Item 2. Management's Discussion and Analysis of Financial Condition and Plan of Operations

All statements that are included in this Quarterly Report, other than statements of historical fact, are forward looking statements. You can identify forward-looking statements by words such as "anticipate", "believe" and similar expressions and statements regarding our business strategy, plans and objectives for future operations. Although management believes that the expectations reflected in these forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The forward-looking statements in this filing involve known risks and uncertainties, which may cause our actual results in future periods to be materially different from any future performance suggested in this report. Such factors may include, but are not limited to: the ability to obtain additional funding further develop and market our products, changes in technology, market acceptance of our products, regulatory approval of our products in various markets, fluctuations in customer demand and commitments, pricing and competition, reliance upon subcontractors, together with such other factors as may be included in our Annual Report on Form 10-KSB

Financial Summary

Results of Operations for the Three-Months Ended June 30, 2006 and 2005

For the three-months ended June 30, 2006, the Company experienced a net loss of $104,983, primarily comprised of research and development expenses of $60,657 and selling, general and administrative expenses of $85,501. For the three-months ended June 30, 2005, the Company's net loss was $163,610.

Selling, general and administrative expenses for the three-months ended June 30, 2006 were $146,158, compared to $131,916 for the three-months ended June 30, 2005.

For the three-months ended June 30, 2006, the Company's sales were $99,330 resulting in an increase in sales of $61,141 compared to sales for the three-months ended June 30, 2005.

Gross profit for the three-months ended June 30, 2006 was $51,048 or 51% of sales as compared to 55% for the three-months ended June 30, 2005.

As of June 30, 2006, the Company maintains $50,699 as advances towards future sales pertaining to its non-exclusive distribution agreement with WLT Distributors Inc.

Liquidity and Capital Resources

For the nine months ended June 30, 2006 the Company's cash position increased by $140,112. The Company spent $975,486 in its operations and received $1,454,260 from financing activities. Financing activities included gross proceeds from private offerings of $1,506,005; an amount repaid to related parties of $38,373; and principal reduction on small business loan of $13,372.

For the nine months ended June 30, 2005 the Company's cash position decreased by $6,271. The Company spent $115,614 in its operations and received $204,411 from financing activities. Financing activities included advances from related parties of $126,505; advances from loans of $89,752; and the reduction of its principal amount of its small business loan of $11,846.

During this nine month period ended June 30, 2006, the company received investments of approximately $1,400,000 and has used most of those proceeds for the following expenses: $880,000 in operational expenses including payments to suppliers, sub-contractors, outside accountants and attorneys; Repayment of a $200,000 loan from Scanview; Fees to business consultants of $165,000 and finders fees of $118,000.

Medical International Technology, Inc. expects that revenues from existing and developing sales will not meet its liquidity requirements for the next 12 month period at its current level of operations. The company continues to rely on management to develop the business and work to develop sales. Management has and may continue to supplement cash flows from sales with additional equity and debt financing. Substantially, expanded operations are expected to require additional capital, either from a future offering of equity or the company pursuing other methods of financing, as appropriate.

MEDICAL INTERNATIONAL TECHNOLOGY, INC. QUARTERLY FINANCIAL REPORT

Management Plan of Operations

Medical International Technology, Inc. ("MIT") is engaged in the business of research, development, marketing and sales of needle-free jet injector technology and products for humans and animals, for single and mass injections. We continue to market our product in all available markets, seek regulatory approvals to expand those market opportunities and improve our products for application to new markets.

Medical International Technology, Inc. continues its efforts to secure additional funding to support and expand operations, develop and seek regulatory approvals for our products and market those products worldwide.

Medical International Technology, Inc. will continue to seek additional funding to expand operations and develop sales revenue to a volume sufficient to sustain operations Product Development Medical International Technologies has filed for FDA approval for its needle-free injector - the MED-JET, designed specifically for human mass inoculations. The MED-JET is capable of delivering many types of medications such as vaccines, insulin and other types of injectables. Its low-pressure technology offers an advantage to alternative high pressure systems that can cause blowbacks and expose medical workers and patients alike to microscopic traces of blood.

According to the International Sharps Injury Prevention Society (http://www.isips.org), it has been estimated that one out of every seven workers is accidentally stuck by a contaminated sharp point each and every year. The Center for Disease Control (CDC: http://www.cdc.gov/niosh/2000-108.html#5) estimates that there are 600,000 to 800,000 needle stick injuries per year in the U.S. alone, and many are not reported. More than 20 types of infectious agents have been transmitted through needlesticks, including hepatitis B and C, tuberculosis, syphilis, malaria, herpes, diphtheria, gonorrhea, typhus and Rocky Mountain spotted fever. The MED-JET will eliminate this risk to our health care professionals and create a safer workplace. Other advantages include its light weight (0.5 kg) and an excellent medication absorption rate. Additionally, the system has the ability to increase or decrease the volume and pressure of injection. This technology is unique to MIT's MED-JET MBX Injector. The system is designed to allow for the injection of up to 600 individuals an hour.

The approval process can be expensive and may take an extended period of time. There can be no assurance that this system will receive approval from the FDA or if approved gain broad acceptance by the medical community or individual patients.

On December 15, 2005, Medical International Technologies, Inc announced that it has received full certification granted under the International Organization for Standardization, as well as the Canadian Medical Device Conformity Assessment System, for devices to be licensed by HEALTH CANADA. These certifications allow MIT to market the Med-Jet Needle-Free Injector for human use in all countries other than the U.S., at this point. The Med-Jet injector has been submitted for FDA approval which, if accepted, will allow MIT to sell the Med-Jet in the United States, making it a truly worldwide system.

Now that MIT is able to sell its Med-Jet in all countries, other than the U.S., it is working to complete two FDA filings. The first of these will be for use of the Med-Jet for injecting anesthesia in a variety of situations. The second will be the Med-Jet-H, for mass vaccination in case of a pandemic, such as Avian Influenza, Polio, Tuberculosis, or Malaria .

We are currently responding to comments on our FDA application and must provide additional test information. We are planning for the completion of these additional tests over the next six months.

MIT is also pursuing increasing interest in its Agro-Jet needle-free injector. In Australia, we are awaiting approval of an injectable solution manufactured by a large pharmaceutical company which will be used in our injector systems. We expect that this approval will occur sometime in the second quarter of 2007.

On December 19, 2005 the Board of MIT adopted a resolution stating that " MIT will acquire all of the issued and outstanding shares of 9139-2449 Quebec Inc operating under the name "Scanview" for 2,500,000 restricted common shares of MIT". No shares have been issued and the final terms are pending acceptance by the shareholders of Scanview

MEDICAL INTERNATIONAL TECHNOLOGY, INC. QUARTERLY FINANCIAL REPORT

Scanview is a portable ultrasound technology and manufacturing company based in Montreal, Quebec, Canada. ScanView was formed in 2003 to develop, manufacture and market different models of Real Time Ultrasound Scanners, for Animal and Human applications.

ScanView has a unique, portable and battery operated ultrasound diagnostic medical device, using a variety of probes for pathological and physiological evaluation of organs such as the heart, kidneys, liver, thyroid, uterus and ovaries. They serve equally well to detect kidney stones, diagnose pregnancy, visualize follicle development and carry out all other normal ultrasound diagnostic procedures.

ScanView is a private Canadian company owned by Karim Menassa, our CEO and Director, owning 55% of Scanview, Michel Bayouk, our CFO and Director, owning 10% of Scanview and three other unrelated shareholders.

The Acquisition of Scanview is pending an independent appraisal valuation of Scan View at the request of Medical International Technology. Based on the results of this valuation the acquisition of Scanview may proceed.

Going Concern

The Generally accepted accounting principles in the United States of America contemplate the continuation of the Company as going concern. However, the Company has reported a net liability position of $21,424 and has accumulated operation losses since inception of $5,763,916, which raises substantial doubt about the Company's ability to continue as a going concern. The continuation of the company is dependent upon the continuing financial support of creditors and stockholders and upon obtaining the capital requirements for the continuing operations of the Company. Management believes actions planned and presently being taken provides the opportunity for the Company to continue as a going concern.

We have limited capital with which to pursue our business plan. There can be no assurance that our future operations will be significant and profitable, or that we will have sufficient resources to meet our objectives. We may pursue either the option of debt or equity financing or a combination of both in order to raise sufficient capital in order to meet our financial requirements over the next twelve months and to fund our business plan. There is no assurance that we will be successful in raising additional funds.

Our future success will be dependent upon our ability to continue pursue market acceptance of our products; obtain regulatory approvals necessary to expand our markets and introduce or products to those markets through expanded sales operations.