SOURCE: IDS Worldwide, Inc.

June 13, 2006 10:02 ET

HLS Worldwide, Inc. Reveals Dividend Details in Letter to Shareholders Who Qualified for Special Dividend

HLS Today Set Record for Most New Security Clients Installed in One Day

ORLANDO, FL -- (MARKET WIRE) -- June 13, 2006 -- IDS Worldwide, Inc. (PINKSHEETS: IDWD) announced today that HLS Worldwide reported that the company set a new world record for the most new security clients installed in one day for just one city. HLS sales teams and engineers today installed 125 new clients in the last 12 hours. This record increase in business is a direct result of Karachi Security Show, (when 38,000 security experts and government officials visited HLS Booth) and the nationwide coverage of IDS and HLS exploding growth that has been on the front page of newspapers and every major television station.

HLS in less than one year has been established as the most recognized brand name for home and business security. HLS previously reported that due to this recognition as being the fastest growing security company in the Gulf and Asia Region, HLS was able to hire away two top Senior Security Executives from Brinks and ADT this quarter.

HLS will include a corporate overview of HLS Worldwide, Inc. and its operations both in the United States and internationally. IDS will consult with its legal advisors, Holland & Knight, to determine if this letter coming from a "currently" private company to shareholders receiving the dividend in HLS Worldwide, Inc. explaining the company's operations and moving to the US Stock Exchange must also be released to IDS shareholder who did not qualify for the dividend. The dividend shares certificates will be mailed out by the transfer agent representing HLS Worldwide, Inc. after the payment date of June 15, 2006. IDS Worldwide, Inc. is not directly involved in this disbursal of the dividend certificates.

IDS would like to clarify certain misconceptions about our previous announcements regarding the retaining of Holland & Knight as our legal advisors. Holland & Knight with offices worldwide including Beijing China, will be instrumental in advising IDS regarding and, as to valuations, private and/or public sales of equity in the public markets in the current quarter. and may likely go public on the Hong Kong exchange and trade in the US markets as an ADR (American Depository Receipt). Hong Kong stock exchange has experienced tremendous growth in the past few years and currently many internet firms have chosen to go public on that exchange due to the much higher valuations paid for stock in this market segment. Holland and Knight heavy experience in overseas markets will be invaluable.

This is no way means that IDS is still not going to use a top Wallstreet Brokerage House in connection with the division and certain new technologies that have yet to be publicly announced by HLS which we feel will even exceed the sales of the HLS Biometric Flash Drive.

STS and IDS joint venture will begin meetings today to review the Navy's 86 page contract awarded to the joint venture in the past few weeks. The total contract was in excess of $37 Billion and STS has been awarded a significant portion of the contract under the set aside rules for Disabled Veteran Companies.

IDS will also report on various contracts and negotiations currently underway involving additional purchase orders and channel distribution agreements expected to close in the coming quarter of over $300 Million for the HLS Bio-Flash Drive. HLS will also release information in July concerning additional proprietary biometric products whose preliminary sales projections will exceed the sales of the HLS Bio-Flash Drive.

HLS Worldwide, Inc. has reported to IDS that it has undertaken a major facilities expansion overseas in Pakistan and Dubai including plans currently underway to hire an additional 430 factory workers to keep up with the demand for the HLS Bio-Flash Drive.

HLS announced plans over the weekend for the beginning of construction of a 100,000-150,000 sq.ft. headquarters in Dubai. HLS current headquarters which opened 6 months ago will be kept as a monitoring station for the security and armed response teams. Dubai currently has over $150 Billion in construction projects underway and as noted on a special report on CNBC last evening is fast becoming the most advanced emerging city in the world. HLS is strategically poised to capture a majority of the fire and security contracts for this new construction and are currently working with the two largest construction groups in the country alone accounting for $63 Billion in construction currently underway. HLS Dubai operations have already been awarded contracts for 250 installations for fire and security in the past month.

HLS projects that the Dubai operations will result in excess of $250 Million in revenues this year with net margins of approximately 45%.

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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