SEA GIRT, N.J., Dec. 9, 2004 (PRIMEZONE) -- Digital Descriptor Systems Inc. (Pinksheets:DDSI) has announced the first step of a growth plan which includes potential acquisitions and simultaneous debt restructuring. A new financing agreement was closed effective November 30, 2004, with an institutional investor. The terms of the $3.5 million agreement allow funds to be used for specific acquisitions, as well as restructuring over $500,000 of previously incurred debt under more favorable terms. Any additional cash, net of applied expenses, will be available for operations improvement.
A Memorandum of Understanding to acquire the assets of a supplier of tamper-evident and authentication technologies is in place, and deliberations continue regarding a Definitive Purchase Agreement. "I would like to make very clear that there are no assurances that the transaction will close. Due diligence and negotiations continue that cause uncertainty to remain, however, our research indicates that there are several opportunities that may fit our needs. This activity is an example of our strategy to expand DDSI beyond the public safety markets, where we are already a well-established player, into broader markets," explained Tony Shupin, CEO of DDSI.
The potential for growth through the acquisition is the main driving force to overcome the material obstacles that may still impede this and other opportunities that DDSI is examining. However, the company continues to benefit from aggressive cost controls, ongoing product enhancements, strategic product development and committed investor support.
About Digital Descriptor Systems Inc.
DDSI develops, markets, implements and supports integrated enterprise-wide image application designed especially for criminal justice organizations. With more than 300 customers worldwide, DDSI is an industry-leading imaging solutions provider. The company's customers include states, cities, counties, corrections, justice and public safety agencies. In addition to the current criminal justice marketplace, DDSI is introducing its technology into other commercial markets such as cargo and transportation, access control and the biometric identification industry. Digital Descriptor Systems Inc. is headquartered in Sea Girt, N.J. The company's website address is http://www.ddsi-cpc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release regarding DDSI's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. The company encourages investors to invest wisely. DDSI invites readers to examine its 2003 10K for information regarding the company.
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