SOURCE: IDS Worldwide, Inc.

October 17, 2005 09:37 ET

IDS Worldwide, Inc. Updates Special Dividend Payment Decision

IDS Worldwide, Inc. Updating Special Common Stock Dividend and Ex-Dividend Date

ORLANDO, FL -- (MARKET WIRE) -- October 17, 2005 -- IDS Worldwide, Inc. (OTC: IDWS) today updated the Company's previous Press Release that it has concluded the negotiations for the buyout of the Company's Homeland Security Division (HLS) with the closing deal determined to be now valued at $41,500,000 before certain closing costs.

IDS also previously announced that the Board of Directors has decided to use 100% of the proceeds from the buyout for a one-time special dividend paid to common stockholders of IDS Worldwide, Inc. stock after various closing costs. IDS has been advised by Counsel that audits for the breakout of the Homeland Security Division (HLS) must be completed to determine the exact dividend after closing costs and corporate tax considerations for the one-time special dividend payment to the common stockholders of IDS Worldwide, Inc. These steps are required since IDS Worldwide, Inc., under the negotiated buyout terms, is not selling the entire HLS division and the IDS will maintain ownership in the new entity.

IDS auditors of its overseas HLS Division operations are scheduled to be completed this week and then will be combined and audited by US Tax Counsel. US Tax Counsel will take approximately 10 days for this review. Certain final closing agreements have now upgraded the range of the one-time special dividend value to the shareholders to $.87 and $1.01 per common stock share of IDS Worldwide, Inc.

Finally, IDS counsel has informed the Company that under Rule 10b-17 there is a 10-day window prior to "any dividend record date." Therefore, any investors buying the stock up to the ex-dividend date will be eligible to receive the full value of the one-time special dividend. Due to tax considerations faced both by the Company and individual common shareholders, IDS Board of directors has decided to solicit shareholder input thru a shareholder vote subsequent to the completed breakout audit of the Homeland Security Division (HLS) regarding the timing of the payment of the special one-time dividend payout and the structure of said payout. All shareholders will receive the proper documents via mail from IDS Worldwide, Inc. though the Company's Transfer Agent. IDS feels it is more equitable to allow all shareholders to determine and assess the tax implications and timing of the one-time special dividend that will affect each shareholder.

IDS is not issuing any additional shares of IDS Common Stock in connection to this transaction so there will be no dilution to common stock holders of IDS Worldwide, Inc. IDS has not concluded the negotiations for licensing the technology of the Company's various Biometric Technologies and this will not delay the closing but will conclude as a separate transaction.

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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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