SOURCE: IDS Worldwide, Inc.

March 30, 2006 09:06 ET

IDS Worldwide, Inc. HLS Division Agrees to Purchase 100,000 sq.ft. Factory

HLS Purchases Factory to Meet Demand for Biometric Encrypted USB Flash Drive

ORLANDO, FL -- (MARKET WIRE) -- March 30, 2006 -- IDS Worldwide, Inc. (OTC: IDWD) today announced that IDS Homeland Security Division (HLS) in an all cash deal agreed to purchase a 100,000 sq. ft. factory for the production of HLS proprietary Biometric Encrypted USB Flash Drive. This factory will enable HLS to initially produce 500,000 units per month and expansion capability to 1,000,000 units per month in 90 days. HLS will initially hire an additional 150 technical staffers for this new factory.

HLS previously announced that it signed a $50 million Distributor Agreement for North America for the Healthcare Industry to meet HIPAA requirements with Strategic Acquisitions LLC. This agreement covered an initial order of 500,000 units at $100 per unit. Subsequent units will be sold at $125 per unit. HLS will receive a 15% Export Rebate in cash from the Pakistan Government, each month, for the added value from manufacturing operations in the new factory. Combined with the Pakistan 15% Export Rebate and a net profit on this order of $30 per unit, will result in a net profit of approximately $15.5 Million on this initial order. Strategic Acquisitions LLC was also granted first right of refusal for additional biometric technology for the healthcare industry that has not yet been released by HLS. HIPAA legislation now requires healthcare facilities such as doctor offices and hospitals to undertake security measures to assure both the security and portability of a patient's healthcare records. This security and portability cannot be accomplished with outdated security measures such as computer passwords and outdated file protection systems. The average doctor's office contains approximately 10-20 computers, and most hospitals' computer terminals number in the hundreds.

HLS Biometric Encryption USB Flash Drive, with HLS proprietary 384-Bit Encryption Algorithm, is the first of its kind to be introduced to the market. Identity Theft and IT Security have become one of the leading problems in the business world, costing consumers and businesses billions of dollars each year. This is the first technology that, once installed, provides end-to-end protection for online banking, brokerage houses, insurance and medical communities. IDS researchers and engineers have spent over 6 years in research and development to perfect this product to finally provide both biometric and the highest level of encryption available all in one plug-n-play solution. IDS is pleased that the HLS division has begun production of this product and will be able to bring it to the market this quarter at prices at or below USB Flash Drives that do not currently offer either biometric or encrypted security.

IDS showcased the product to medical, banking, insurance and brokerage executives at its headquarters in Orlando the last two weeks in a live demo and the unequivocal response from all parties viewing the demonstration was that they would buy the device immediately to use in their various industries and additionally for personal IT Security. HLS will begin taking orders at the ISC West Security Convention in Las Vegas on April 5-7, 2006. HLS has previously projected first-year sales of $75 million for the Biometric Encryption USB Flash Drive. IDS now believes that inline with the overwhelming response by these industry executives that the HLS Division should be able to sell 2,000,000 Units in the 1st year rollout.

IDS Worldwide, Inc. CEO Patrick Downs stated, "IDS is pleased that the leading security publications around the world are already realizing the significance of IDS HLS Division's breakthrough technology of the most sophisticated Biometric Encryption Algorithm in the world." The HLS Division will begin shipping these Biometric USB Flash Drives with HLS proprietary 384-Bit Encryption to the banking, insurance, brokerage, and health industries (for HIPAA Compliance) in the current quarter. This will enable these industries for the first time to not only make their hardware, laptops, desktops and servers hack-proof, but also all data transmitted across the Internet backbone will be protected by IDS HLS Division proprietary 384-Bit Encryption Algorithm, the most advanced encryption available today. Finally, online transactions such as banking and online brokerages will be secure both at the client and banking mainframes and all data transmission in between.

Identity Theft and IT Security breaches have become rampant in the United States. Estimated currently as a $11 billion market and experiencing double-digit growth each of the last three years. IDS HLS Division Biometric USB Flash Drive with 384-Bit Encryption has positioned IDS HLS Division to be a world leader in this explosive market segment. IDS previously reported its special dividend record date will be updated to all shareholders as soon as the related filings are completed. IDS also stated that the dividend payout has not changed from the prior valuation.

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