IDG Holdings Inc.
NEX BOARD : IDH.H

IDG Holdings Inc.

October 25, 2006 09:00 ET

IDG Holdings Announces Management Buyout of Integral Designs, and Quarterly Results

CALGARY, ALBERTA--(CCNMatthews - Oct. 25, 2006) - IDG Holdings Inc (TSX VENTURE:IDH) ("IDG") today announced that it has entered into an agreement with Evan Jones, the President of its subsidiary Integral Designs, whereunder he will purchase Integral Designs for $839,000. The purchase consideration is payable as to $409,000 in cash, $160,000 by transfer of 1,208,500 shares in IDG from Evan Jones to IDG for return to treasury and cancellation, and the balance of $270,000 in quarterly installments of $30,000.

The completion of the sale is conditional on approval by special resolution of two-thirds of shareholders present in person or by proxy, at the Annual and Special Meeting of shareholders on November 30, 2006, and by the TSX Venture Exchange.

IDG estimates that after closing of the sale, and after taking into account the dividend of $97,000 or 1 cent per share which is being distributed to shareholders this week; it will have net assets of approximately $900,000 or 11.5 cents per share, approximately two-thirds of which will be in cash. The board of directors intends thereafter to evaluate various options which will provide the greatest value for shareholders, including investment in an entirely new type of business, a reverse-takeover, or dissolution of IDG. In accordance with the policies of the TSX Venture Exchange, the listing of IDG's shares will likely be transferred to the NEX exchange, unless IDG enters into a new business or reverse-takeover before closing the sale of Integral Designs, which is unlikely.

IDG also announced its financial results for the 1st quarter ended September 30, 2006. Sales were down 30% for the quarter, compared with the same period in the previous year. There was a net loss of $37,000 for the quarter, compared with net income of $24,000 for the same period in the previous year.

IDG is listed on the TSX Venture Exchange and trades under the symbol "IDH".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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