CDSI Reports 2000 Second Quarter Results.

Business Editors

MIAMI, FL--(BUSINESS WIRE)--August 14, 2000

CDSI Holdings Inc. (OTC: CDSI) today reported financial results for the 2000 second quarter ended June 30, 2000.

Second quarter 2000 revenues were $105,047 compared to revenues of $94,288 in the 1999 quarter. In the 2000 quarter, the net loss was $70,616, or $0.02 per common share, compared to a net loss of $1,023,107 or $0.33 per common share, in the 1999 period.

For the six months ended June 30, 2000, revenues were $177,030, compared to $205,376 for the first six months of 1999. The Company recorded a net loss of $171,088, or $0.05 per common share, for the 2000 six-month period, compared to a net loss of $1,945,682, or $0.62 per common share, for the 1999 six-month period.

CDSI, a Delaware corporation, holds a minority interest in ThinkDirectMarketing.com, Inc., an internet application service provider that develops and distributes direct marketing and customer relationship products and services. CDSI intends to explore investments in other Internet-related businesses as well as other business opportunities. As CDSI has only limited cash resources, CDSI's ability to complete any investment opportunities it may identify will depend on its ability to raise additional financing, as to which there can be no assurance.

CDSI Holdings Inc. and subsidiaries
Unaudited Condensed Consolidated Statements of Operations

                    Three Months Ended          Six Months Ended
                          June 30,                   June 30,
                    2000           1999        2000          1999

Revenues       $   105,047    $    94,288  $   177,030    $   205,376

Costs and
 expenses:
Costs of
 revenues           94,573         88,867      150,483        172,190
Research
 and
 development          --           30,010       12,616         68,453
Sales and
 marketing           6,458        141,462       22,580        242,810
Amortization
 of intangible
 assets             42,528        373,617       45,491        396,979
General and
 administrative     34,060        220,643      121,845        802,252
                   177,619        854,599      353,015      1,682,684

Operating loss     (72,572)      (760,311)    (175,985)    (1,477,308)

Other income
 (expense):
Interest and
 other income        2,130         12,682        5,192         33,550
Interest
 expense              (174)            --         (295)            --
Equity in
 loss of
 ThinkDirectMarketing.com  --    (275,478)          --       (501,924)
                     1,956       (262,796)       4,897       (468,374)

Net loss       $   (70,616)   $(1,023,107) $  (171,088)   $(1,945,682)

Net loss
 per share
 (basic
 and diluted)  $     (0.02)   $     (0.33) $     (0.05)   $     (0.62)

Shares used
 in computing
 net loss
 per share       3,120,000      3,120,000    3,120,000      3,120,000