SOURCE: IDS Worldwide, Inc.

October 11, 2006 13:20 ET

IDS Responds to Market Rumors of CEO's Health and HLS Buyout

HLS Going Forward With $2.35 Cash Buyout of IDS Worldwide, Inc.

ORLANDO, FL -- (MARKET WIRE) -- October 11, 2006 -- IDS Worldwide, Inc. (PINKSHEETS: IDWD) is responding today to various market rumors regarding the health of IDS Worldwide, Inc. CEO and the HLS buyout for $2.35 cash per share of IDS common stock.

As reported by the Reg SHO list there is a significant amount of shorting taken place in IDS common stock and this continues to be the situation. IDS CEO Patrick Downs recently had a serious injury that will require multiple surgeries that have for the most part confined him to a wheelchair at various times. This has not precluded the CEO, except for extreme times, from communicating with executives in the US offices and the various offices around the world.

These various factions that haven taken short positions in IDS stock are trying to use this and other scare tactics to cause investor concern to aid their shorting agendas. However, this has not kept the remainder of IDS executives and employees from effectively running the company in his absence as documented by the continuous introduction of new products, distribution channel partners, increased revenue growth and the day-to-day business functions of the company. To the contrary the company still continues to grow at a very rapid pace throughout the world. IDS and HLS executives continue to spend their time growing revenues and profits and will not be constrained by the buyout talks and/or the price fluctuations of the company stock, as it should be.

IDS also dispels the rumors concerning the buyout of IDS common stock by HLS. Although the serious injury to the company CEO has sometimes made him unavailable for these buyout talks the negotiations have been concluded as to the terms so this does not affect the buyout. Furthermore, even though certain events have been slowed by the Holy month of Ramadan in the Muslim world as reported the final financial talks are being held in UAE this week. To that point, HLS executives will meet with their bankers tomorrow morning at 9:30am UAE time to finalize structure of the previously reported $50 million bond to attach to the tender documents for submission and approval.

IDS would caution anyone making investment decisions guided by these market rumors and/or false internet postings which would cause them not to participate in the approved HLS $2.35 per share cash offer for all outstanding shares of IDS stock. IDS felt it was necessary to respond to these rumors in order to give shareholders the actual status of both the health of IDS' CEO and the HLS buyout. The majority of the shares have already agreed to the deal and there will be no further negotiations to the buyout.

In closing, IDS is very proud of its accomplishments over the last year with the introduction of leading technology products that have made the company attractive enough to produce this cash buyout by HLS Worldwide that was planned to reward its long-term shareholders. This has been accomplished without concern for short-term traders and/or those in the market that wish to avail themselves of shorting procedures as substantiated by the Reg SHO list.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are forward-looking statements are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties, or other factors which may cause actual results, performance, or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels. All information in this release is as of the date of this release. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.

Contact Information