OxyFile #319

CTC Inc. Advisory
4665 Cornell Road
Suite 167
Cincinnati, OH 45241

                     MEDIZONE INTERNATIONAL, INC.

The Company:

Medizone International, Inc. is a development stage company founded in 
1986 to scientifically explore the effectiveness of ozone in the 
decontamination of blood and blood products of lipid enveloped viruses 
and in the treatment of certain virally caused diseases, including 
Acquired Immunodeficiency Syndrome (AIDS) and Hepatitis B.

Medizone holds US patent No. 4,632,980 entitled "Ozone Decontamination 
of Blood and Blood Products" which covers a procedure for the 
decontamination of blood and blood products of lipid enveloped viruses 
while permitting the physiological characteristics of the blood or 
blood component to be retained.  This procedure describes a method of 
treatment of blood and blood components with a precise mixture of 
ozone and oxygen ("MEDIZO3NE").  The use of MEDIZO3NE as a therapeutic 
drug in the treatment of certain human viral based diseases and as a 
procedure to decontaminate blood and blood components are applications 
covered under this patent. The Company also owns similar patents 
(based on the U.S. patent) in Canada, Europe (EPC), Australia, Hong 
Kong, Japan and Malaysia, with pending applications in other 
countries, including Singapore.

The Company has also developed an apparatus specifically designed to 
produce and deliver MEDIZO3NE.  Patent No. 5,052,382 has been issued 
in the U.S.  Foreign patents based upon this equipment patent have 
been granted in Australia and Europe and an application for a similar 
patent has been submitted in Canada.

Medizone has financed its research and process development with equity 
offerings and funding grants.  The Company has not recorded revenue to 
date and is considered a "development stage company."  The Company has 
not received regulatory approval in any country to license or market 
its products.

The Product:

MEDIZO3NE a precise mixture of ozone and oxygen, is produced by an 
apparatus developed by the Company, which is designed to generate, 
dose and monitor this gaseous drug.  This apparatus includes a 
disposable hollow fiber device which interfaces MEDIZO3NE with a 
patient's blood or unit of donor blood.  As the blood comes into 
contact with the ozone/oxygen mixture, lipid enveloped viruses present 
are inactivated, while the integrity of the blood (including both 
cells and proteins) is retained.


MEDIZO3NE is currently being investigated for two separate 

* A technology for the decontamination of blood and blood products

As a process for the decontamination of the blood supply, donor blood 
is infused with MEDIZO3NE using Medizone's patented apparatus.  When 
the mixture of ozone and oxygen (MEDIZO3NE) comes into contact with 
the donor blood, lipid enveloped viruses present in the donor blood 
(both free and cell-incorporated) are rendered inactive.

* A drug treatment for certain virally caused diseases

As a drug for the treatment of certain virally caused diseases, small 
amounts of patients blood, about eight ounces, are treated outside the 
body (extracorporeally) and reintroduced into the patient in a 
treatment program repeated on alternate days for a finite period of 
time (projected to be 12 weeks).  In part, the biological "shelf life" 
of lipid peroxides, a residual active product of ozone's reaction with 
lipids, requires the treatment to be completed within one hour.  
Immediately upon contact MEDIZO3NE inactivates the lipid enveloped 
viruses present and thereby makes them unable to infect other healthy 
cells.  Although MEDIZO3NE is exhausted almost instantaneously, the 
lipid peroxides generated by MEDIZO3NE exhibit antiviral activity 
themselves, and continue to inactivate both free virus and virally 
infected cells for relatively longer periods of time.

What is Ozone?:

Ozone is a naturally occurring triatomic form of oxygen and is not 
only present in the earth's atmosphere, but is also created as a 
byproduct of any electrical discharge.  Ozone's healing properties 
were first described in the late 1880's.  By 1910, several methods of 
using ozone to treat wounds were being used in North America and 
Europe.  In the early 1900's, ozone was manufactured in North America 
using compressed air (which includes nitrogen) rather than pure 
oxygen.  The resulting products of this process, including ozone and 
other highly reactive nitrogen based compounds, coupled with dangerous 
delivery methods then used, eventually discredited ozone as a medical 
treatment in North America.  However, ozone continues to be 
extensively used throughout Europe, specifically in Austria, Germany 
and Italy, and studies dating back to 1930 anecdotally document its 
benefit in treating a myriad of medical conditions.  In the U.S., the 
non-medical applications for ozone include waste water treatment and 
water purification as an alternative to chlorine.


The status of Medizone's sponsored research supporting the potential 
use of its process and drug related technology as a blood 
decontamination process and as a human therapeutic drug is as follows:

Research involving a preliminary animal model, human HIV target cells, 
a limited feline model, human peripheral blood, and Factor VIII spiked 
with HIV-l, have all evidenced the relatively low toxicity of 

Blood plasma purification studies are underway with funded costs 
totally sponsored by the Canadian Defense Department Blood Forces 
Program.  The first and second stage of these studies have been 
successfully completed. In May 1994, the Canadian Blood Forces Program 
finalized funding of the third stage of research investigating 
MEDIZO3NE's ability to prevent transmission related disease in a live 
Simian Immunodeficiency Viral animal model in macaque monkeys.  This 
stage of study is being conducted at the New York State College of 
Veterinarian Medicine, Cornell University.  These Canadian studies 
have been expanded with the goal of the Company to gain regulatory 
approval to license Medizone's patented process for the sterilization 
of blood derivatives and potentially whole blood prior to 

Medizone has a submission pending with the U.S. FDA for human clinical 
Phase I trials for its drug in the treatment of HIV infection.  The 
Company's Canadian subsidiary has a similar submission with Health and 
Welfare, Canada, with both regulatory agencies requesting large animal 
toxicity data prior to considering approval.  A pig model has been 
developed by the Company and submitted to both agencies to meet their 
large animal toxicity data requirements.  The Company will require 
additional funding to commence this portion of its research, a 
necessary prerequisite for either agency to approve the commencement 
of human testing.

Clinical human trials (Phase I) studying Medizone's proprietary 
process as a treatment for both HIV infected and chronic, active 
Hepatitis B patients, are being conducted in an Italian multi-site 
University Hospital based program sponsored by the Italian Ministry of 
Health.  On May 30, 1994, Medizone announced the commencement of the 
first site of these Phase 1 clinical trials with its Italian 
collaborators at the University of Naples to study the effect of 
MEDIZO3NE therapy on human patients infected with either HIV or 
Hepatitis B.

Potential Markets:

There is obviously an important market for an effective drug that 
provides therapeutic treatment for AIDS and other virally caused 
diseases.  However, an attempt to quantify a revenue and earnings 
contribution from this source would be premature given the Company's 
present stage of regulatory development.

The blood decontamination market, if regulatory approval is obtained, 
would be a significant income and revenue source which is more readily 

It is estimated that 25 - 26 million units of blood and blood products 
are collected, processed and transfused annually in the United States 
with an estimated $5 billion market.  The worldwide market for 
transfusions is projected at an additional $10 billion.

Cost to decontaminate each unit of blood is estimated at about $60 per 
unit -- a potential annual market of $450 million estimating a 10 
percent market share of the worldwide market.

Investment Considerations:

Medizone International, Inc. is attempting to evolve from a 
development stage company focused solely on rigorous scientific 
research investigating the medical applications of ozone to a stage 
where its products receive regulatory approval for licensing and 

There appears to be renewed interest in ozone's potential as a bona 
fide medical treatment which has attracted the attention of 
governments and the scientific community.

As a true "penny stock", with an excess of 119 million shares 
outstanding, Medizone has a present market value of $18 million.  
Management believes this is modest considering the potential market 
for the Company's products if regulatory approval(s) are obtained.

Since its founding in 1986, Medizone has financed its research and 
product development with equity offerings and funding grants.  Up to 
this time, the Company has not yet recorded any revenues and is 
considered a "development stage company."

Medizone has no sales, no earnings and limited capital.  Although its 
reported research to date has been positive, Medizone must be 
considered a highly speculative investment suitable only for accounts 
with a high risk/reward profile.


 Approximate Shares Outstanding (as of 4/28/95)         119,000,000 
 Estimated Float                                         58,000,000 
 Recent price (as of 4/28/95)                  Bid $0.14  Ask $0.16 
 52 Week High/Low Bid                                 $0.31 - $0.07 
 Average Daily Volume                                 Not Available 
 Market Makers                                                   12 

CTC, Inc. serves as the investor relations counsel to Medizone 
International Inc.  It is acting on the Company's behalf in issuing 
this newsletter and is receiving compensation in return.  The 
information contained in this newsletter is furnished to inform the 
brokerage community and is not an offer to buy or sell securities.