ADS, Inc. Named 2005 Defense Logistics Agency ``Business Alliance Innovative Small Business Performer of the Year''.

VIRGINIA BEACH, Va. -- ADS, Inc. announces it has been named the 2005 Defense Logistics Agency "DLA Business Alliance Innovative Small Business Performer of the Year." Luke Hillier, Chief Executive Officer, ADS Inc. was presented the award and congratulated by Vice Admiral Keith W. Lippert, Director, Defense Logistics Agency and Congresswoman Thelma Drake (R, VA-2nd). The award presentation took place February 14, 2006, in the office of Congresswoman Thelma Drake on Capitol Hill in Washington, D.C.

The Defense Logistics Agency (DLA) presents this award in recognition of ADS, Inc.'s outstanding efforts to partner with DLA and improve the agency's mission--providing supplies and services to America's war fighters. ADS, Inc., in partnership with the Defense Supply Center-Philadelphia (DSCP), provides special operations equipment to the Department of Defense (DoD) and federal agencies through a Special Operational Equipment Contract.

Regarding this award, Congresswoman Thelma Drake said, "ADS should be commended for achieving this DLA award for logistics excellence. As a nation, we are obligated to make our best efforts to ensure our warfighters have the needed equipment to successfully execute their mission. ADS has made a tremendous impact on our soldiers. Through their continuous efforts we can be confident that they are receiving the best equipment for the intended mission. ADS and the DLA are an example of how a public/private partnership can drive innovative excellence to better serve the federal government. I am very proud that they are part of our Virginia Beach community."

To achieve this distinction, ADS successfully maintains a product supply of approximately 60,000 items. The company has completed 28,000 delivery orders totaling more than $370 million and has maintained a 99% order fill-rate since January 2000. ADS provides innovative logistical support that includes an extensive on-line ordering system, face-to-face customer service, superior product quality, extensive technical expertise, and 24/7 customer support.

According to DLA Director, Vice Admiral Lippert, "DLA does not manufacture supplies. We depend on our alliances with suppliers and vendors. We're only successful when we deliver items our nation needs. And we can only do that with successful business alliances."

ADS uses its product expertise and cutting edge distribution operations to deliver needed gear to the Special Forces, Army, Navy, Air Force, Marine Corps and federal civilian agencies significantly faster than the traditional DoD procurement process. The company ensures that each item provided is the correct piece of equipment for the intended job and is backed by superior customer support.

Luke Hillier said, "ADS is proud of this DLA Innovative Business award. It is a significant achievement for us and a welcome public acknowledgment of our hard work and dedication towards serving the Department of Defense and other federal agencies. Most importantly, we are proud to serve the men and women who are dedicated to fighting for our country and winning the war on terror."

In November 2005, Inc. Magazine named ADS, Inc. the fourth fastest growing company in the United States. In August 2005, ADS was awarded a 2-year, $130 million Special Operational Equipment contract with the option for five additional one-year extensions. If all contract options are exercised the total contract value could exceed $500 million. The company also won a DLA Electronic Mall (EMall) contract in 2005 offering over 2,000 product lines to qualified military customers. ADS was also awarded the Hazardous Incident Response Equipment (H.I.R.E.) Contract, a Multi-State Contract initiated by the State of New York, to supply equipment in support of Homeland Security and Domestic Preparedness needs.

About ADS, Inc.

ADS (www.ads-primevendor.com) is intensely focused on providing timely and cost effective special operational products and logistics solutions our clients need to increase their operational effectiveness and complete their missions - at home or in theater. ADS has developed procedures that shorten the "logistics pipeline" to provide rapid response and the best possible pricing to our customers worldwide. ADS is a Worldwide DLA Prime Vendor, a General Services Administration (GSA) contract holder and a DoD EMall contract holder. The company holds GSA contracts with numerous tactical and special operational equipment manufacturers. The ADS business development team consists primarily of retired military and law enforcement personnel who have served in special operations, diving, reconnaissance, and the security community.