Digital Descriptor Systems Announces Year End Results

Record revenues increase for cargo security seals company


SEA GIRT, NJ - April 20, 2005 - Digital Descriptor Systems, Inc. (DDSI:PK) - an industry leader in the development of Homeland Security-related products - today announced audited results for the fiscal year ended December 31, 2005. Record revenues grew more than 800%, to $3,335,631, from the 2004 year end report of $412,052. Gross profit rose 506%, to $2,226,727, from $367,270 for fiscal 2004.

In March 2005, DDSI acquired Somerset County, NJ-based CGM Applied Security Technologies, Inc., a leading manufacturer and distributor of various Homeland Security products.

"Our sales and profit numbers continue to improve steadily, from quarter to quarter," says Anthony Shupin, CEO of DDSI. "With just 10 months of financial results since our acquisition of CGM, there's every indication the business strategies we set in motion in March 2005 are extremely effective. We're currently in the midst of a very strong turnaround."

Michael Pellegrino, DDSI's CFO, notes: "We continue to utilize planning and discipline to carefully navigate the company through this early stage of growth. EBITDA (earnings before interest, taxes, depreciation and amortization) losses of $220,166 for the 10 months since the acquisition indicate that we may have come close to breaking even in cash flow had we had the full year."

The company, based in Sea Girt, NJ, develops and markets integrated enterprise-wide image applications specifically designed for criminal justice organizations. Customers include states, cities, counties, corrections, justice, and public safety agencies. Additional information is available online, at www.ddsi-cpc.com.

Its subsidiary, CGM Applied Security Technologies, Inc., based in Somerset, NJ, is a leading manufacturer and distributor of Homeland Security products, including indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers, as well as a number of highly specialized authentication products. Additional information is available online, at www.cgmsecuritysolutions.com.