SOURCE: IDS Worldwide, Inc.

August 02, 2006 12:42 ET

IDS Updates Homeland Security Worldwide (HLS) Offer to Acquire IDS Common Shares

IDS Acquisition Talks Continue With HLS

ORLANDO, FL -- (MARKET WIRE) -- August 2, 2006 --IDS Worldwide, Inc. (PINKSHEETS: IDWD) reported that it is continuing its acquisition talks with HLS. IDS and HLS representatives have been in meetings everyday for the last ten days. HLS requested and received that there would be no standstill agreement commencing August 7, 2006 to prevent them from acquiring shares in the open market lower than the buyout price of $2.35 if the deal was not closed by the August 4, 2006 close of business.

IDS feels that when consummated the $2.35 per share will benefit the majority of the public stockholders. HLS has informed IDS that the buyout would still be an all cash offer. IDS again stresses that the buyout will not include the division which will have its own registration.

HLS had previously informed IDS it will use funding facilities with its current bankers and a $50 Million Bond offering overseas that has been planned previously for expansion and worldwide acquisitions. If accepted, its offer for IDS common stock will not involve stock but would be an all cash purchase offer.

IDS administrative offices will not divulge any further information not contained in this press release or take individual investor relations calls during these acquisition talks.

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.

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