Memstar completes RTO of MediaStream

Memstar completes RTO of MediaStream; invests $22m in new production facility for membrane products

• Memstar starts trading on 3 October 2007

SINGAPORE, 2 October 2007 – Memstar Technology Ltd. ("Memstar" or together
with its subsidiaries, the "Group"), starts trading tomorrow on the SGX-SESDAQ
following the completion of a reverse takeover of MediaStream Limited.

Memstar, which was founded by Dr Ge Hailin, a Chinese chemical engineer who has
been a permanent resident in Singapore since 1992, is a leading manufacturer and
distributor of PVDF (polyvinylidene fluoride) hollow fibre membranes and membrane
products. Memstar is one of the few PVDF hollow fibre membrane manufacturers in the
world. In the PRC, Memstar’s membrane products are widely used in both industrial and
domestic/commercial applications.

Riding on the growth in demand for PVDF hollow fibre membrane and membrane
products, Memstar turned in revenue growth of 1,326% to RMB60.5 million in the latest
financial year ended 30 June 2007, from RMB4.2 million in the financial year ended 30
June 2006. Correspondingly, its profit after tax increased to RMB40.7 million, from a profit after tax of RMB0.2 million.

Against a backdrop of robust industry prospects in the PRC and overseas, Memstar has
mapped out an expansion plan to increase its production capacity as well as the range of
its membrane products which are used by water purification and wastewater treatment
companies.

As its existing plant in Guangzhou which began operations in December 2005 is currently
running at almost full capacity, Memstar has started work on the construction of a second
production facility in Mianyang, Sichuan province.

Upon completion in 2008, this second production facility costing an estimated $22 million
will increase the Group’s membrane production capacity from the current 0.6 million sq m
to at least 1.8 million sq m per year as well as its production lines to nine. In the view of
the directors of Memstar, this will establish Memstar as the largest PVDF hollow fibre
membrane manufacturer in the PRC.

"With the expansion, we will be in a good position to meet the growing demand for
membrane products especially in the PRC," says Dr Ge who has been appointed CEO of
Memstar. "We intend to further expand the production space in Mianyang to establish
additional production lines so as to increase its production capacity to 3 million sq m per
year, if the need arises."

Besides the new production facility, Memstar will continue to expand its current product
line, strengthen its R&D capabilities to develop new membrane products for different uses, increase its marketing and promotional activities to strengthen the Memstar brand and also to expand into overseas markets.

For its industrial membrane products, which accounts for the bulk of its revenue, Memstar is working on new products to target a broader range of industries. The industrial applications are the submerged membrane and pressurised membrane modules that are used in water/wastewater treatment, wastewater reclamation, seawater desalination, food, pharmaceutical, chemical, power generation, petroleum, bio-separation and for other separation processes.

For domestic/commercial water purifiers, Memstar aims to develop new membrane
products that work under different environmental conditions such as outdoor units, units
operating at different water pressures and ultra compact units. It is also developing
membrane products that combine different technologies such as activated carbon
adsorption, ion exchange and RO (reverse osmosis) to treat challenging raw water
sources.

On the R&D front which is anchored in Singapore, Memstar has 7 researchers with
combined membrane production and application experience of over 80 years. The
financial support from EDB (Economic Development Board) is an endorsement of the
Group’s R&D capabilities. Memstar intends to embark on research projects in close
collaboration with renowned research institutes including Nanyang Technological
University in Singapore and Chinese Academy of Engineering Physics in Mianyang, PRC, on a project-by-project basis.

Memstar is also keen to penetrate new overseas markets as part of its efforts to ensure
sustained growth and to build its brand. For a start, it has collaborated with strategic
partners to bring its water purifiers and industrial membrane products to Malaysia and Indonesia and will continue to grow its business outside the PRC.

For the financial year ending 30 June 2008, Memstar intends to set aside 10% of its net
profit attributable to shareholders for dividends.

About Memstar Technology Ltd.
Established in 2005, Memstar is primarily involved in the manufacture and distribution of
polyvinylidene fluoride (PVDF) hollow fibre membrane and membrane products.
With its strong Singapore-based research capabilities and technologically advanced manufacturing facilities located in the PRC (Guangzhou and Mianyang), Memstar is one of few PVDF hollow fibre membrane manufacturers in the world. Its membrane products are used in both industrial and domestic/commercial applications. Industrial applications are the pressurised membrane modules and submerged membrane modules that are used in water/wastewater treatment, water reclamation, seawater desalination, food, pharmaceutical, chemical, power generation, petroleum, bio-separation and other separation processes. The domestic/commercial applications include membrane water purifiers or integrated water purifiers for households, commercial buildings, small businesses, hotels, schools and hospitals.