SOURCE: IDS Worldwide, Inc.

May 05, 2006 10:45 ET

IDS Worldwide, Inc. Receives Offer to Purchase All of HLS Overseas Operations

IDS Receives Offer in Dubai for All of Homeland Security Division (HLS)

ORLANDO, FL -- (MARKET WIRE) -- May 5, 2006 -- IDS Worldwide, Inc. (OTC: IDWD) today previously announced that IDS executives after concluding discussions in Dubai this week would file the final paperwork with the NASD to complete the requirements for the previously announced Special Dividend to IDS Common Stockholders. IDS is confident that shareholders will be extremely rewarded for their patience. IDS has extended the record date to May 5, 2006 to reflect the delay in the filing of the final paperwork. IDS is aware that some short term investors do appreciates this delay but IDS executives felt it was more important to increase the value of the company by concluding more valuable business contracts during this time period. IDS as always is committed to long term shareholder growth and is confident that shareholder who buy and hold in the long term will continue to see the benefit of these actions.

HLS Division exponential growth pace has continued in the latest quarter with new offices opening up in Karachi, the third largest populated city in the world. HLS will be the premier sponsor of the largest security show in Asia conducted on May 17-20. This expo is attended by government, military, industry leaders and oil sheiks throughout the Gulf and Asia Regions. HLS is the only company featured over 100s of exhibitors on the full back page of the expo program handed to all attendees and the only company featured throughout the expo on the speaker platform. HLS Lahore Expo this past weekend attended by over 2000 VIPs produced immediate orders for additional government and private industry leaders and reflects the increased awareness of the HLS brand name in the region.

HLS since the weeks from the ISC West Expo in Las Vegas have received requests for the HLS Biometric Encryption USB Flash from industry leaders, governments and the US Military around the world. HLS believes this breakthrough technology will continue to produce increased revenues and profits for the company. HLS is currently reviewing 300 new applicants for the expanded HLS operations in the region and the new state of the art VOIP and Video Security Monitoring center designed by Arc Solutions with hardware from NEC and Cisco. HLS Division has taken orders for over $500,000 HLS Biometric Flash Drives this week from government, military and industry segments.

In light of the rapid expansion in Dubai, UAE, centrally situated around HLS headquarters and the recent announcement of another $27 Billion in construction in Dubai. HLS with its significant ties to the leadership families is considering the sale of the HLS Division to Dubai entities to facilitate the integration of the construction and fire and safety entities which currently have projects scheduled until 2016. IDS will consider this offer in the best long-term shareholders interests of IDS common stockholders. The Final Sale price of the HLS Division has not yet been determined. Any increase in the previously considered sale amount will be adjusted under the previously announced dividend.

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