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Former Florida Lt. Governer, Jennifer Carroll, Named President & CEO of GDSI Division North American Custom Specialty Vehicles, Inc.

Stephen L. Norris, Co-Founder of The Carlyle Group, Joins GDSI Board and Becomes Chairman and CEO of GDSI International

Richard Feldman, Firearms Industry Expert, Joins GDSI Advisory Board

H. “Skip” Lee Named Vice President of Finance of GDSI Division, North American Custom Specialty Vehicles

 GDSI Acquires Custom Command & Control Vehicle Builder, NACS Vehicles of Melbourne, FL

Former Florida Lt. Gov. Jennifer Carroll Joins Transition Management Team

International Financing Expert Edwin J. Wang Joins GDSI’s Growing Team of Senior Advisers

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Shipment of High-End, Mobile Command and Control Vehicle to Middle East  - Value in Excess of $1 million

GDSI and NEAH Global Energy Solutions Sign Term Sheet to Provide $5 Million Investment in GDSI

GDSI CEO Richard Sullivan Issues Public Open Letter Describing GDSI’s U. S.-Centric Strategic Plan For Technology-Related, Knowledge-Based Jobs, Innovation and Security

The United States has always been a world leader in harnessing the power of advanced technology and forward-leaning knowledge to address economic and security-related issues.  We need to continue that tradition by making the necessary investments and pursuing smart strategies – while leveraging effective partnerships between the private and public sectors – if we’re going to meet the evolving challenges of the 21st century.

The future will belong to those who embrace the changing reality of the new, fast-paced, high-tech, cyber-based, networked, globalized marketplace.  The rules of engagement have changed.  And this is especially true for the approximately 25 million small businesses in this country.  

Let’s remember that the real engine of economic growth, job creation and technological innovation has been the small business community.  The bedrock of our free enterprise system, in fact, has been this entrepreneurial spirit, coupled with the desire of millions of small investors to participate in a dynamic, innovative economy while reaping a fair return on their investments.  

Global Digital Solutions, Inc. understands these factors and we have begun implementing our strategy for profitable growth with these considerations in mind.

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Targets Considered for acquisition will meet the following preliminary criteria:

Acquisition Program Will Draw On Experience Of Past Successes

Global Digital Solutions is refocusing its business strategy on positioning itself as a leader in providing various military-related products and services that will be coming on-line in the coming months, including a revolutionary suite of technology-enhanced services that offer personalized, digital small arms safety and security solutions in commercial and military-related markets.

Richard J. Sullivan, GDSI’s Chairman and CEO, offered several reasons for optimism regarding the proposed acquisitions discussed in the Company’s recent Form 8-K filing and GDSI’s overall strategy for profitable growth going forward:

“The GDSI team is extremely excited and confident about all three of these proposed acquisitions. There are powerful synergies between Freedom and the two other companies that will fuel our future growth along with the transformation of the cyber arms industry.  Cyber-based technologies, coupled with enhanced digital product development and distribution, will be key factors in achieving results that could match – and probably even exceed – what we were able to produce at Digital Angel Corp and Applied Digital Solutions (“Applied”).  At Applied, we saw our market capitalization reach $2.5 billion, roughly five times revenue and nearly 25 times EBITDA.

“Results like these truly represent the baseline of our expectations going forward.   As discussed previously, we plan to follow a similar acquisition strategy to the one we successfully pursued at Applied.  Under my leadership at Applied, the GDSI team successfully executed a private-to-public company roll-up totaling some 42 acquisitions and growing annual revenue from $1 million to $350 million over five years.  

“This model, which takes advantage of market trends, technological advances and industry consolidations to fuel profitable growth, presents a value proposition that is perfectly suited to the military armament industry, an industry that is heavily fragmented and evolving rapidly toward a RFID/WiFi-enabled technology platform.  In this dynamic environment, we see enormous opportunity to consolidate this market with a program of targeted acquisitions, including the proposed Freedom transaction.  Technological convergence is the future in the cyber/smart arms arena and we’re eager to leverage our proven history of success by helping Freedom and others navigate the transition from analog to digital.  

“Our team plans to drive unprecedented consolidation and convergence in the cyber arms arena at least in part through the acquisition strategy outlined in our Form 8-K filing and elsewhere.  We’ll also do this by leveraging technologies like GDSI Gatekeeper, which we announced on January 23, 2014. Gatekeeper represents a revolutionary suite of technology-enhanced services that offer personalized, digital small arms safety and security solutions in commercial and military-related markets.

“The bottom line is:  Our excitement and confidence derive from the fact that we’ve done this before and we see enormous potential that we’ll be able to do it again.”    

Mr. Sullivan was the founder and former Chairman and Chief Executive officer of Applied Digital (NASDAQ-NCM: DIGA). Applied Digital was formed in 1993 and went public via reverse merger in 1994. Applied spawned two more successful public companies – Digital Angel (Amex: DIGA) and VeriChip (NASDAQ: CHIP). Prior to launching Applied Digital, Mr. Sullivan successful employed roll-up strategies with other potentially high growth companies, including his work as a founder of Manufacturing Data Systems, Inc. (MDSI).  MDSI was sold to Schlumberger in 1978 for the highest price per share paid for an OTC stock - $76 per share.  

Mr. Sullivan’s approach to each new company was to take advantage of certain market trends, technological advances and industry consolidations to build, through organic growth and strategic acquisition, a company with proven products and solid earnings. The new company would be the cornerstone of an entity that could potentially top $500 million in sales and would be built from the acquisition of companies with strong earnings and synergy with the company’s business and technology plans.  In the case of Applied Digital, the company’s chosen niche was wireless technology. The first acquisition was of a company involved in wireless data collection applications for manufacturing. This initiative initially made use of money raised through private investment. To take the company to the next level and conduct the wide-ranging acquisition program he envisioned, Mr. Sullivan decided to utilize reverse merger as the means to access public capital.

The proposed GDSI growth and acquisition strategy is consistent with that of Applied Digital in many ways. GDSI can be successfully positioned to take advantage of the favorable market conditions for consolidation in this space.  The efficient use of pubic capital, post-private placement, as was the case in the successful Applied Digital experience, will be employed. Through the effective use of “Best Practices” and technology-driven collaboration the Company has the ability to efficiently consolidate profitable military armaments manufacturers that, in Management’s opinion, will add earnings, market share and intellectual property assets to the combined entity.  GDSI’s management team has the ability to proficiently evaluate the success probability of each acquisition by benchmarking targets against GDSI’s revenue and quality control-driven methods.  

GDSI Growth Plan: Market  Synergies, Financial Diversity