SOURCE: MDM Group, Inc.

July 21, 2005 08:30 ET

Major Drug Testing and Diagnostic Transaction Announced by MDM Group

MDM Group to Acquire Leading Oral Fluid Testing Technologies

SANTA CLARA, CA -- (MARKET WIRE) -- July 21, 2005 -- MDM Group, Inc. (OTC: MDDM) advises that it has entered into agreement with Sun Biomedical Laboratories, Inc. of New Jersey to acquire control of the world's leading oral fluid (saliva) testing technologies. The technologies comprise unique tests for illicit drugs, tests for clinical applications and also process and device technologies. Many of the tests have existing FDA clearances and along with the device technologies are protected by a series of issued patents.

MDM has entered into a Collaboration Agreement that has provision for the joint development and marketing of a unique product portfolio for a period of up to 18 years. MDM Group has negotiated a further eight-month option to acquire the Sun Biomedical business for $2.8 million through a share issue. Sun Biomedical, which was founded in 1993, currently has 12 employees and annual revenue of approximately $1.5 million.

Dr. Ming Sun, the founder of Sun Biomedical and a pioneer of oral fluid testing, stated: "We have explored many opportunities to expand our business so that we could be better positioned within the still young, but explosive, oral fluid diagnostic, screening and testing markets with our leading-edge and patent-protected technologies, and we envision MDM's Bamburgh Marrsh (See: collection, reader and overall evidential system to represent, in our view, the best available oral fluid test system available. It is clear that MDM's Bamburgh Marrsh is a perfect marriage partner for our business."

MDM Group CEO, Dr. Paul Slowey, PhD, stated: "Both as a founder of Bamburgh Marrsh and as the MDM Group CEO, I am absolutely delighted to be announcing our agreement with Sun Biomedical today. Having the opportunity to package exclusive and unique total testing and screening solutions within our corporate interests that can now incorporate the world's most advanced patent protected oral fluid testing technologies will most certainly contribute to giving us a market edge, as well as giving us the opportunity to become the world standard."

Oral fluid testing and/or diagnosis is rapidly being established as an extremely economic, efficient and non-invasive process that through the Company's technologies 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. 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 probably also in saliva. It is, in most of the case, a reflection of our blood, it's a blood filtrate."

Dr. Slowey adds: "Not only do we have major opportunities within the clinical disease identification markets, but we also are positioned as a major player in the Law Enforcement drug testing initiatives as well as having significant application in the biodefense, job screening, sports, gaming and similar markets."

MDM Group's business interests are focused on the Security, Biodefense and Homeland Security industries See:

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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.

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