The Board of Directors of mDR Limited (the "Company") wishes to announce that it has set up a joint venture in Singapore with Thai mobile software and information distribution specialist, Playwork Company Ltd.

The new joint venture company, Playwork Solutions Pte Ltd, will provide mobile value-added services initially in Singapore and subsequently other markets.

The Company will own 51% of the joint venture while Playwork Company Ltd of Thailand will hold the remaining stake. The joint venture will have an initial paid-up capital of $800,000.

Playwork Company Ltd, based in Bangkok, develops mobile software and information distribution systems and is a leading provider of mobile value-added services in Thailand. Founded in early 2004, Playwork Company Ltd owns "Software Mall" and "Playloads" - two leading mobile phone software and content distribution platforms in Thailand. Its partners include global content and software developers and mobile operators.

With the above joint venture in place, the Company's proposed 51% share acquisition in Em@gination Pte Ltd through the issue of 30,388,021 new ordinary shares, as announced by the Company on 28 January 2008, is no longer necessary and will not be proceeded with.