Wireless Data Solutions, Inc. Announces Letter of Intent to Merge with IDA—Chairman Notes Action Spurs New Growth Opportunities

    /24-7PressRelease/ - ST. CLOUD, MN, October 13, 2005 - Wireless Data Solutions (OTC: WDSO.PK), a Utah corporation headquartered here, and IDA Corporation, a privately-held Fargo, ND, company, have completed their respective due diligence and signed a merger letter of intent.

Pat Makovec, WDS chairman, and Reed Danuser, IDA president, in a joint statement stated that the merged companies are poised to pursue future growth opportunities and expect to secure financing to carry out such plans.

WDS has retained the investment banking firm of JP Carey to act as their Investment Banker for the next round of financing and was introduced by the Crescent Fund, LLC.

"WDS has actively investigated emerging growth technology companies with attractive growth segments in the wireless vehicular communications market, " Makovec said. "Innovations are emerging daily and many need management support and funding in order to operate as separate profit centers. Our research indicates that many innovations emerge daily that fit with our business mission that require both funding and management that we can quickly consolidate into WDS as subsidiaries."

He added, "In our view, consolidated manufacturing and focused sales and marketing efforts will provide WDS with maximum opportunity for customer and channel development."

WDSO has one subsidiary, Distributed Networks, Inc., (dba DINET, Inc.), located in Oceanside, CA. DINET is an acknowledged leader in the development and marketing of "ruggedized" mobile wireless data communications for vehicle fleets in a number of industries, including construction, courier, public safety and service fleets of all type.

DINET was a pioneer in the creation of the first digitalized communications hardware and software for this market. It uses mobile wireless data terminals that supplement voice radio systems.

Danuser, referring to the role IDA will play as part of WDSO, said, "The merger will create opportunities and synergies we have long wanted to pursue." He added,

"IDA designs and manufactures electronic accessories primarily for the communications industry. IDA has been the world leader in producing Base Station Remote Controllers for two-way wireless radio manufacturers and dealers, federal, state and local governments and the business-to-business market.

Danuser will remain as IDA's president and become a member of WDS's board of directors.

"We introduced Global Positioning Satellite (GPS) - based products in 1997 under the TRAKIT label." In addition, IDA has designed software for the creation of a Global Tracking Data Center (GTDC) that enables users to track critical vehicle and equipment status worldwide through IDA's Network Operations Center (NOC). Here is one example: http://www.techtionaryna.com/00/rfid-wdso.swf

Makovec stated that the merger will provide WDS and its shareholders with

"a significant number of benefits." The primary benefit is IDA's "engineering and manufacturers capabilities. Next, GTDC's vehicle tracking center will provide a significant ongoing stream of residual income fees for WDS. Third, IDA has over 3,000 dealers and this network represents a critical new business asset for WDS. "The acquisition will provide WDS with a significant marketing shortcut and avoid the 'entry barrier' that small- and medium-sized companies must face," he added.

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