SOURCE: IDS Worldwide, Inc.

March 20, 2006 13:27 ET

IDS Worldwide, Inc. HLS Division Signs $50 Million Distribution Agreement

HLS Signs Distribution Agreement for Biometric Encryption USB Flash Drive

ORLANDO, FL -- (MARKET WIRE) -- March 20, 2006 -- IDS Worldwide, Inc. (OTC: IDWD) today announced that IDS Homeland Security Divisions (HLS) leading biometric encryption technology, the most advanced IT Security Product available in the world combining Biometric Technology and IDS HLS Division proprietary 384-Bit Encryption Algorithm, has signed a $50 million Distributor Agreement for North America for the Healthcare Industry to meet HIPAA requirements with Strategic Acquisitions LLC. The first 50,000 units are scheduled for delivery before May 15, 2006, and subsequent deliveries for an additional 450,000 units throughout the coming year. 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 This security and portability cannot be accomplished with outdated security measures such as computer passwords and outdated file protection systems.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 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 will showcase the product to banking and brokerages executives at its headquarters in Orlando on March 20, 2006, and 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 will adjust projected sales in light of this initial agreement for the healthcare industry in North America and after the ICS West convention in Las Vegas, where HLS will sign additional distribution agreements for the banking, insurance and brokerage industry.

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 prior the valuation.

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