Chairman's Letter

December 21, 2007

Dear Shareholders,

This has been a significant year for Lifeline Biotechnologies, Inc. as we have been focused on completing the development of the First Warning System™ (FWS), which was designed to assist in the early detection of breast cancer. Of the approximately $138 billion spent on cancer each year, Lifeline could potentially save the healthcare industry up to $4.1 billion annually, assuming the following are successfully completed:  the development of the First Warning System™, the completion of additional patient testing and FDA clearance of our 510(k) filing expected to be submitted to the FDA in 2008. In 2007, we managed to make important advancements with all of these objectives.

Lifeline is preparing for additional patient testing this year and begun the preparations to file the 510(k) with the FDA, which, if cleared, could allow the Company to begin marketing the First Warning System™ to the public. Lifeline has also begun reviewing companies who have products similar to the FWS, which could enable us to shorten the approval process of the FWS device.

We have also been in discussions with various firms who have received approvals on “predicate” devices to assist us with preparation and filing of the 510(k). The company selected, will assist with the verification and validation of the FWS within the guidelines required by the FDA. We hope to select and announce a firm in the first quarter of 2008. In December, we met with the Managing Engineer of Nanyang Technical University and were able to determine that the upgrading of the FWS could be accelerated, and the development possibly completed by mid 2008.

We have recently provided patient cases to Nanyang Technical University to aid in the development of the FWS interpretive analytical system with an added objective of making it more user friendly for women. Our enhancements to the software could enable us to cut down the testing period and make this non-evasive detection of breast cancer an easier process.

In 2008, Lifeline expects to be testing patients at hospital. The results are expected be used to further improve the effectiveness of the FWS. We also look forward to finishing the additional patient testing; completing the software development and hardware updates; selecting a firm to assist with preparing and filing the 510(k); and preparation for the marketing the FWS to the public. We will also continue seeking acquisition candidates, mergers and strategic alliances.

Sincerely,

Jim Holmes

CEO of Lifeline Biotechnologies, Inc.