Secured Digital Applications, Inc. Executes Definitive Agreement with Innospective Sdn Bhd

NEW YORK--(BUSINESS WIRE)--Jan. 25, 2005--Secured Digital Applications, Inc. (OTCBB:SDGL) www.digitalapps.net today announced that it has executed a definitive agreement to acquire a 55% equity interest in Innospective Sdn Bhd, a systems integration firm specializing in the design, development and implementation of wireless applications and electronic solutions. The transaction is scheduled to close on February 23rd, 2005.

"We believe that this acquisition will create an important strategic partnership for Secured Digital," said Chairman and CEO, Patrick Lim. "It continues our program of selective acquisitions that we believe add real value for our shareholders and will further management's strategic vision for the continued expansion of our existing lines of business."

“I continue to be pleased with the results that our strategy of internal growth and targeted acquisition has acheived”

Innospective will manage outstanding contracts awarded to SDA Malaysia. Innospective's current customers include telcos, technology companies, manufacturers, government agencies and systems/solutions developers in Singapore and Malaysia, the Company said. The targeted gross revenue for 2005 is estimated to be $2,000,000, with $800,000 contracted as of today.

The acquisition was funded with $252,631 of internally generated SDGL funds. Innospective's founder, Ivan K.V. Sam, will continue to head the operations of Innospective.

"This acquisition will greatly improve our offerings in Malaysia and Singapore, and help complete some of the current contracts we have regarding SmartHome," said Lim.

Originally formed as a broadband service provider and provider of interactive media, Secured Digital has completed a series of acquisitions during the past 18 months that have permitted the expansion of the company's lines of business into supply chain management, biometric security and information technology systems integration. Secured Digital also holds a majority stake in one of Malaysia's largest resellers of Apple equipment.

"I continue to be pleased with the results that our strategy of internal growth and targeted acquisition has acheived," Lim said. "I believe that our acquisition strategy has been a significant factor in the double-digit rates of revenue growth that the Company has experienced, while maintaining positive earnings per share."

About Innospective

Innospective is a systems integration firm specializing in the design, development and implementation of wireless applications and electronic solutions. Innospective provides its clients a total product development solution covering the following areas from conceptualization to final product: design selection, application development, printed circuit board design, production support, testing and measurement service, regulatory approval consulting, and technical support for final products.

Innospective's business activities include providing turnkey solutions for wireless communications, controls and security, home and office automation, development of personal digital assistants, automatic vehicle locating systems and vehicle immobilizer systems; and supply, installation and commissioning of testing and measurement equipment. In addition, Innospective provides technical design consulting services and technical training services.

About Secured Digital Applications:

Secured Digital Applications, Inc. (formerly known as Digital Broadband Networks, Inc.) and its subsidiaries (the Group) are involved in the development, integration and provision of secured shipping and supply chain management service, sale of biometrics security systems, development of Web based interactive multimedia content. The Group is also involved in systems integration, servicing of computers, the sale of the EyStar SmartHome Console, broadband modems, IP cameras Apple computers and peripherals. For more information, please visit www.digitalapps.net, www.eystar.com and www.gallant-it.com.my.

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