<SUBMISSION>
<ACCESSION-NUMBER>0001002014-08-000415
<TYPE>10QSB
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20080331
<FILING-DATE>20080515
<DATE-OF-FILING-DATE-CHANGE>20080515
<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>10QSB
<ACT>34
<FILE-NUMBER>000-30414
<FILM-NUMBER>08839206
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>114M REYNOLDA VILLAGE
<CITY>WINSTON-SALEM
<STATE>NC
<ZIP>27106
<PHONE>(336) 722-2254
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>114M REYNOLDA VILLAGE
<CITY>WINSTON-SALEM
<STATE>NC
<ZIP>27106
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>alrti10qsb33108.htm
<DESCRIPTION>ALR TECHNOLOGIES INC. FORM 10-QSB (3-31-08).
<TEXT>

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   <TITLE>ALR TECHNOLOGIES INC. Form 10-QSB (3-31-08).</TITLE>
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<A name="page_1"></A>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif"></FONT>&nbsp;</P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">=============================================================================================================</FONT></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, DC 20549</FONT></B><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">FORM 10-QSB</FONT></B></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="4%"><FONT face=Wingdings>x</FONT>&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 Exchange Act of 1934</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">FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2008</FONT></B>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="4%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">OR</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="95%">&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="4%"><FONT face=Wingdings>&#168;</FONT>&nbsp;</TD>
     <TD noWrap align=left width="95%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</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">For the transition period from to</FONT></B>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Commission File Number 0-30414</FONT></B><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=4>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Exact name of registrant as specified in its charter)</FONT><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">NEVADA</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(State of other jurisdiction of incorporation or organization)</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">114M Reynolda Village</FONT></B><BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Winston-Salem, North Carolina 27106</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Address of principal executive offices)</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">(336) 722-2254</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Registrant's telephone number, including area code)</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Yes <FONT face=Wingdings>x </FONT>&nbsp;No <FONT face=Wingdings>&#168;</FONT></FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of May 7, 2008: </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New &#13;&#10;Roman,Times,serif">76,078,446.</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Registrant is a Shell company. </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Yes <FONT face=Wingdings>&#168; </FONT>&nbsp;No <FONT face=Wingdings>x</FONT></FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">=============================================================================================================</FONT></P>
<P align=left>&nbsp;</P>
<P align=left>&nbsp;</P>
<HR align=center width="100%" noShade SIZE=2>

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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">PART I. FINANCIAL INFORMATION</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp; INTERIM FINANCIAL STATEMENTS</FONT></B></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Interim Balance Sheets</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">($ United States)</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR>
     <TD style="BORDER-TOP: #000000 2pt double" noWrap align=left width="64%">&nbsp; </TD>
     <TD style="BORDER-TOP: #000000 2pt double" noWrap align=left width="4%">&nbsp; </TD>
     <TD style="BORDER-TOP: #000000 2pt double" noWrap align=center width="13%" colSpan=2>&nbsp; </TD>
     <TD style="BORDER-TOP: #000000 2pt double" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-TOP: #000000 2pt double" noWrap align=center width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>March 31</FONT>&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31</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=left width="4%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><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="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Audited)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Assets</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Current assets:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash</FONT>&nbsp; </TD>
     <TD noWrap align=right width="4%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>413</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,973</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts receivable, net of allowance of $2,530</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp; (December 31, 2007 - $2,530)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,053</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,221</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Inventories (note 3)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>100,919</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>78,922</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&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>Prepaid expenses and deposits</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>100</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>106,485</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>86,116</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Equipment, net of accumulated depreciation</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,174</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,480</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&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>Deferred interest expenses</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>100,800</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="64%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>211,459</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>90,596</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Liabilities and Shareholders' Deficiency</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Current liabilities:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts payable and accrued liabilities</FONT>&nbsp; </TD>
     <TD noWrap align=right width="4%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,148,843</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,119,545</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Payroll payable</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>22,352</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>18,458</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest payable (note 7)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,103,359</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,942,463</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Advances payable (note 7)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,983,304</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,832,729</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&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>Promissory notes payable - current portion (notes 4 and 7)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,940,660</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,946,578</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>11,198,518</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10,859,773</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&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>Promissory notes payable (notes 4 and 7)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>60,000</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></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=left width="4%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>11,258,518</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10,859,773</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>Shareholders' deficiency</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Capital stock (note 5)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>350,000,000 common shares with a par value of $0.001 per share authorized</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 76,078,446 issued</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(December 31, 2007 - 76,078,446)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Additional paid-in capital</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>13,199,560</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,951,235</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&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>Deficit</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(24,322,697</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(23,796,490</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&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=left width="4%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(11,047,059</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(10,769,177</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="64%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>211,459</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="13%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>90,596</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&nbsp; </TD></TR>
<TR>
     <TD width="96%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Basis of presentation (Note 1)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Commitments (Note 4)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Contingency (Note 6)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Related party transactions (Notes 4 and 7)</FONT>&nbsp; </TD>
     <TD noWrap align=left width="4%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=center width="13%" colSpan=2>&nbsp; </TD></TR></TABLE></DIV>
<P align=center><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>See accompanying notes to interim financial statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-1</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-2-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=7><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">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">Interim Statement of Loss and Deficit</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">($ United States)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Three Months Ended March 31, 2008 and 2007</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="100%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Unaudited)</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 style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%">&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="16%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</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="16%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%"><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=right width="16%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Sales</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,739</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>114,764</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>28</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,786</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,711</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>108,978</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%"><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=right width="16%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>306</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>425</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>190,814</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>54,186</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(6,776</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,259</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>168,396</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>166,480</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,280</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>16,503</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>13,189</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>9,507</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>147,709</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>159,471</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="62%">&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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>527,918</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>408,831</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%"><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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(526,207</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(299,853</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(23,796,490</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(22,216,984</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deficit, end of period</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>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(24,322,697</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(22,516,837</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&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 style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="62%"><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=right width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(0.01</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="62%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Weighted average shares</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="16%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="62%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Outstanding - 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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></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="16%" colSpan=2><FONT style="WIDTH: 49pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078,446</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></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">See accompanying notes to interim financial statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">F-2</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-3-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<A name="page_4"></A>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD align=center width="93%" colSpan=12><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ALR TECHNOLOGIES INC.</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="93%" colSpan=12><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Interim Statement of Shareholders' Deficiency and Comprehensive Loss</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="93%" colSpan=12><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">($ United States)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="93%" colSpan=12><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Three Months Ended March 31, 2008 and Year Ended December 31, 2007</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" align=center width="93%" colSpan=12><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Unaudited)</FONT> </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accumulated</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; </TD>
     <TD noWrap align=center width="20%" colSpan=3><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Capital Stock</FONT></U>&nbsp; </TD>
     <TD noWrap align=right width="2%">&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=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Other</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total</FONT> </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Number</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&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=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Comprehensive</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Shareholders'</FONT> </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="23%">&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> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><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="2%">&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=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deficit</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Income</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Deficiency</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><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> </TD>
     <TD noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="7%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT>&nbsp; </TD>
     <TD noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</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="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (22,216,984</FONT> </TD>
     <TD noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)&nbsp;&nbsp;$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>37,164</FONT> </TD>
     <TD noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(9,252,194</FONT> </TD>
     <TD noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Financing cost of stock options</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>issued in consideration of</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>promissory notes payable</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>non-related parties</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&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="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,458</FONT>&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,458</FONT> </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Compensating cost of stock</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>options issued or vested for</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Services:</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>non-related parties</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&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="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>39,838</FONT>&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>39,838</FONT> </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Compensating cost of stock</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>options issued for product</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Development:</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>non-related parties</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&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="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>47,391</FONT>&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>47,391</FONT> </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Write-off accumulated other</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>income</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(37,164</FONT> </TD>
     <TD noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(37,164</FONT> </TD>
     <TD noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="23%"><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> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&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="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="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="9%"><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="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><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> </TD>
     <TD noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="7%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT>&nbsp; </TD>
     <TD noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>12,951,235</FONT>&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (23,796,490</FONT> </TD>
     <TD noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)&nbsp; $</FONT>&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-&nbsp;</FONT> </TD>
     <TD noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(10,769,177</FONT> </TD>
     <TD noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Financing cost of stock options</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>issued in consideration of</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>promissory notes payable:</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>non-related parties</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&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="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>104,534</FONT>&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>104,534</FONT> </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Compensating cost of stock</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>options issued for product</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>development</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>director</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="7%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>129,467</FONT>&nbsp; </TD>
     <TD noWrap align=right width="10%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%">&nbsp; </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>129,467</FONT> </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="23%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>non-related parties</FONT>&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&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="2%">&nbsp; </TD>
     <TD noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,324</FONT>&nbsp; </TD>
     <TD noWrap align=right width="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD noWrap align=right width="2%">&nbsp; </TD>
     <TD noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>14,324</FONT> </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="23%"><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> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="7%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&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="10%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(526,207</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="12%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(526,207</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="93%" colSpan=12>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="23%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Balance, March 31, 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> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="7%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>76,078</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="11%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>13,199,560</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>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (24,322,697</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)&nbsp; $</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>- $</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="9%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(11,047,059</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR></TABLE><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">See accompanying notes to interim financial statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">F-3</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-4-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

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<A name="page_5"></A>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD align=center width="99%" colSpan=7><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ALR TECHNOLOGIES INC.</FONT></B> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="99%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Interim Statement of Cash Flows</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="99%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">($ United States)</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="99%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Three Months Ended March 31, 2008 and 2007</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD align=center width="99%" colSpan=7><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Unaudited)</FONT> </TD></TR>
<TR>
     <TD style="BORDER-BOTTOM: #000000 2pt double" width="99%" colSpan=7>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="33%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>March 31</FONT>&nbsp; </TD>
     <TD noWrap align=center width="15%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%">&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="15%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</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="15%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><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=right width="15%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash received from customers</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>907</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>107,131</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash paid to suppliers and employees</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(59,701</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(113,087</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest paid</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="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(3,766</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(2,846</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net cash used in operating activities</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="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(62,560</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(8,802</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash flows from financing activities:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Bank indebtedness</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>385</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable</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="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>60,000</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></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="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%"><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=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>60,000</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></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="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>385</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Increase (decrease) in cash during the period</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(2,560</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(8,417</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Cash, beginning of</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="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,973</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></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="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,417</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="63%"><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=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>413</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%" colSpan=2>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-cash financing activities:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Financing cost of stock options</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>issued in consideration for</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>promissory notes payable</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,734</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Compensation cost of</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>stock options issued</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="63%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>for services</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="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>143,791</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></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="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="63%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>147,525</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></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">See accompanying notes to interim financial statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">F-4</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-5-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<!--$$/page=-->
<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 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>Three Months Ended March 31, 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>These financial statements have been prepared in accordance with U.S. generally accepted accounting principles 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><BR>
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=justify><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">F-5</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-6-</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<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 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>Three Months Ended March 31, 2008 and 2007</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)</FONT></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2><BR>
(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><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><BR>
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 March 31, 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 March 31, 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><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><BR>
4. 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 (see note 5(b)).</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>During the three months ended March 31, 2008, the Company entered into an agreement with a non-related party whereby the Company will receive a total $450,000 over a four-month period starting from March 2008 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, 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 (see note 5(b)). In March 2008, the Company received $60,000 under this agreement.</FONT></P>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-6</FONT></P>
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<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-7-</FONT></P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended March 31, 2008 and 2007</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(Unaudited)<BR>
</FONT></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="100%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>During the three month period ended March 31, 2008, a promissory note repayable in Canadian dollars to a director</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="69%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>decreased by $5,917 due to favorable exchange rate changes with the United States dollars.</FONT>&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>March 31</FONT> </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT> </TD>
     <TD noWrap align=left width="2%">&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 vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,910,000</FONT> </TD>
     <TD noWrap align=left width="2%"><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>1,910,000</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>251,347</FONT> </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>500,000</FONT> </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>the same interest rate</FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>110,000</FONT> </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>295,000</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&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="67%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,066,347</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable to directors:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>146,901</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&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="67%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>146,901</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Promissory notes payable to unrelated parties:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>on demand with the same interest rate</FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,186,500</FONT> </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>on demand with the same interest rate</FONT>&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>40,000</FONT> </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>230,000</FONT> </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>270,912</FONT> </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="15%">&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="67%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,727,412</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&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 vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="67%">&nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Total current promissory notes payable</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,940,660</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,946,578</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="67%">&nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD noWrap align=left width="14%">&nbsp; </TD>
     <TD noWrap align=left width="2%">&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="67%">&nbsp; &nbsp; &nbsp;<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=left width="2%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>60,000</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%">&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 2pt double" noWrap align=left width="67%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>6,000,660</FONT> </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="2%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,946,578</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-7</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-8-</FONT></P>
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<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended March 31, 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. Capital stock</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>a) Authorized share capital:</FONT></P>
<P align=left><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=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>b) Stock options:</FONT></P>
<P align=justify><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 three months ended March 31, 2008, the Company irrevocably committed to grant 5,650,000 options. Of the total granted, 3,000,000 were granted with certain vesting conditions. 1,800,000 options were granted and vested in consideration of providing $450,000 loan to the Company. Compensation cost related to these options, being the fair value of the options, has been estimated to be $104,534 of which $3,734 were charged to interest expense and $100,800 were charged to deferred interest expense. 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 of which $129,467 has been charged to product development costs and $14,324 to selling, general and administrative expense. The weighted average per share fair value of these options issued in the period was $0.14. 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 187%, risk-free interest rates of 2.76% and no assumed dividend rate.</FONT></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The Company has irrevocably committed to grant options to purchase common shares of the Company as follows:</FONT></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="70%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="37%">&nbsp; </TD>
     <TD noWrap align=center width="31%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended</FONT>&nbsp; </TD>
     <TD noWrap align=center width="32%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Year Ended</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="37%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="31%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>March 31, 2008</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="32%" colSpan=3><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>December 31, 2007</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="37%">&nbsp; </TD>
     <TD noWrap align=center width="14%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Weighted</FONT>&nbsp; </TD>
     <TD noWrap align=center width="14%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Weighted</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="37%">&nbsp; </TD>
     <TD noWrap align=center width="14%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Average</FONT>&nbsp; </TD>
     <TD noWrap align=center width="14%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Average</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="37%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Number of</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Exercise</FONT>&nbsp; </TD>
     <TD noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Number of</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Exercise</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="37%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>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=center width="14%"><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="14%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>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=center width="15%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Price</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="37%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Outstanding, beginning of period</FONT>&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT style="WIDTH: 51pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>118,196,463</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT style="WIDTH: 18pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT style="WIDTH: 51pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>115,876,463</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT style="WIDTH: 18pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="37%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Granted</FONT>&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT style="WIDTH: 51pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>5,650,000</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT style="WIDTH: 18pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD noWrap align=right width="14%"><FONT style="WIDTH: 51pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2,900,000</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="15%"><FONT style="WIDTH: 18pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="37%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Expired or cancelled</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT style="WIDTH: 51pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(1,465,000</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="14%"><FONT style="WIDTH: 18pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="14%"><FONT style="WIDTH: 51pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>( 580,000</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" 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="15%"><FONT style="WIDTH: 18pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="37%"><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="14%"><FONT style="WIDTH: 51pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>122,381,463</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center 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="14%"><FONT style="WIDTH: 18pt; TEXT-ALIGN: right" 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="14%"><FONT style="WIDTH: 51pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>118,196,463</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left 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 style="WIDTH: 18pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>The number of options outstanding and exercisable and the remaining contractual lives (in years) of the options at March 31, 2008 were as follows:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="97%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Options Outstanding</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="25%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Number of</FONT>&nbsp; </TD>
     <TD noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Contractual</FONT>&nbsp; </TD>
     <TD noWrap align=right width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Number of</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=left width="25%">&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Options</FONT>&nbsp; </TD>
     <TD noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Lives</FONT>&nbsp; </TD>
     <TD noWrap align=right width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Options</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <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="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Exercise Price</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Outstanding</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Remaining</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Exercisable</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="97%" colSpan=5>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.25</FONT>&nbsp; </TD>
     <TD noWrap align=right width="24%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>122,381,463</FONT>&nbsp; </TD>
     <TD noWrap align=right width="25%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>0.01 to 9.17</FONT>&nbsp; </TD>
     <TD noWrap align=right width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>94,856,463</FONT>&nbsp; </TD></TR></TABLE><BR>
<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 have the expiry dates of the pertinent stock option agreements to May 17, 2017 subject to formal acceptance by optionees by 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.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-8</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-9-</FONT></P>
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<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 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>Three Months Ended March 31, 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. Capital stock (continued)</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Unvested options at March 31, 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. Compensation cost related to the unvested options is recorded over the service period or 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><BR>
6. Contingency</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts payable and accrued liabilities as of March 31, 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><BR>
7. Related party transactions</FONT></B></P>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Related party transactions for the three months ended March 31, 2008 and 2007 included the following:</FONT></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="60%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%">&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="21%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=6>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Financing cost related to vested options</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="20%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>issued in consideration of services:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="20%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directors and officers</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>129,467</FONT>&nbsp;&nbsp; </TD>
     <TD noWrap align=right width="3%"><FONT style="WIDTH: 6pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT></TD>
     <TD noWrap align=right width="20%"><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=6>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%"><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="21%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="20%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directors and officers</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>4,686</FONT><FONT style="WIDTH: 6pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="20%"><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>7,357</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Relatives of directors</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>86,246</FONT><FONT style="WIDTH: 6pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="20%"><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>88,128</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=6>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Compensation</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="20%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Directors and officers</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>94,950</FONT><FONT style="WIDTH: 6pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="20%"><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>94,950</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="53%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Relatives of directors</FONT>&nbsp; </TD>
     <TD noWrap align=left width="3%">&nbsp; </TD>
     <TD noWrap align=right width="21%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>9,000</FONT><FONT style="WIDTH: 6pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=right width="3%"></TD>
     <TD noWrap align=right width="20%"><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>10,098</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="53%">&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="21%" colSpan=2>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="20%"><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="100%" colSpan=6>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="53%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left 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="21%" colSpan=2><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>324,349</FONT>&nbsp;&nbsp;</TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT style="WIDTH: 6pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="20%"><FONT style="WIDTH: 33pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>200,533</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>All transactions with related parties were incurred in the normal course of operations and measured at the exchange amount, which is the amount of considerations established and agreed upon by the transacting parties.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2></FONT>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>F-9</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-10-</FONT></P>
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<A name="page_11"></A>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2>ALR TECHNOLOGIES INC.</FONT></B><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Notes to Interim Financial Statements</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>($ United States)</FONT><BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended March 31, 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>
7. Related party transactions (continued)</FONT></B></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 irrevocably committed to related parties have been recorded at their estimated fair value as disclosed note 5(b).</FONT></P>
<DIV align=left>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><BR>
8. Reconciliation of net loss to net cash used in operating activities</FONT></B>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=center width="18%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="16%">&nbsp; </TD></TR>
<TR>
     <TD width="101%" colSpan=7>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=center width="36%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Three Months Ended</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="36%" colSpan=5><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>March 31</FONT></TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </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="18%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2008</FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>2007</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Net loss for the period</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(526,207)&nbsp;&nbsp;&nbsp;</FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"><FONT style="WIDTH: 11pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(299,853</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Add items not affecting cash:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Depreciation</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>306</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>425</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Foreign exchange on note payable</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(5,918</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>1,394</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Compensation cost of options</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; &nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>product development</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>143,791</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Financing of option issued in consideration</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>&nbsp;&nbsp;&nbsp; for promissory notes payable</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,734</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Non-cash working capital items:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%">&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Receivable and advances</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(832</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(7,633</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Inventories</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(21,997</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>8,231</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Prepaid expenses and deposits</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(100</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>3,498</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Accounts payable and accrued liabilities</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>38,406</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>42,887</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Payroll payable</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(5,214</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>-</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Interest payable</FONT>&nbsp; </TD>
     <TD noWrap align=left width="1%">&nbsp; </TD>
     <TD noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>160,896</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=center width="1%"></TD>
     <TD noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>163,634</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Advances payable</FONT>&nbsp; </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="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>150,575</FONT><FONT style="WIDTH: 11pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="1%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>78,615</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left"></FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="64%">&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT>&nbsp; </TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="18%" colSpan=2><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(62,560)&nbsp;&nbsp;&nbsp;</FONT>&nbsp; </TD>
     <TD noWrap align=center width="1%"></TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=center width="1%"><FONT style="WIDTH: 11pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>$</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="16%"><FONT style="WIDTH: 36pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>(8,802</FONT><FONT style="WIDTH: 4pt; TEXT-ALIGN: left" face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>)</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif" size=2><BR>
9. Subsequent event</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif" size=2>Subsequent to the period end, the Company incorporated a wholly owned subsidiary in Canada.</FONT></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>F-10</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-11-</FONT></P>
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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 2.&nbsp;&nbsp; &nbsp;MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</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 10-QSB 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 U.S. generally accepted accounting principles 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 March 31, 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">-12-</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">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">Options and warrants issued in consideration for debt. </FONT></I></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">The Company allocates the proceeds received from long term debt between the liability and the options and warrants issued in consideration for the debt, based on their relative fair values, at the time of issuance. The amount allocated to the options or warrants is recorded as additional paid in capital and as a discount to the related debt. The discount is amortized to interest expense on a yield basis over the term of the related debt. Options and warrants are valued using an option pricing model which requires estimates of the expected lives of the awards, volatility, risk-free interest rates and dividend rates. Changes in these assumptions will impact the allocation of the consideration, including the amounts ultimately charged against income as interest expense.</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><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Results of Operations </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Management is focusing the majority of its efforts on introducing and marketing its line of medication reminders and compliance systems to the health management industry. ALRT Med Reminders are being marketed and sold directly to disease management companies, health insurance providers, pharmaceutical manufacturers, retail pharmacy chains and to organizations representing specific therapeutic categories. The Company is first targeting customers located in United States because of market potential but has also established selling operations/agreements for sales and distribution in Canada, Europe, Australia and South America.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Contracts with companies that will provide selling support to medical supply companies and health services providers as well as contracts with companies that sell directly to institutions and large medical practices were completed in 2004. Additional contracts are in process as the Company completes development of its home health monitoring system. The Company will also utilize advertising/promotion and publicity activities to pharmaceutical manufacturers, contract research organizations, independent pharmacies and consumers.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Sales revenue </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">was $1,739 in the quarter ended March 31, 2008 as compared to $114,764 in the quarter ended March 31, 2007. The decrease in sales is mainly due to the Company's decision to phase out older generation of its products and concentrate its effort to develop ALRT500.</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Development costs </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">were $190,814 for the quarter ended March 31, 2008 as compared with $54,186 for the quarter ended March 31,2007. Development costs incurred during the first quarter of 2008 related to the allocation of additional programming resources required for the development of the</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-13-</FONT></P>
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<P align="left">
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">ALRT500 LCD (Liquid Crystal Display) Med Reminders and the ALRT Interactive Response System (AIRS). Development costs for the three months ended March 31, 2008 and 2007 include &#36;143,791
and &#36;Nil, respectively, of non-cash compensation costs related to options issued for services in the period.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Interest expense </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">was &#36;168,396 for the quarter ended March 31, 2008 as compared
with &#36;166,480 for the quarter ended March 31, 2007. The amount for the current quarter included &#36;3,734 relating to options issued in exchange for &#36;450,000 loan to be received during the period from March to June 2008. The Company
continues to rely on debt financing and cost to obtain extensions on debt obligations.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Professional fees </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">were &#36;14,280 for the quarter ended March 31, 2008 as
compared with &#36;16,503 for the quarter ended March 31, 2007. 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><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">The selling, general and administrative expenses </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">were &#36;147,709 for the quarter
ended March 31, 2008 as compared to &#36;159,471 for the quarter ended March 31, 2007. The decrease relates primarily to lower investor relations activities during the current period.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Net loss </FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">of &#36;526,207 for the quarter ended March 31, 2008 increased
significantly from a loss of &#36;299,853 for the same quarter in 2007 mainly due to increase in product development and interest expenses plus decrease in sales. The largest component of this decrease was the non-cash interest and compensation
costs related to options issued for product development and loan.</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 March 31, 2008, the Company's cash balance was &#36;413 compared to &#36;2,973 as of December 31, 2007. As of March 31, 2008, the Company had a working
capital deficiency of &#36;11,152,033 as compared to a working capital deficiency of &#36;10,773,657 as of December 31, 2007.</FONT></P>
<P align="left">
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Short and Long Term Liquidity</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">As of March 31, 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="center">
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-14-</FONT></P>

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<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Cash Provided by (Used in) Operating Activities</FONT></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 $62,560 in comparison with $8,802 during the same quarter last year. The increase was mainly due to lower cash received from the customers during the current quarter.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Cash Proceeds from Financing Activities</FONT></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">During the three months ended March 31, 2008, the Company received $60,000 loan from a non-related party as compared to $Nil in the three months of 2007 from a relative of a director.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Off Balance Sheet Arrangements.</FONT></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; 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">We maintain &#147;disclosure controls and procedures,&#148; as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report pursuant to Rule 13a-15 of the Exchange Act. Based on this Evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our Disclosure Controls were effective as of the end of the period covered by this report.</FONT></P>
<P align=left><B><I><FONT face="TimesNewRomanPS-BoldItalicMT,Times New Roman,Times,serif">Changes in Internal Controls</FONT></I></B></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">We have also evaluated our internal controls for financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of their last evaluation.</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif"><BR>
PART II - OTHER INFORMATION</FONT></B></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp; LEGAL PROCEEDINGS</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp; There were no legal proceedings in the quarter except as disclosed in Part I, Item 1.</FONT></P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">-15-</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;CHANGES IN SECURITIES</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp; There were no changes in securities.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp; DEFAULTS UPON SENIOR SECURITIES</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp; There were no defaults upon senior securities in the period.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp; SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp; No matters were submitted to security holders for a vote during the period.</FONT></P>
<P align=left><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp; OTHER MATTERS</FONT></B><BR>
<BR>
<FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp; None.</FONT><BR>
<BR>
<B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp; EXHIBITS</FONT></B></P>
<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp; The following Exhibits are attached hereto:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibit No. &nbsp;</FONT></B></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Document Description</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="8%"><FONT style="WIDTH: 22pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">21.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="91%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Subsidiaries of ALR Technologies Inc.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="8%"><FONT style="WIDTH: 22pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">31.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="91%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certification of Principal Executive and Principal Financial Officer pursuant Section 302</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="8%">&nbsp; </TD>
     <TD noWrap align=left width="91%"><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=center width="8%"><FONT style="WIDTH: 22pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">32.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="91%"><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=center width="8%">&nbsp; </TD>
     <TD noWrap align=left width="91%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sarbanes-Oxley Act of 2002.</FONT>&nbsp; </TD></TR></TABLE><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">-16-</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 15</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">th </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">day of May, 2008.</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD noWrap align=left width="50%"></TD>
     <TD noWrap align=left width="50%" colSpan=2><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">ALR TECHNOLOGIES INC.</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="50%"></TD>
     <TD noWrap align=left width="50%" colSpan=2><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">(Registrant)</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="50%"></TD>
     <TD width="50%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="50%"></TD>
     <TD noWrap align=left width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BY:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="45%"><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">SIDNEY CHAN</FONT></U>&nbsp; </TD></TR>
<TR>
     <TD noWrap align=left width="50%"></TD>
     <TD noWrap align=left width="5%"></TD>
     <TD noWrap align=left width="45%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sidney Chan, Chairman, Chief Executive</FONT> </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="50%"></TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="45%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Officer and a member of the Board of Directors</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="50%"></TD>
     <TD width="50%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="50%"></TD>
     <TD noWrap align=left width="5%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">BY:</FONT>&nbsp; </TD>
     <TD noWrap align=left width="45%"><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">STANLEY CRUITT</FONT></U>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="50%"></TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="45%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Stanley Cruitt, President and a Member of the</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=left width="50%"></TD>
     <TD noWrap align=left width="5%">&nbsp; </TD>
     <TD noWrap align=left width="45%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Board of Directors</FONT>&nbsp; </TD></TR></TABLE><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">-17-</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 align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp; The following Exhibits are attached hereto:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>
<TR>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Exhibit No. &nbsp;</FONT></B></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="91%"><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Document Description</FONT></B>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="8%"><FONT style="WIDTH: 22pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">21.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="91%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Subsidiaries of ALR Technologies Inc.</FONT>&nbsp; </TD></TR>
<TR>
     <TD width="99%" colSpan=2>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="8%"><FONT style="WIDTH: 22pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">31.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="91%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Certification of Principal Executive and Principal Financial Officer pursuant Section 302</FONT>&nbsp; </TD></TR>
<TR vAlign=bottom>
     <TD noWrap align=center width="8%">&nbsp; </TD>
     <TD noWrap align=left width="91%"><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=center width="8%"><FONT style="WIDTH: 22pt; TEXT-ALIGN: right" face="TimesNewRomanPSMT,Times New Roman,Times,serif">32.1</FONT>&nbsp; </TD>
     <TD noWrap align=left width="91%"><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=center width="8%">&nbsp; </TD>
     <TD noWrap align=left width="91%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sarbanes-Oxley Act of 2002.</FONT>&nbsp; </TD></TR></TABLE><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>
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<TYPE>EX-21.1
<SEQUENCE>2
<FILENAME>exh211.htm
<DESCRIPTION>LIST OF SUBSIDIARY COMPANIES.
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Exhibit 21.1</FONT></P>
<P align=center><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">LIST OF SUBSIDIARY COMPANIES</FONT></B></P>
<P style="BORDER-BOTTOM: #000000 2pt double" align=center><STRONG></STRONG>&nbsp;</P>
<P align=center><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Canada Alrtech Health Systems Inc.</FONT></P>
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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>exh311.htm
<DESCRIPTION>SARBANES-OXLEY 302 FOR PRINCIPAL EXECUTIVE AND PRINCIPAL FINANCIAL OFFICER.
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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, </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">Sidney Chan</FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">, 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>
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<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">I have reviewed this </FONT><B><FONT face="TimesNewRomanPS-BoldMT,Times New Roman,Times,serif">10-QSB for the period ending March 31, 2008 of ALR Technologies Inc.</FONT></B><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">;</FONT></P>
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     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">2.</FONT>&nbsp; &nbsp; &nbsp; </TD>
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<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 a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</FONT></P>
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     <TD colSpan=3>&nbsp;</TD></TR>
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     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">3.</FONT>&nbsp; &nbsp; &nbsp; </TD>
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<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>
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     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">4.</FONT>&nbsp; &nbsp; &nbsp; </TD>
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<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>
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     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a.</FONT>&nbsp; &nbsp; &nbsp; </TD>
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<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 our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</FONT></P>
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<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 our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</FONT></P>
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<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and</FONT></P>
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<P align=justify><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">I have disclosed, based on our 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>
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     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">a.</FONT>&nbsp; &nbsp; &nbsp; </TD>
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<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>
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     <TD vAlign=top noWrap><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">b.</FONT>&nbsp; &nbsp; &nbsp; </TD>
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<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>
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<TABLE style="WIDTH: 1238px; HEIGHT: 86px" cellSpacing=0 cellPadding=0 width=1238 border=0>
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     <TD align=left width="6%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Date:</FONT>&nbsp; </TD>
     <TD align=left width="43%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">May 15, 2008</FONT>&nbsp; </TD>
     <TD align=left width="50%"><U><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">SIDNEY CHAN</FONT></U>&nbsp; </TD></TR>
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     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="43%">&nbsp; </TD>
     <TD align=left width="50%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Sidney Chan</FONT>&nbsp; </TD></TR>
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     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="43%">&nbsp; </TD>
     <TD align=left width="50%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Principal Executive Officer and Principal Financial</FONT>&nbsp; </TD></TR>
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     <TD align=left width="6%">&nbsp; </TD>
     <TD align=left width="43%">&nbsp; </TD>
     <TD align=left width="50%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Officer</FONT>&nbsp; </TD></TR></TABLE>
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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>exh321.htm
<DESCRIPTION>SARBANES-OXLEY 906 FOR CHIEF EXECUTIVE AND CHIEF FINANCIAL OFFICER.
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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">March 31, 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>
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<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>
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     <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>
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<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>
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<P align=left><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dated this 15</FONT><SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">th </FONT></SUP><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">day of May, 2008.</FONT></P>
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     <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>
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     <TD align=left width="100%"><FONT face="TimesNewRomanPSMT,Times New Roman,Times,serif">Chief Financial Officer</FONT>&nbsp; </TD></TR></TABLE></DIV>
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