174,657 for the same nine month period last year. Development costs incurred during the nine months of 2008 related to the allocation of additional programming resources required for the development of the ALRT500 LCD (Liquid Crystal Display) Med Reminders and the ALRT Interactive Response System (AIRS). Development costs for the nine months ended September 30, 2008 and 2007 include $143,791 and $87,229, respectively, of stock-based compensation recognized in the period.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Interest expense </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">was $203,992 for the quarter ended September 30, 2008 as compared with $169,852 for the quarter ended September 30, 2007. The amount for the current quarter included $8,886 relating to options issued in exchange for $68,000 loan received during the period from May to September 2008, which loan was without terms of repayment.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the nine months ended September 30, 2008, interest expense was $557,704 as compared to $517,903 for the same nine month period last year. The amount for the current period included $113,420 relating to options issued in exchange for $518,000 loan received during the period from March to September 2008, which loan $450,000 was due for repayment on September 30, 2009 and the balance was without terms of repayment. The Company continues to rely on debt financing and extensions on debt obligations.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Professional fees </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">were $16,522 for the quarter ended September 30, 2008 as compared with $15,020 for the quarter ended September 30, 2007. Fees were slightly higher due to accounting and audit services obtained in the quarter.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the nine months ended September 30, 2008, professional fees were $52,312 as compared to $54,228 for the same nine month period last year. Fees were lower primarily due to lesser accounting and audit services obtained in the period.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">The selling, general and administrative expenses </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">were $205,918 for the quarter ended September 30, 2008 as compared to $144,649 for the quarter ended September 30, 2007. The increase relates primarily to sample costs incurred during the current quarter.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the nine months ended September 30, 2008, selling, general and administrative expenses were $489,297 as compared to $495,856 for the same nine month period last year. The decrease relates primarily to lower investor relations activities during the current period.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-15-</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Net loss </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of $478,707 for the quarter ended September 30, 2008 increased from a loss of $377,847 for the same quarter in 2007 mainly due to increase in interest, product development costs, and selling, general and administration expenses. The largest component of this decrease was the selling, general and administration expenses.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the nine months ended September 30, 2008, net loss was $1,403,243 as compared to $1,190,019 for the same nine month period last year. The largest component of this increase was the stock-based compensation relating to product development and loan activities.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Liquidity and Capital Resources</FONT></B></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Cash Balances and Working Capital</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">As of September 30, 2008, the Company's cash balance was $22,670 compared to $2,973 as of December 31, 2007. As of September 30 2008, the Company had a working capital deficiency of $11,985,973 as compared to a working capital deficiency of $10,773,657 as of December 31, 2007.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Short and Long Term Liquidity</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">As of September 30, 2008, the Company does not have the current financial resources and committed financing to enable it to meet its overheads, purchase commitments and debt obligations over the next 12 months.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">All of the Company's debt financing is either due on demand or has a maturity date of less than one year. The Company will seek to obtain creditors' consents to delay repayment of these loans until it is able to replace these financings with funds generated by operations, replacement debt or from equity financings through private placements or the exercise of options and warrants. While the Company's creditors have agreed to extend repayment deadlines in the past, there is no assurance that they will continue to do so in the future. Failure to obtain either replacement financing or creditor consent to delay the repayment of existing financing could result in the Company having to curtail operations.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Cash Provided by (Used in) Operating Activities</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Cash used by the Company in operating activities during the quarter was $94,001 in comparison with $556 generated during the same quarter last year. The increase was mainly due to increased payments to suppliers during the current quarter.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">For the nine months ended September 30, 2008, cash used in operating activities was $448,303 in comparison with $81,849 for the same nine month period in 2007. The increase was mainly due to lower cash received from the customers during the current period and increased payments to suppliers.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Cash Proceeds from Financing Activities</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">During the quarter ended September 30, 2008, the Company received $18,000 loan from a relative of a director as compared to $Nil in the nine-month period of 2007.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-16-</FONT></P>
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<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">During the nine months ended September 30, 2008, the Company received a total of $518,000 loan from a non-related party plus $68,000 from a relative of a director as compared to $75,000 in the nine-month period of 2007 from a relative of a director. The Company repaid $50,000 loan to a non-related party during the period.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Off Balance Sheet Arrangement</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company has no off balance sheet financing arrangements that have or are reasonably likely to have a current or future effect on the Company&#146;s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources, that is material to investors.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp; QUANTITATIVE AND QUALITATIVE DISCLOSURE OF MARKET RISK</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp; CONTROLS AND PROCEDURES.</FONT></B></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Evaluation of Disclosure Controls and Procedures</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Under the supervision and with the participation of the Company&#146;s management, including the principal executive officer and principal financial officer, as of the end of the period covered by this report, the Company conducted an evaluation of the effectiveness of the design and operation of the Company&#146;s disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;). The Company&#146;s disclosure controls and procedures are designed to provide reasonable assurance that the information required to be included in the Company&#146;s reports to Securities and Exchange Commission (&#147;SEC&#148;) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms relating to ALR Technologies Inc., including the Company&#146;s consolidated subsidiaries, and was made known to them by others within those entities, particularly during the period when this report was being prepared. Based on this evaluation, the Company&#146;s principal executive officer and principal financial officer concluded that, as of the period covered by this report, the Company&#146;s disclosure controls and procedures are effective at these reasonable assurance levels.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Changes in Internal Controls over Financial Reporting</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">In connection with the evaluation required by paragraph (d) of Rule 13a-15 under the Exchange Act, there was no change identified in the Company&#146;s internal control over financial reporting that occurred during the last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company&#146;s internal control over financial reporting.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-17-</FONT></P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PART II</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 1A.&nbsp; RISK FACTORS</FONT></B><BR>
&nbsp;<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp; We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1934 and are not required to provide the information under this item.</FONT><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp; EXHIBITS</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp; The following Exhibits are attached hereto:</FONT></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibit No.</FONT></B>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Description</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">31.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="86%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certification of Principal Executive and Principal Financial Officer pursuant Section 202</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="13%">&nbsp; </TD>
     <TD noWrap align=left width="86%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the Sarbanes-Oxley Act of 2002.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">32.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="86%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certification of Chief Executive and Chief Financial Officer pursuant Section 906 of the</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="13%">&nbsp; </TD>
     <TD noWrap align=left width="86%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sarbanes-Oxley Act of 2002.</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-18-</FONT></P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SIGNATURES</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 13</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">th </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">day of November, 2008.</FONT></P>
<P style="MARGIN-LEFT: 500px" align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Registrant)</FONT><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BY:&nbsp; &nbsp;</FONT><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">SIDNEY CHAN</FONT></U><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sidney Chan</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President, Principal Executive Officer,</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Principal Accounting Officer, Principal</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Officer, Secretary/Treasurer and a</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; member of the Board of Directors</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-19-</FONT></P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">EXHIBIT INDEX</FONT></B></P>
<P>&nbsp;</P>
<P>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="13%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibit No.</FONT></B>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="86%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Description</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">31.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="86%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certification of Principal Executive and Principal Financial Officer pursuant Section 202</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="13%">&nbsp; </TD>
     <TD noWrap align=left width="86%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of the Sarbanes-Oxley Act of 2002.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="13%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">32.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="86%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certification of Chief Executive and Chief Financial Officer pursuant Section 906 of the</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="13%">&nbsp; </TD>
     <TD noWrap align=left width="86%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sarbanes-Oxley Act of 2002.</FONT>&nbsp; </TD></TR></TABLE><BR>
</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-20-</FONT></P>
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<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>exh311.htm
<DESCRIPTION>SARBANES-OXLEY 302 CERTIFICATION.
<TEXT>

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   <TITLE>Exhibit 31.1 - Sarbanes-Oxley 302 Certification for Principal Executive and Principal Financial Officer.</TITLE>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exhibit 31.1</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SARBANES-OXLEY SECTION 302(a) CERTIFICATION</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">I, Sidney Chan, certify that:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">1.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%" colSpan=2>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">I have reviewed this Form 10-Q for the period ending September 30, 2008 of ALR Technologies Inc.;</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap rowSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2.</FONT></TD>
     <TD width="100%" colSpan=2 rowSpan=3>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state&nbsp;</FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">material fact necessary to make the statements made, in light of the circumstances under which such </FONT><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">statements were made, not misleading with respect to the period covered by this report;</FONT></P>
</TD></TR>
<TR></TR>
<TR></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%" colSpan=2>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">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>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%" colSpan=2>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant is made known to me by others within this entity, particularly during the period in which this report is being prepared;</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">b.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my 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 principles;</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">c.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my 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>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">d.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting.</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">5.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%" colSpan=2>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">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's ability to record, process, summarize and report financial information; and</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR>
<TR>
     <TD>&nbsp;</TD>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">b.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=3>&nbsp;</TD></TR></TABLE>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="29%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">November 13, 2008</FONT>&nbsp; </TD>
     <TD noWrap align=left width="64%"><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">SIDNEY CHAN</FONT></U>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sidney Chan</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="29%">&nbsp; </TD>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Principal Executive Officer and Principal Financial Officer</FONT>&nbsp; </TD></TR></TABLE></DIV>
<P>&nbsp;</P>
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<TYPE>EX-32.1
<SEQUENCE>3
<FILENAME>exh321.htm
<DESCRIPTION>SARBANES-OXLEY 906 CERTIFICATION.
<TEXT>

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   <TITLE>Exhibit 32.1 - Sarbanes-Oxley 906 for Chief Executive and Chief Financial Officer.</TITLE>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exhibit 32.1</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">CERTIFICATION PURSUANT TO</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">18 U.S.C. Section 1350,</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">AS ADOPTED PURSUANT TO</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">In connection with the Quarterly Report of </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ALR Technologies Inc. </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(the "Company") on Form 10-Q for the period ended </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">September 30, 2008 </FONT></B><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">as filed with the Securities and Exchange Commission on the date here of (the "report"), I, </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Sidney Chan</FONT></B><FONT face="TimesNewRomanPSMT,Times New &#13;&#10;Roman,Times,serif">, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
     <TD width="100%">
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR>
<TR>
     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.</FONT>&nbsp; &nbsp; &nbsp; </TD>
     <TD width="100%">
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</FONT></P>
</TD></TR>
<TR>
     <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dated this 13</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">th </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">day of November, 2008.</FONT></P>
<DIV align=right>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>
<TR vAlign=bottom>
     <TD align=left width="100%"><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">SIDNEY CHAN</FONT></U>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sidney Chan, Chief Executive Officer and</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD align=left width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer</FONT>&nbsp; </TD></TR></TABLE></DIV>
<P>&nbsp;</P>
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<P>&nbsp;</P>
<P>&nbsp;</P>
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