raisng funds at 27.7 cents lol

**Revised my renetry to high 20's low 30's

Goodluck all!

In relation to the Group's property portfolio, the Company confirms that it has reached a
mature stage of negotiations relating to a number of conditional agreements and release
from these agreements at a cost of approximately $2 million to VDM Group. VDM Group
proposes settling this amount partially by the issue of shares and partially in cash. It is
intended that $1,708,470 will be satisfied by the issue of shares and $291,530 in cash. The
number of shares to be issued is to be determined by the average weighted market price
over the last 10 trading days to Thursday 6 August 2009. This will result in the issue of
6,150,000 shares at an issue price of 27.78 cents per share. The parties have instructed
their legal representatives to document this arrangement, which is anticipated to be
concluded in 14 days. The write down of the Group's property portfolio as summarised
above included a provision for the proposed settlement sum.