DDSI Acquires CGM Security Solutions Inc. A Leading Manufacturer Of Specialty Products For Global Supply Chain Security.
For Immediate Release
SEA GIRT, N.J./EWORLDWIRE/March 3, 2005 ---
Digital Descriptor Systems Inc. (Pink Sheets:DDSI) has announced it has acquired substantially all of the assets of CGM Security Solutions Inc., a Florida corporation ("CGM"), for $1.5 million in cash and a 2.86 percent promissory note in the principal amount of $3.5 million, subject to adjustment.
A manufacturer of specialized security products for the packaging, cargo and transportation industries since 1977, the new operation will be called CGM Applied Security Technologies Inc. - a DDSI company.
"CGM's excellent reputation, and extensive experience in Supply Chain security issues, combined with its licensed and patented technologies made it a perfect fit for our growth strategy," said Anthony Shupin, President and CEO of DDSI.
"Our combined talents and technologies provide a powerful solution-set to the needs of domestic and global agencies or companies dealing with the process of accurate identification and asset security. The acquisition also allows us to immediately expand DDSI's product and services offering to our 300 plus client base of law enforcement and criminal justice agencies," Shupin added.
In connection with the acquisition, the company and CGM Sub each entered into an employment agreement with the founder and principal shareholder of CGM Security Solutions Inc., Erik Hoffer, for a three year period and one-year period, respectively. Hoffer will remain as president of the new subsidiary.
"With over 2000 regular clients and worldwide distribution, CGM looks forward to joining with DDSI. Our venture will enable us to further expand CGM's sales coverage and refine our line of products to adapt to a changing world supply chain," Hoffer said.
The corporate headquarters for the combined enterprise will remain in Sea Girt, N.J. CGM will remain in its Somerset corporate plant and office location as well as its main factory in Staten Island, N.Y.
About CGM Applied Security Technologies, Inc.
CGM is a leading manufacturer and distributor of 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. The copmany Web site is www.tamper.com.
About Digital Descriptor Systems, Inc.
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CONTACT:
Anthony Shupin
DDSI
2150 Highway 35
Suite 250
Sea Girt, NJ 08750
PHONE. (732)359-0260
FAX. (732) 359-0265
EMAIL: tony.shupin@ddsi-cpc.com
http://www.ddsi-cpc.com
WEBSITES: http://www.ddsi-cpc.com, http://www.cgm-ast.com, http://www.cgmsecuritysolutions.com
