Financial Effects

The effect of the Placement on the net tangible assets per share of the mDR Group for

the financial year ended 31 December 2006, assuming that the Placement had been

effected and completed on 31 December 2006 is approximately an improvement from a

net tangible liability of 0.15 Singapore cents to a net tangible asset of 0.16 Singapore

cents per mDR share.

The effect of the Placement on the loss per share of the mDR Group for the financial

year ended 31 December 2006, assuming that the Placement had been effected and

completed on 31 December 2006 is approximately an improvement from a loss per

share of 2.15 Singapore cents to a loss of 2.05 Singapore cents per mDR share.

As at the date of this announcement, the Company?s issued share capital comprises

1,614,988,970 ordinary shares. Upon completion of the Placement, the Company?s

share capital shall increase by approximately 0.0455% to 1,688,488,970 ordinary

Issue Price

The issue price for each Placement Share is S$0.068 per Placement Share. The issue