SOURCE: IDS Worldwide, Inc.

May 22, 2006 10:31 ET

IDS Worldwide, Inc. Clarifies Division News

HLS Signs Deal With AIG Insurance Company and Updates Final Results of Asia Security Expo

ORLANDO, FL -- (MARKET WIRE) -- May 22, 2006 -- IDS Worldwide, Inc. (PINKSHEETS: IDWD) today issued a clarification of IDS after market press release concerning the portal.

IDS, after conducting internal audits of the portal, realize that the company's previous projections of EPS in the 1st of approximately $.21-.23 are now extremely underestimated. This previous EPS projection was the original basis for the planned filing of an IPO consisting of Units with one common share at $5.00 and one warrant exercisable for 3 years at a strike price of $7.50

Additionally, IDS will launch today a massive direct mail campaign to auto dealers, truck dealers, boat dealers, cycle dealers and RV dealers which will allow these clients to place up to 15 premium ads per month including up to 9 pictures, unlimited text description, car fax if applicable, email and website links, live audio testimonials and/or special announcements from the dealership regarding current sales for only $50 per month. This cost will be the lowest of any internet portal competitor in the marketplace, allowing to achieve rapid market penetration of each of these market segments. Also for the 1st time ever these clients will be able to use IDS proprietary software administration program to update their 15 ads in real time (change photos, cars, pricing, descriptions) and the changes will be live in less than 2 seconds after hitting the submit button. Additionally, clients in each of these market segments who may already have internet sales divisions will be able to utilize IDS' proprietary RTA software solution which will be embedded in their ads on the portal which requires no software by the potential online client that will allow the advertiser to communicate in real time similar to MSN Messenger, transmit product brochures, sales quotations and/or application for purchasing or financing that can be filled out electronically in PDF format and printed by either client or advertiser.

Recent events including a dramatic increase in the number of ads being placed on the site, the upgradation of the source code and data center hardware that has resulted in world class loading and search speeds has led IDS to re-examine projected revenues and profits for the coming year. IDS was previously projecting EPS of between $.21-23 per common share of IDS Worldwide, Inc. for the coming year. Now independent reviews after audits of the portal and the huge block of shares (to be carried on IDS Worldwide, Inc.) books of the HLS Worldwide, Inc. dividend being paid on June 15, 2006, somewhere in excess of 40 Million shares, have produced vastly different forecast for revenues and EPS for the coming year. IDS Worldwide, Inc. now expects the portal revenues projection to be in the range of $100-175 Million and EPS in a range of $.75-$1.05 per share. Significant events in China and events in the United States to be released this week have led to this re-evaluation.

The company has decided to retain the services of one of the top 5 Wall Street firms as its advisor relating to the division. IDS has made this decision since the firm's anticipated revenues when considering an IPO with shares at $5.00 and accompanying warrants at $7.50 were significantly lower. The firm chosen shall assist IDS executives in examining various business strategies, including but not limited to, the purchase of portal by a publicly traded NASDAQ company, underwriting an IPO for division, and various joint international joint venture partners. Due to the increased complexity of various offers to the company over the last 10 days, IDS executives feel that it is in the best interest of its shareholders to get an outside independent analysis of the best track for IDS to take regarding the division of the company. IDS believes that its shareholders would be best served by IDS retaining the services of a top Wall Street firm that has been involved in public offerings in the past in the internet portal market segment. IDS will request these firms to submit their proposals no later than May 29, 2006.

Simultaneous to the upgrades made to the portal, IDS executives in the past 10 days have made significant advances in the company's plan for expansion in China. Upon the completion of the Karachi Security Expo and IDS executives' return to the company headquarters in Pakistan on Monday, IDS will release the details of a joint venture agreement with our new Chinese partners. Some of the partners to the joint venture were instrumental in the development and marketing of IDS, thru its joint venture partners, will now be able to complete the translation of the portal into the various Chinese dialects in the next 45 days and, upon completion of the quality control analysis, launch the portal in the next 60 days to the over 1 Billion internet users in China.

IDS will await the advice of the Wall Street Brokerage house retained before making its final decision regarding the division. Regardless of the business track chosen, whether IDS is advised to continue with its original plan of an IPO or IDS is advised it would be better for IDS' long term shareholders to be acquired by a reporting public company in the same market segment, the stock distribution announced previously by the company on a 1:1 basis will not be altered. In order for a stockholder to qualify for this distribution of shares they must be a record holder of the date when the acquisition of the is closed by IDS and a reporting publicly traded company and/or the date a registration statement is filed for an IPO for

HLS executives to announce that one of the world's largest insurance companies conglomerates in the world has formed a joint venture with HLS that will automatically insure HLS clients that have our security systems installed to be insured against fire, theft, burglary, lightning, armed holdups and earthquakes. This policy will only cost HLS approximately $3.00 per customer per month and is projected to increase sales closing ratios by over 25% on the first call. This is the first time this full service protection has ever been offered and further projects HLS as the leading Fire and Security Firm in Asia consistently improving the quality of our service and technology for our clients.

HLS reported that by the end of the Security Expo, 38,000 security industry executives had visited the HLS booth and requested a brochure and/or quotation information from HLS Executives. HSL had over 350 Petroleum Executives and Oil Sheiks attend HLS Microwave and Thermal Intrusion Technology Symposium and live demonstration of the technology. These symposiums resulted in an immediate request for deployment for 11 different pipeline and refinery project site surveys. IDS previously reported that the top two Executives for Brinks and ADT in the region had resigned their positions and signed 3-year exclusive employment contracts to lead HLS staggering growth. The addition of these two top executives and the strength of HLS technology and brand recognition in the region enabled HLS to begin operations today with an additional 25 security company partners adding over 350 new sales agents and approximately 375 new technical installers. At a closing dinner the new dealers signed informed HLS that their average monthly installations would be substantially higher than previously reported in HLS last press release. Each new dealer that was signed during the show is projecting an average of 50-60 new installs per month. HLS plans to sign approximately 50-75 dealers which could not be trained and processed during the show.

The addition of these new dealers should increase net profits for the HLS division approaching $500,000 per month this coming year.

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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