Published: August 05, 2011
IDO Announces Board Approval for a Reverse Stock Split
NEW YORK - (BUSINESS WIRE) - IDO Security Inc. (OTCBB: IDOI) developer of the innovative MagShoe
shoe scanning device (SSD), announced today that the Board of Directors
has unanimously adopted a resolution to authorize a reverse stock split,
reducing the authorized shares, the number of issued and outstanding
shares of the Company's common stock and preferred stock.
The primary purposes of the reverse stock split are to increase the
share price of the common stock to help maintain the interest of the
markets and to reduce the outstanding shares of common stock to a level
more consistent with other public companies with a similar market
capitalization. The Board of Directors has determined that it would be
in the Company's best interest in the near future to implement a reverse
stock split up to a 1 for 5,000 basis.
Michael Goldberg, President of IDO Security said, "While the reverse
stock split does not change the intrinsic value of the Company, the
split should broaden the Company's appeal to investors. It is also
necessary that we implement a reverse stock split in order to be
responsive to the requirements being instituted by various clearing
firms in hopes to provide our shareholders with the opportunity to meet
the new internal rules being instituted by many clearing firms."
Following Board's decision on the ratio of the reverse stock split,
implementation and the effectiveness of the reverse stock split, all
issued and outstanding shares of the Company's common stock, as well as
common stock underlying stock options, warrants, preferred stock and as
well as the authorized shares will be appropriately adjusted. There will
be no cash or fractional shares issued as part of the Company's reverse
stock split, therefore each stockholder's new share count will be
rounded up to the nearest whole share if the number of shares is not
evenly divisible by the ratio of the reverse stock split. The reverse
stock split will not affect any stockholder's ownership percentage of
the Company's common stock, except to the limited extent that the
reverse stock split would result in any fractional shares being rounded
up.
Further details as to the record date and time of the reverse stock
split and the exact ratio of the reverse split will be forthcoming.
About IDO Security, Inc.
Headquartered in New York with a subsidiary in Israel, IDO Security
designs, develops and markets the patented MagShoe shoe scanning device
(SSD). MagShoe fills a critical void in today's detectors by extending
screening to the lower body and feet. MagShoe 's "shoes-on" design
maximizes security, thoroughness and accuracy while eliminating the need
to remove shoes for increased convenience and safety. The MagShoe is
neither invasive nor harmful to the body as some of the other screening
devices currently used in the marketplace. Ideal for security and loss
prevention at virtually any facility, MagShoe is currently in use at
international airports, cruise lines, government agencies and more.
For more information on the Company, please visit: http://www.idosecurityinc.com
Forward-Looking Statements:
This press release contains forward-looking statements that involve
substantial uncertainties and risks. These forward-looking statements
are based upon our current expectations, estimates and projections about
our business and our industry, and that reflect our beliefs and
assumptions based upon information available to us at the date of this
release. We caution readers that forward-looking statements are
predictions based upon our current expectations about future events.
These forward looking statements are not guarantees of future
performance and are subject to risks, uncertainties and assumptions that
are difficult to predict. Our actual results, performance or
achievements could differ materially from those expressed as a result of
a number of factors, including but not limited to, the effect or success
of any reverse stock split that the Company may implement, the
sufficiency of existing capital resources, uncertainties related to the
development of IDO's business plan, the ability to secure additional
sources of financing, general economic conditions, the availability of
competing products and the ultimate market acceptance of our products,
changes in technology, legislative or regulatory changes that affect us
and the risks and uncertainties discussed under the heading "RISK
FACTORS" in Item 1A of IDO's Annual Report on Form 10-K for the year
ended December 31, 2010, and in our other filings with the Securities
and Exchange Commission at www.sec.gov.
We undertake no obligation to revise or update any forward-looking
statement for any reason.

IDO Security Inc.
Michael Goldberg, 646-214-1234
mg@idosecurityinc.com
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