SOURCE: IDO Security, Inc.

IDO Security, Inc.

May 23, 2012 09:01 ET

IDO Security Releases Financial Results for 1st Quarter 2012 Ended March 31, 2012

Investors Agree to Modification of Debt on the Outstanding Notes

NEW YORK, NY--(Marketwire - May 23, 2012) - IDO Security Inc. (OTCBB: IDOI) developer of the innovative MagShoe™ shoe scanning device (SSD), today announced that the Company has reported its 1st quarter financial results for the three months ended March 31, 2012.

Revenues for the three months ended March 31, 2012 were $204,564 compared to $19,161 for the corresponding period in 2011. Revenues for the 1st quarter also exceeded total revenues for fiscal 2011 of $202,787. The increase in revenues is primarily attributable to the substantial increase in the number of MagShoe devices delivered to customers in Africa, Europe and the Far East.

Net income for the three months ended March 31, 2012 was $1,536,601 compared to a net loss of $2,171,898 for the corresponding period in 2011. Net income for the three months ended March 31, 2012 included a one-time gain attributable to the extinguishment of debt in the amount of $2,926,717. Effective January 1, 2012, holders of approximately 73% of the outstanding principal amount of the Company's Notes had agreed, among other things, that the Company may deem the maturity date of the outstanding notes (including any issued after January 1, 2012) to be December 31, 2015, lower the interest rate to 2.5% annually and the use of a fixed price of $0.30 per share (post-split) for the determination of the payment (in shares of common stock) of monthly principal and accrued interest payment on the outstanding notes.

Michael Goldberg, President of IDO Security, said, "We are pleased that revenues continued to increase over the last 12 months and with the recent concerns of security threats such as in Afghanistan, we believe the MagShoe remains an ideal solution to close the security gap in the lower extremities. The successful efforts from our marketing and sales team have increased our sales of the MagShoe into additional markets above and beyond airports and government facilities to now include correctional facilities, mints and other loss prevention markets. We will also look to add other state-of-the-art security devices to put through our distribution system to expand our product line and increase the awareness of IDO Security as a seller and supplier of security devices."

A more detailed description of the business, results of operations and financial statements are contained in the Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 21, 2012.

About IDO Security, Inc.
Headquartered in New York with a subsidiary in Israel, IDO Security designs, develops and markets the patented MagShoe™ shoe scanning device (SSD), filling a critical void in today's detectors by extending screening to the lower body and feet. MagShoe™'s "shoes-on" design maximizes security, thoroughness and accuracy while eliminating the need to remove shoes for increased convenience and safety; neither invasive nor harmful to the body as some of the other screening devices currently used in the marketplace. Ideal for security and loss prevention at virtually any facility, MagShoe™ is currently in use worldwide at international airports, cruise lines, government agencies, correctional facilities, mints and more.

For more information on the Company, please visit: http://www.idosecurityinc.com

This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry, and that reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based upon our current expectations about future events. These forward looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed as a result of a number of factors, including but not limited to, anticipated trends and challenges in our business and the markets in which we operate, our expectations regarding our expenses and revenue, the ultimate market acceptance of our products, the sufficiency of existing capital resources, our plans for future products and enhancements of existing products, the ability to secure additional sources of financing, general economic conditions, the availability of competing products and changes in technology, legislative or regulatory changes that affect us and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1A of IDO's Annual Report on Form 10-K for the year ended December 31, 2011, and in our other filings with the Securities and Exchange Commission at www.sec.gov. We undertake no obligation to revise or update any forward-looking statement for any reason.

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