SOURCE: IDS Worldwide, Inc.

August 21, 2006 09:30 ET

IDS Reports FOX News Coverage Picked Up by Affiliate Stations Generating Orders Worldwide

HLS Bioflash Purchased Online by Fortune 500 Companies and Governments Worldwide

ORLANDO, FL -- (MARKET WIRE) -- August 21, 2006 -- IDS Worldwide, Inc. (PINKSHEETS: IDWD) reported today that IDS CEO Patrick Downs featured interview segment on FOX News and distributed to nationwide affiliates demonstrating the proprietary encryption and software for the HLS Bioflash USB drive has generated orders worldwide and caused a 500% spike in website traffic. The news segment can be seen online at

The HLS website received orders from Israel, Germany, Switzerland, Canada, US Government agencies, (under IDS/STS Joint Venture government agencies can purchase under set aside rules $3 Million of HLS biometric drives per order even prior to inclusion on the GSA Schedule) and key Fortune 500 companies consisting of leaders in the software and automotive industries. Government agencies responded quickly to the FOX news broadcasts scheduling a series of meetings beginning today in Washington with IDS/STS Joint Venture teams. Several key agencies have substantial amounts of funding remaining to purchase IT security technology which must be spent by September 30, 2006. The majority of these agencies have already received, including top agencies that have purchased the product online, the HLS Biometric Encryption Flash Drive for testing in preparation for deployment.

IDS CEO Patrick Downs stated, "HLS this week has addressed misinformation posted by uninformed sources in various internet chat rooms that the flash drive is an OEM product. Nothing could be further from the truth. HLS and Samsung jointly developed the proprietary memory chip in the flash drive (which is not available to any other company in the world to purchase from Samsung) and IDS software programmers and engineers working with AuthenTec SDK wrote the proprietary software enabling the world's best biometric chip from AuthenTec to work in unison with HLS 384-Bit 18 layer deep encryption technology. HLS operates a 100,000 sq. ft. high tech manufacturing facility to produce the flash drives and then the devices are shipped to IDS to embed the encryption and computer locking software." Investors wishing to verify the proprietary nature of HLS Bioflash Drive can do so thru either Samsung and/or AuthenTec as opposed to uniformed anonymous internet posters with varying agendas.

Along the same lines in correcting misinformation in circulation IDS wishes to state categorically that ALL INSIDER'S STOCK was removed from the DTC some months back and every share still remains in restricted certificate form (all insider stock has approximately one more year of restriction, thus no insider has filed to register any stock for sale) and not on loan placed in any brokerage house anywhere in the world. Any reference to insiders selling stock thru UBSS is patently false and a misguided attempt to manipulate stock market prices. This information can be verified by the company's transfer agent and should be considered the only source of accurate information regarding insider stock.

The significance of the encryption is not that it is 384-Bit, but that it is also 18 layers deep thus making it the highest level of encryption on the market and taking a Cray Supercomputer 12 years to decrypt one line of data. Government and Corporate technology experts who have tested the device have immediately recognized the superiority of HLS technology leading to immediate orders.

IDS previously signed joint venture with STS has produced immediate results in Washington with meetings and product demonstrations with the majority of the top government agencies. The OMB issued a directive to all government agencies on August 10, 2006 that all agencies must immediately update their IT security to encrypt all portable data storage devices. Most agencies still have not met these criteria at this date. This mandate also includes any government agency that currently allows personnel to use standard USB drives lacking biometric encryption which must be replaced immediately. The Veterans Administration, which has $200 Million for IT security which must be spent by fiscal year end September 30, 2006, has already held meetings with STS executives last week and will meet again this week. STS will also conduct follow up meetings with the IRS, TSA and Senator's that have requested private demonstrations of this revolutionary biometric encryption flash drive.

Under the STS status as Disabled Veterans Owned Company any government agency can purchase up to $3 Million of HLS products prior to be placed on the GSA List. STS has held several meetings regarding HLS Biometric Flash Drives being placed on the GSA schedule and GSA has informed STS that they are expediting this process due to the demand from various government agencies.

HLS has instituted a 25% rebate to eligible Active Military Personnel, Veterans, Teachers and Students for their purchases of the HLS Biometric Encryption USB Drives. HLS feels these groups have a great risk of exposure to data and identity theft that can be completely eliminated thru HLS technology. HLS Bioflash is the only data security device in the world insured by A rated insurance companies for $20,000 worth of coverage for any identity theft or computer virus even if you identity theft occurred by mail or any other reason including internet and computer theft.

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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