IDS files changed wording with NASD, but claims USB flash drive is still

The Bard wrote that “What’s in a name? That which we call a rose / By any other word would smell as sweet,” and Altamonte Springs, Florida-based IDS Worldwide (OTC: IDWD) is making more or less the same argument to the NASD: What we say about our product is true, even if the wording we use to describe the product may need some tweaking. The company has filed with the NASD under SEC Rule 10b-17 on 7 March 2006 for the purpose of clearing up wording and certain documents requested to post the filing on the daily record. IDS hopes this will not change the record date for the Special Dividend.

At issue are claims IDS has made for what it calls the “world’s first” Biometric USB Flash Drive with a proprietary 384-Bit encryption. The company will introduce the device at the ISC West Convention in Las Vegas 5-7 April. IDS Homeland Security Division (HLS) says that unlike most competing products, HLS Biometric USB Flash Drive products not only protect the flash drive memory, but is also a plug and play technology which protects any laptop, desktop, or server once installed. In its filing the company is addressing what it calls the misconception in the market regarding USB Biometric Flash Drives. Yes, there are some USB Biometric Flash Drives on the market, but the current models only protect the USB Drive from unauthorized access. IDS proprietary product, on the other hand, protects the USB Flash Drive, makes it impossible to turn the computer on if stolen, and, most importantly, encrypts all data transmissions across the internet backbone. This, the company argues, is the first Biometric USB Flash Drive to achieve all these capabilities.

IDS product is coming out at a good time for such products. Phoenix, Arizona-based research group Semico Research is projecting USB flash drive revenues to be $5.5 billion in 2006, almost doubling to $9.1 billion in 2007. IDS says that in addition to the higher-than-other-products security level, its flash drive will be offered to the market at prices lower than that of competitors.

-read more about IDS USB Flash Drive at company Web site; and see Semico Web site