SOURCE: MDM Group, Inc.

May 24, 2005 09:15 ET

MDM Group Reports Progress of Substance Abuse Testing License

SANTA CLARA, CA -- (MARKET WIRE) -- May 24, 2005 -- MDM Group, Inc. (OTC: MDDM) advises that Harrington Group Limited (HGR.AX) (OTC: HGRLF) has through a release to the Australian Stock Exchange advised of its intention to proceed with the licensing of a patent protected Substance Abuse Testing (SAT) technology from MDM Group.

The fully developed and market-ready SAT technology incorporates the latest in oral fluid (saliva) diagnostics that allows immediate simultaneous testing for up to any of six illicit drugs including: cocaine, cannabis, amphetamines, speed, PCP and opiates.

The SAT System includes split sample test units, on-the-spot hand-held testing, wireless report printing units through a system that is more efficient, quicker (on-the-spot) and far less invasive than urine testing.

Harrington CEO Marshall Couper said: "Certain patent protected aspects of the SAT System are currently not available anywhere in the world and are particularly important to the global law enforcement industry, as it provides the only available totally portable handheld system that enables law enforcement officers to conduct on-the-spot drug testing anywhere at any time with instant recording, wireless printing capability and integrity in protection of evidence."

The SAT technology is unique and complementary to the law enforcement sector, which is Harrington's main focus, and it offers the opportunity for revenue generation in the forthcoming financial year. The core products of this system are the VerOFy™ I/II Rapid Test Platform and fluid collection system and the Sali-Chek™ wireless reader. Information regarding the specific SAT technologies can be accessed at:

The Harrington Board unanimously agreed to proceed with this opportunity subject to completion of satisfactory due diligence, formal documentation and shareholder approval.

The terms of the Licence Agreement offered requires Harrington to commit to minimum annual gross expenditure of US$1.2 million, for the first two years, for costs, operational, development and marketing expenditure, together with an ongoing royalty payment of 7% of gross worldwide sales. This expenditure will be funded out of existing Harrington reserves in addition to revenues expected to be generated through the proposed licensed operations.

Harrington has further agreed to provide interim loan funding to the SAT operational, development and marketing costs, which will be repayable if Harrington shareholders do not approve the licensing arrangements at the proposed shareholders meeting.

Harrington will be appointing Mr. Richard Herrig, a co-developer of the SAT technology, as Chief Executive Officer of the SAT Division, and Mr. Michael Beaubien as Chief Operations Officer of the SAT Division. Both have extensive experience within the industry and are already involved in current and ongoing discussion with government agencies, law enforcement agencies and other industries with regard to sales of the SAT systems.

The SAT business will not detract from Harrington's ongoing focus and commitment to the ShockRounds™ technology development and commercialisation programme. Harrington advises that the synergies arising from both ShockRounds™ and the SAT technology sharing the same law enforcement sector focus are in fact a significant benefit.

The SAT Licence also covers applications such as employment drug screening, which in many business sectors in Australia and globally such as the resources sector are becoming compulsory, as well as expanding use within sports and in accident and emergency departments. Harrington's exclusive international right to exploit the opportunities across these broad areas of application is expected to enable it to achieve substantial revenues.

A detailed information memorandum, including an independent expert's report, together with the notice of meeting to approve the transaction is being prepared and will be forwarded to Harrington shareholders.

Market for Compulsory Drug Testing

It is readily accepted that drug abuse is a major problem in many sectors of society. Some concept of the size of the problem and therefore the opportunity for the application of the SAT technology can be gained from a review of some published U.S. statistics:

According to the U.S. Department of Labor and other references: use of illicit drugs within the workplace costs industry in the U.S. $75 - $100 billion annually; 65% of all accidents on the job are alcohol or drug related; substance abusers utilize 16 times as many health care benefits and are 6 times more likely to file workers' compensation claims; health benefit utilization in dollar terms are 84% higher; substance abusers record 16 times more work absences; 17% of all U.S. workers regularly use substances of abuse; one company alone, General Motors has stated that employee drug abuse costs them US$1 billion per year.

In the U.S. today, almost all Fortune 200 companies have mandatory employee drug screening programs, as do all industries that are regulated by the U.S. Federal Government. Australia is following the U.S. trend, and many other countries and global industries are rapidly putting drug screening policies and requirements in place.

It is recognized that drugs in the workplace are of major concern, with abusers placing not only themselves but others at risk. This significant issue then extends to the law enforcement sector and the increasing emphasis on the ability to effectively administer random testing of drivers and suspected abusers.

Harrington believes that this elegant system represents a huge market opportunity by providing a less invasive testing solution that offers on-the-spot analysis. Due to this system's ease of use, portability and cost effectiveness, many industries and government agencies stand to benefit in their efforts to combat this pervasive problem.

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: and

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