CDSI Reports Third Quarter 2000 Results.

Business Editors

MIAMI--(BUSINESS WIRE)--Nov. 14, 2000

CDSI Holdings Inc. (OTC: CDSI) today announced financial results for the three and nine months ended September 30, 2000.

Third quarter 2000 revenues were $78,919, compared to revenues of $127,207 in the third quarter of 1999. Net loss for the three months ended September 30, 2000 was $10,982, or less than $0.01 per share, compared to a net loss of $217,664, or $0.07 per share, for the three months ended September 30, 1999.

Revenues for the nine months ended September 30, 2000 were $255,949 compared to revenues of $332,583 in the nine months ended September 30, 1999. Net loss for the nine months ended September 30, 2000 was $182,070, or $0.06 per share, compared to a net loss of $2,163,346 or $0.69 per share, for the nine months ended September 30, 1999.

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         Nine Months
                              September 30,           September 30,

                            2000        1999        2000        1999

Revenues                 $  78,919   $ 127,207   $ 255,949   $ 332,583

Costs and expenses:
  Costs of revenues         69,331      98,636     219,814     270,826
  Research and development       -      35,550      12,616     104,003
  Sales and marketing            -     141,592      22,580     384,402
  Amortization of
   intangible assets             -       1,081      45,491     398,060
  General and
   administrative           22,238      74,977     144,083     877,229
                         ---------   ---------   ---------   ---------
                            91,569     351,836     444,584   2,034,520
                         ---------   ---------   ---------   ---------

Operating loss             (12,650)   (224,629)   (188,635) (1,701,937)

Other income (expense):
  Interest and other
   income                    1,818       6,965       7,010      40,515
  Interest expense            (150)          -        (445)          -
  Equity in loss of
   ThinkDirect-Marketing.com     -           -           -    (501,924)
                         ---------   ---------   ---------   ---------
                             1,668       6,965       6,565    (461,409)
                         ---------   ---------   ---------   ---------

Net loss                 $ (10,982)  $(217,664)  $(182,070)$(2,163,346)
                         =========   =========   ========= ===========

Net loss per share
 (basic and diluted)     $   (0.00)  $   (0.07)  $   (0.06)  $   (0.69)
                         =========   =========   =========   =========

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