Mindray Medical to Acquire a Controlling Stake in Hunan Changsha TDR Biotech; Terms Not Disclosed

Mindray Medical International Limited (NYSE: MR) announced today an agreement to acquire a controlling stake of Hunan Changsha Tiandiren Biotech Co., Ltd.. The terms of the agreement were not disclosed as the transaction is non-material to Mindray's financial statements.

Founded in 1997 and based in Hunan, China, TDR is a domestic manufacturer of microbiology analysis solutions that specialize in microbial identification and antibiotic susceptibility testing (ID/AST) and the blood culture system. Clinical laboratories use the ID/AST system to identify microbes and perform antibiotic susceptibility testing, while they use the blood culture system to recover pathological organisms.

The rapid reporting of ID/AST test results and a continuous-monitoring blood culture system can result in better antibiotic management. Last year, the market for ID/AST and blood culture system was estimated at approximately $139 million in China. It is expected to grow 15-20% annually. Internationally, the market was estimated at $2.25 billion in 2010 and is expected to grow 5% annually.

Through this transaction, Mindray will be able to combine its strong platforms in sales, manufacturing, R&D, quality assurance and other resources with TDR's technology and expertise in the microbiology analysis business. TDR's strength in reagents is expected to complement Mindray's strength in analyzers.