SOURCE: MDM Group, Inc.

May 09, 2005 13:53 ET

Major Acquisition Announced by MDM Group

MDM Group to Acquire Leading Oral Fluid Diagnostic and Testing Interest for $4 Million

SANTA CLARA, CA -- (MARKET WIRE) -- May 9, 2005 -- MDM Group, Inc. (OTC: MDDM) advises that it has entered into agreement to acquire all the issued capital of leading oral fluid (saliva) diagnostic group, Bamburgh Marrsh LLC (See: in consideration of payment of $4 million and the provision of further development and working capital funds. The transaction is in the process of due diligence completion and is expected to close within 30 days.

As referenced within an Interview published by the Wall Street Journal last April 19: "A sample of saliva can have within it DNA, RNA, proteins, germs, viruses, fatty acids and a host of interesting molecules useful in disease detection...whatever is in the blood is also in saliva. It is, in fact, a reflection of our blood, its a blood filtrate..."

Oral fluid testing and/or diagnosis is being rapidly established as an extremely economic, efficient and non-invasive process that through Bamburgh Marrsh technology will be capable of delivering instant on-the-spot results as opposed to the far more expensive, invasive and delayed results of tests using urine or blood samples.

Bamburgh Marrsh has three significant areas of operation:

1. Substance Abuse Testing -- This business initiative is fully developed and ready for immediate commercialization with major application for on-the-spot drug testing for Law Enforcement use, employment screening and sports testing. The significant advantage that Bamburgh Marrsh has in these fields is that patent-pending collection devices (one of only two that are FDA approved) are used that enable oral fluid samples to be split -- one for analysis and one that can be retained to, for example, preserve the integrity of evidence or challenge. The other major advantages of the testing system is that it is instant, truly portable -- handheld -- and has instant test result printing capability. To the Company's knowledge these capabilities are unique.

2. Clinical Diagnostics -- Several significant diagnostic applications are in development. Bamburgh Marrsh is dedicated to providing effective screening tools that may be applied for the early detection of diseases and medical disorders utilizing non-invasive test specimens such as oral fluids.

3. Bio-defense -- Following recently announced official notification of its registered status as an "ISTC Partner," the International Science and Technology Center (ISTC) provides MDM with clear access to accelerate its ongoing development of its biodefense capabilities in conjunction with world leading researchers and institutes in the Russian Federation. This association will contribute to value add the existing Bamburgh Marrsh bio-defense applications and initiatives.

The ISTC Program ( is part of a US Department of State program whose objective it is to support nonproliferation in the area of nuclear, biological and chemical Weapons of Mass Destruction (WMD) by providing assistance in establishing sustainable non-weapon related jobs for the scientists and engineers in the Newly Independent States of the former Soviet Union who possess current or prior, direct or indirect WMD experience. The ISTC program is funded mainly by the U.S., European Union, and Japan.

Dr. Ed Stephen, head of MDM's biodefense division, is currently on a one-month undertaking in Russia, where he is conducting a series of meetings with various Institutes that include focus on the development of anthrax, smallpox and TB diagnostic and vaccine research.

The Company will provide further information to the market during the course of the transaction.

MDM Group is a development stage Company focused on the Security, Biodefense and Homeland Security industries. See:

Safe Harbor Statement

The information in this release, other than historical information, may be considered forward-looking statements within the provisions of the Private Securities Litigation Reform Act of 1995. Projection and other forward-looking statements and management expectations regarding future events and/or financial performance of the Company -- although given in good faith -- are inherently uncertain and actual events and/or results may differ materially.

For further information see:

MDM Group is featured on a global investment research portal for defense and security.

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