SOURCE: IDS Worldwide, Inc.

August 23, 2006 14:49 ET

IDS & HLS Have Concluded Arrangements With Bankers in Dubai

HLS and IDS Updates Dubai Events

ORLANDO, FL -- (MARKET WIRE) -- August 23, 2006 -- IDS Worldwide, Inc. (PINKSHEETS: IDWD) reported yesterday that the companies would issue a pre-market update today. The HLS and IDS executives at this hour are still concluding arrangements with their bankers in Dubai and filing government licensing documents for the new combined entity. As soon as the executives return to the office, the market update will be released to Market Wire.

IDS and HLS have concluded their bank meetings and are only requiring one additional government official document stamp for which the fees have already been paid to register the transaction documents. It is now 10:43 pm. In the UAE, Thursday and Friday are like our Saturday and Sunday in the United States so the government office will open Saturday morning in Dubai and the final document stamp will be put on the documents. This unforeseen delay in obtaining the final stamp is a formality and no further government agency approval for the deal is required.

IDS and HLS will issue the complete details to the wire services far in advance of the stock market opening on 08/28/2006.

Additionally, IDS and STS Joint Venture selling the HLS Bioflash Drive has received overwhelming response from both government agencies and GSA approved suppliers. The Joint Venture has received a steady stream of government orders around the clock in the last 24 hours under the OMB mandatory directive issued on August 10, 2006. Since it is a mandatory directive, GSA vendors, some who have ordered hundreds of units today, can immediately implement the HLS Bioflash security in any federal, state or local government agency. IDS and STS will issue a joint press release this coming Monday regarding all the government agencies' purchases and HLS Bioflash GSA implementation.

IDS has received requests to clarify certain points. Every investor purchasing IDS common stock (IDWD) will be eligible to receive the $2.35 cash per share from HLS, the distribution shares and the HLS dividend shares already received for stock holders who previously qualified (these Special Dividend shares have already been distributed to the IDS common stockholders in restricted form that owned IDS stock on the previously announced record date). It is necessary for IDS to separate the division into its own public company prior to HLS cash buyout of $2.35 per share.

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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