SOURCE: IDS Worldwide, Inc.

May 23, 2006 09:29 ET

HLS & STS Update Homeland Security Demonstration Concluded in Texas on May 22, 2006

HLS Joint Venture Partners, STS, Demonstrate HLS Bio-Track ID Card and Biometric USB 384-Bit Encryption Flash for Homeland Defense and Veteran's Administration

ORLANDO, FL -- (MARKET WIRE) -- May 23, 2006 -- IDS Worldwide, Inc. (PINKSHEETS: IDWD) today reported a staggering development during meetings in Texas former Deputy Secretary of Homeland Defense, Senator Tom Loeffler and other powerful lobbyists from Washington. All in attendance were shown live demonstrations of the HLS Biometric 384-Bit Encryption USB Flash Drive and the Bio-Track Identification Card that was called for immediate deployment both by Homeland Defense for 750,000 Port Workers and the President during his address to the nation last week concerning changes in Immigration Policies and Security Procedures. Upon the completion of the technology demonstrations all in attendance stated they would immediately be flying back to Washington to inform the top decisions makers in Washington that HLS technology for the Biometric Identification Card and the Biometric Encryption USB Flash Drive could immediately be supplied by HLS to fulfill both the President's request and the latest Homeland Security directive for U.S. trade port workers.

During this meeting after both technology demonstrations Former Senator Tom Loeffler stated he would be taking it to his friend at the Veterans Administration James Nicholson this morning. The meeting started in Texas yesterday at 2:30 pm EDT and during this two hour meeting Veterans Administration Secretary held a press conference about an hour into the meeting with the world press announcing that the sensitive data for 26.6 Million Veterans was stolen during a burglary at a VA analysts home where a computer disk with this sensitive data was stored.

If HLS Biometric Encryption Drives had been deployed prior to this burglary it would have rendered the data useless and completely encrypted in an unbreakable proprietary algorithm developed by HLS that is imbedded on the drives demonstrated yesterday. Both Homeland Defense and the Veterans Administration will now see this technology firsthand this morning in Washington.

IDS founders, Patrick Downs and Yasar Khawar invented the Biometric Tamper Proof Identification Card and Software in 1999. The card was shown to Congressman two days after 9/11 and also again at the request of Homeland Defense experts in Washington in December of 2004. IDS informed the homeland defense experts in attendance that IDS Overseas Headquarters was located in Lahore, Pakistan, and Pakistan was the only country in the world at the time that every man, woman and child carries a Biometric Identification Card that exceeds all the requirements called for in President Bush's address to the nation last week and Homeland Security directive for immediate deployment for the same tamper proof Biometric Identification Card for 750,000 port workers in the United States.

This directive from Homeland Security was published last week in the Wall Street Journal, USA Today and major newspapers across the country. In this article Homeland Security stated in would cost approximately $100-$139 to issue each card. IDS after the demonstration in Washington 2004 and again yesterday in Texas reiterated that HLS could begin deployment of the cards immediately and the cost, as told in 2004 demonstration, would not exceed $20 per card including software for tracking and updating the information on these Biometric Identification Cards.

The initial productions of the HLS USB Flash Drives are sold out and HLS Worldwide, Inc. expects additional quantities to hit the US market in the next 10 days. HLS Worldwide, Inc. executives informed IDS today that they have made acquisitions and added additional factory capacity to be able to achieve 1 Million Unit per month production by the end of this quarter (July 30, 2006).

IDS CEO Patrick Downs, stated, "IDS and HLS Worldwide, Inc. are very pleased that the IT security experts and their end user clients have validated this break through technology for the highest level of IT security combing biometrics, proprietary software and the highest level of encryption available. Every Market Segment, doctors, lawyers, government agencies, and private industry have unanimously stated they would buy the product immediately." The initial HLS Biometric 384-Bit Encryption USB Flash Drive is expected to retail around $179.00.

IDS business plan for launching 995ad.com in China starting with the automobile section was further validated in an extensive article just released. The article stated that the fastest growing online segments attracting over 111 million internet users and millions of page views per month were online automobile sites for Chinese consumer to gather information before their purchases. The entire article can be seen at the following link:

http://www.businessweek.com/print/globalbiz/content/may2006/gb20060517_635959.htm

IDS is confident that even capturing a small percentage of these 111 million users surfing the net for online auto sites will produce significant revenues and profits for the coming year for its stockholders. IDS expects the translation and launch in China to be completed in the next 60-90 days. The IDS 995ad.com portal will be launched with the URL of http://www.995ad.cn.

IDS was just informed yesterday that all brokerage houses in the United States have received official notification of the Special Dividend pertaining to the Homeland Security Division of IDS sale and payment date of June 15, 2006 by the DTC. IDS has previously reported that the company will remain a large shareholder in the acquiring company HLS Worldwide, Inc. following the special dividend distribution.

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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