CDSI Reports 2000 First Quarter Results.

Business Editors

MIAMI--(BUSINESS WIRE)--May 15, 2000

CDSI Holdings Inc. (OTC:CDSI) today reported financial results for the 2000 first quarter ended March 31, 2000.

First quarter 2000 revenues were $71,983 compared to revenues of $111,088 in the 1999 quarter. In the 2000 quarter, the net loss was $100,472, or $0.03 per common share, compared to a net loss of $922,575, or $0.30 per common share, in the 1999 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                                                     March 31,                                                  2000          1999  Revenues                                    $    71,983   $   111,088  Costs and expenses:   Costs of revenues                              55,910        83,323   Research and development                       12,616        38,443   Sales and marketing                            16,122       101,348   Amortization of intangible assets               2,963        26,638   General and administrative                     87,785       578,333                                             -----------   -----------                                                 175,396       828,085                                             -----------   -----------  Operating loss                                 (103,413)     (716,997)  Other income (expense):   Interest and other income                       3,062        20,868   Interest expense                                 (121)   Equity in loss of    ThinkDirectMarketing.com                          --      (226,446)                                             -----------   -----------                                                   2,941      (205,578)                                             -----------   -----------  Net loss                                    $  (100,472)  $  (922,575)                                             ===========   ===========  Net loss per share (basic and diluted)      $     (0.03)  $     (0.30)                                             ===========   ===========  Shares used in computing net loss per share   3,120,000     3,120,000                                             ===========   ===========