SOURCE: MDM Group, Inc

October 25, 2005 12:30 ET

MDM Group Reports Progress and Sale of IT Security Patent to TIE Technologies

SANTA CLARA, CA -- (MARKET WIRE) -- October 25, 2005 -- MDM Group, Inc. (OTC: MDDM) advises the following as a general update of progress and development within the Company:

MDM Group has been extremely busy with its corporate, business and opportunity development over the past several years and specifically over the last eighteen months. Over this period MDM Group has:

Successfully spun out the ShockRounds development into the Australian listed Harrington Group Limited (OTC: HGRLF) or (ASX: HGR). Harrington has subsequently announced agreement to acquire Sun Biomedical Laboratories, a business that markets leading saliva and urine illicit drug testing products including OraLine® globally. The company expects a number of significant marketing programs to be initiated over the coming months and will advise the market accordingly as these efforts progress.

Successfully test-fired ShockRounds prototypes and announced agreement to use the first production product in 10 - 12 US corrections center beta sites.

ShockRounds development is progressing solidly and is soon expected to be even better positioned through the integration of complimentary less-lethal technology. In addition announcement of significant global partner relationships will be made as and when they become material.

Established working relationships with Russia's leading scientific research centers through our partnerships and associations with the Russian Biotechnological Consortium for Medicine and Agriculture (BIOMAC) and with the International Science and Technology Center (ISTC).

Under the leadership of our Vice President Biodefense Development, Ed Stephen, MDM has established collaborations that span the globe and deal with potential product candidates for several agents considered to be on the top of the bioterrorism threat list as well for viruses that may result in global pandemics such as the widely reported H5N1 strain of avian flu. MDM is also evaluating product candidates for diseases caused by such agents including smallpox virus and anthrax. These product candidates represent the two primary types of products in development against biothreats: Vaccines, which stimulate the body to build its own immunity, and Pharmaceuticals, which often work immediately and independently of the body's immune system. Pharmaceutical drugs that are effective against one threat agent often are effective against several similar threat agents, so-called "broad spectrum" agents.

MDM's current vaccine development project targets the smallpox virus, an agent that is at the top of the bio-warfare bio-terrorism threat list of many agencies worldwide. The advantage of MDM's vaccine approach is that the vaccine product will likely address a large number of variants of the target virus. A similar approach to development of a vaccine is under consideration for influenza, in particular the H5N1 virus and variants.

The MDM biodefense division also puts particular emphasis on projects that involve existing drugs, or agents for which there already exists clinical safety data. Such product candidates allow rapid product development. MDM is in advanced evaluation stages of several such product candidates and will report its progress in due course.

MDM also, following a protracted legal action, successfully retained the full title and ownership of an Identity and Security patent that secures Internet and Network data and or communications using identifier or access codes of 25 or more bytes or characters. MDM has agreed to vend this asset into TIE Technologies an affiliated company (OTC: TIET) in which MDM will have an approximate 65% ownership and control whilst still retaining a 4% royalty over revenues generated through patent protected income streams. TIE Technologies is further in process of completing a number of additional commercial relationships that will be reported when they materialize.

MDM is involved in a number of further developments that will continue to expand the Company's global reach and continue to strengthen its asset base. MDM will foster this progress with the ultimate objective to gain further interest in listed companies that it will have significant and/or controlling interests in. These companies will be independent and be self funded with their own, although controlled, management structures.

Most importantly MDM throughout the group interests has assembled a solid management and advisory team that together, with our partners and associates, the Company is very proud and appreciative of. Their contribution to the ongoing development of the Company cannot be underestimated as they are an integral part of the real capital value of the Company. In general terms MDM has a team of world class scientists, IT specialists with top clearance, as well as advisors to government.

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.

MDM Group and Harrington Group feature on a global investment research portal for defense and security.

Contact Information

  • For further information see: or contact:
    MDM Group Investor Relations
    Steve Weitzman