SOURCE: IDS Worldwide, Inc.

January 30, 2006 09:28 ET

IDS Worldwide Solutions, Inc. Introduces Biometric Identification System With Proprietary 384 Bit Algorithm

IDS to Pay Special Dividend Valued Between $.87 and $1.01 to Common Stockholders

ORLANDO, FL -- (MARKET WIRE) -- January 30, 2006 -- IDS Worldwide Solutions, Inc. (OTC BB: IDWD) (IDS) leverages real-world, hands-on experience with all biometrics -- including fingerprint, face, and digital signature systems -- to successfully design, integrate, and deploy access control, IT security, smart card, transportation, and ID systems solutions. IDS is one of the only biometric security companies to successfully combine multiple biometric identification verification factors in one ID Card. IDS will pay a Special One Time Dividend valued between $.87 and $1.01 to common stockholders of IDS Worldwide, Inc. in the 1st quarter of 2006. IDS will announce the ex-dividend date after the next Board of Directors meeting on February 8,2006.

In January of 2006 the FTC announced that Identity Theft was the number one consumer complaint in the country. In December 2005 the SEC issued notice to all brokerage houses with online brokerage accounts that they must take immediate action to protect clients stock portfolios from online theft of accounts by hackers who in past weeks have stolen numerous entire stock portfolios of brokerage clients due to inferior security controls. IDS Homeland Security Division has created the world's first true biometric security (using capacitance scans, not live digital scans which are not hack proof) combined with IDS own proprietary algorithm which uses 384 Bit encryption. IDS was awarded the Best New Data Security Product of 2004 for this proprietary technology and is releasing the product to the Banking, Insurance, Investment Banking Houses, Medical Community (meets increased HIPPA security requirements) and Government Sectors in the current quarter of 2006. This new technology not only uses the highest biometric standard of capacitance sensors but encrypts all data sent with the authorization across the internet backbone. The judges that determined the award for the Best Data Security Product determined it would take a bank of Cray Supercomputers 12 years to decode IDS proprietary algorithm making it the strongest encryption software in the world. IDS Biometric Technology and proprietary algorithm establishes the highest level of security now available anywhere in the world. Even if a customer's laptop or server is stolen access to the hardware would be blocked without the proper "live beating fingerprint" of the authorized user combined with the 384 Bit algorithm. This new technology will vastly improve the security and portability of all medical records. This information maybe stored on IDS proprietary Biometric USB Flash Drive embedded with IDS 384 Bit Encryption. Even if the USB flash drive is lost or stolen it can only be accessed by the patient's live fingerprint authorization.

It has been reported in a recent study that the Department of Homeland Security's spending on biometrics systems integration totaled $650 million in 2004 and is projected to reach $1.9 billion by 2011. In May 2005 the Real ID Act was passed as a rider on an appropriations bill to fund the Iraq war and tsunami relief. Under the act, each licensed driver will receive on their driver's license a national identification number, which he or she will have to provide to use any federally regulated service, such as airlines or banks. It has also been reported that biometrics will be used as part of the new federal identification process.

It's estimated that the market for machines that screen people will grow to $3.5 billion in 2006 and to $9.9 billion in 2010. Luggage and large parcel screening will grow to $1.2 billion in 2006 and to $3.5 billion in 2010, and the market for hand-held baggage will increase to $1.25 billion in 2006 and $3.4 billion in 2010.

The National Institute of Standards and Technology, however, has said fingerprints are more reliable. "Fingerprints are more accurate than face recognition in operational environments," said Martin Herman, chief of NIST's information access division. NIST, however, has not tested facial recognition reliability in three years he said.

In 2002, NIST found that the accuracy of two-fingerprint matching was 99.6 percent; facial recognition was 90 percent. "We believe there have been improvements in facial recognition since then," he added.

The new cards were mandated in Homeland Security Presidential Directive 12, titled "Policy for a Common Identification Standard for Federal Employees and Contractors." More detailed objectives for the Personal ID Verification (PIV) Card were laid out in Federal Information Processing Standard 201, and specifications for the standard are spelled out in a series of special publications from the National Institute of Standards and Technology.

The company's other offerings include Biometric scan systems and services for biometric data capture; mobile systems for on-the-spot ID; and backend standards-based modules and software components for biometric matching and data mining. In addition, the company provides biometric identification hardware, which can be utilized for various security-related markets to conduct background checks; travel and commerce via identification documents; check identity fraud in government and civil ID programs; and check access to secure areas and networks. The company's products enable government, banking, law enforcement agencies, travel, transportation, corporate enterprise, and the healthcare sectors to implement secure identification procedures and safeguard sensitive data archives.

IDS CEO Patrick Downs stated, "The Company is very pleased by the reviews of our Biometric Products by Homeland Defense Experts in Washington. The panel reviewing our Homeland Defense Product line rated IDS as one of the top two technologies in the world. IDS believes that due to the mandate of Homeland Security Presidential Directive 12 and Federal Information Processing Standard 201 that IDS is poised to capture significant increased revenues from its Bio-Track™ products and this multi-billion dollar biometric security market." A complete demonstration of the system can be viewed at IDS Worlwide Solutions, Inc. corporate website at Under the current news section.

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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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