The Board of Directors of mDR Limited (the “Company”) wishes to announce that the Company has on 22 December 2011 entered into a sale and purchase agreement with Mr Lee Chee Wei (the “Vendor”) for the purchase of the Vendor’s shareholding of 8,333,340 ordinary shares (“Sale Shares”) representing approximately 1.92% of the total number of shares in the capital of Distribution Management Solutions Pte Ltd (“DMS”), a subsidiary of the Company (the “Acquisition”).

The purchase consideration for the Sale Shares is S$350,000 and was arrived at on a willing buyer and willing seller basis.

Following the Acquisition, the Company’s shareholding interest in DMS has increased from 95.61% to 97.53%.

The above Acquisition is not expected to have any material impact on the earnings per share and net tangible asset per share of the Company for the financial year ending December 2011.

None of the directors or controlling shareholders of the Company has any interest, direct or indirect, in the above Acquisition.

By Order of the Board

mDR Limited