SOURCE: IDS Worldwide, Inc.

July 07, 2006 11:24 ET

IDS Updates Homeland Security Worldwide (HLS) Offer to Acquire IDS Common Shares

HLS Informs IDS Regarding Acquisition Financing

ORLANDO, FL -- (MARKET WIRE) -- July 7, 2006 -- IDS Worldwide, Inc. (PINKSHEETS: IDWD) IDS reported yesterday that HLS has made a counter to the offer received from WSA to purchase IDS Common Stock.

HLS has informed IDS it will use funding facilities with its current bankers and a $50 Million Bond offering overseas that has been planned previously for expansion and worldwide acquisitions. If accepted its offer for IDS common stock will not involve stock but would be an all-cash purchase offer.

HLS has increased its offer to $2.35 per share and informed IDS upon acceptance of the offer HLS would have its banker JPMorgan Chase set up the appropriate closing escrow accounts. IDS has informed HLS that upon acceptance of the offer HLS will have to pay a $5 Million non-refundable deposit to be placed in the escrow accounts till closing.

In another news HLS informed IDS that the first shipments of HLS Biometric Encryption Flash Drives cleared US Customs today and deliveries have begun to the dealer network in the United States.

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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