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Stockprowler’s pick this week...

Digital Descriptor Systems, Inc. (OTC BB: DDSI)
Corporate Web Site: http://www.ddsi-cpc.com/
Shares Outstanding: 45.5 million Market Capitalization: $4.3 million
Closing Price Friday 10/19/01 : 9.5 cents

Digital Descriptor Systems, Inc (OTC BB: DDSI) develops, assembles and markets computer installations, consisting of hardware and software, which capture video and scanned images, digitize the image, link the digitized images to text and store the image and text on a computer database which allows for transmitting the image and text by computer or over telephone transmission lines to remote locations. The company is currently marketing its imaging technology solutions to customers in the law enforcement/ criminal justice field with a suite of imaging products that make their job of solving crimes easier. The principal product of DDSI is the Compu-Capture^® Law Enforcement Program, which is marketed to law enforcement agencies and jail facilities. The program captures a video or scanned image (mug shot) of a subject that is stored by computer application along with the booking record, physical description and other pertinent information about the subject. Compu-Capture^® was introduced into the market in 1989. Since that time, DDSI has installed approximately 350 systems in 46 states in the United States , Europe , South America , Canada , Mexico and Bahamas .

DDSI is also preparing to enter the explosive bio-metric industry with the launch of two new products; FMS (Fingerprint Matching System) and Compu-Scan 3000 the worlds first “contact-less” fingerprint capture device. FMS, Is the world's most advanced and first hardware independent matching software available for government agencies and is fully scaleable making it cost effective for smaller agencies while providing record-shattering speeds for very large-scale agencies. Compu-Scan is a revolutionary contact-less "livescan" device. Unlike traditional ink and roll and even today's automated fingerprint devices, Compu-Scan / 3000 requires no contact with the finger. This 10-print booking system eliminates all the issues with distortion, smearing, and dry or oily skin. This contactless method of capture eliminates replacing scratched platens or messy ink-pads, and abolishes the need for extensive training.

The company is currently working with Titan Systems Corp. (NYSE: TTN) to finish the FBI certification process for the patent pending Compu-Scan / 3000 fingerprinting device. Titan “has been in constant contact with the FBI certification team.” Digital Descriptor CEO Garrett Cohn stated, “They have issued us several reports that show they are confident we will complete this final stage of certification soon.” Cohn added that Titan will also provide additional support, so that following FBI certification, Titan’s “DBA Systems Division can begin production of the Compu-Scan device.” The product recently has received high interest levels when presented at industry trade shows. In fact, DDSI has received its first purchase order for its revolutionary Compu-Scan / 3000. This initial order is scheduled to be delivered in early 2002. Digital Descriptor CEO Garret Cohn commented, “This sale is the direct result of our pre-sales program prior to FBI Certification. I am very pleased that we have been able to secure an order so early in our planned sales program,” he said. “It indicates that the criminal justice market recognizes and is accepting our non-contact device and its obvious superiority over other devices.”

On October 11, 2001 Digital Descriptor Systems announced the first sale/ installation schedule of its Fingerprint Matching System (FMS) for Bucks County , Pa. and the Bucks County Correctional Facility in Doylestown , Pa. The FMS ID solution that will positively identify arrestees and prisoners, both as they are booked and enter the facility and also upon their exit. Harris Gubernick, Deputy Director of Bucks County Correctional facility commented, “We selected DDSI for this segment of our countywide ID system as it will be integrated with our current imaging and booking system. It will be networked throughout the county at 18 booking locations, when completed, thus allowing immediate fingerprint identification of all arrested individuals.”

Digital Descriptor’s FMS is the only fully scalable fingerprint identification system in the world designed to take full advantage of the Windows(r) NT/2000 environment. FMS can handle as few as 50 fingerprints to many millions in its database. Cohn added, “DDSI can supply capturing, storing, retrieval and matching of fingerprints across a broad range of applications from jail visitor entry and release, logical computer access, voter and club registration, verification for financial transactions, border control and rapid transit systems and many other uses. FMS has the abilities to support county, state and countrywide identification solutions such as voter registration.”

The company’s FMS (Fingerprint Matching System) has specific application to controlling access, identifying and verifying individuals and other ID or biometric applications. Digital Descriptor CEO Garrett Cohn recently stated, “We have already, since Tuesday (9-11), been contacted by several Federal agencies to begin discussions about our solutions. I must say this horrific situation points out the need for broader use of identification technology such as our new FMS software and Compu-Scan product line.”

It is our opinion that the present world situation calls for the U.S. government to take extraordinary measures to safeguard its people from threats both from without and within. If that means giving up some of our freedom, so be it. A recent Senate bill sponsored by U.S. Senators Kit Bond of Missouri and Olympia Snowe of Maine, and by Senator Kent Conrad of North Dakota calls for would-be visitors to the U.S. submit to tough background screening and a biometric fingerprint scan. The creation of these smart card visas for immigrants and visitors would make it easier for authorities to detect and deport visa violators. The biometric would be stored in a tamperproof smart card visa, as well as a U.S. government database, allowing periodic checks against immigration. intelligence and law enforcement records, Bond says. "We'll know who that person is when they come in the country and when their visa expires," Bond stated. Stockprowler.com believes that such an ID card should be required of not only visitors and immigrants to this country but of all of its citizens. Readers are encouraged to visit the following New York Post link to fully appreciate how chilling and real the threat to America is becoming both from without and from within… and why we need to require federal ID/biometric cards like those being proposed by Digital Descriptor Systems, Inc. http://www.nypost.com/news/nationalnews/31829.htm

Industry experts say that biometric technology is headed for an explosion in the very near future, with physical characteristics such as a fingerprint becoming the chief source for access to computers and cell phones in the next couple of years, with access to offices, homes and cars in the next three to 10 years. International Biometrics Group, a biometrics consulting firm, says it estimates a billion-dollar market by 2003. Solomon Smith Barney estimates the market for law enforcement systems for automated fingerprint identification alone is expected to reach $300 million by 2002.

DDSI closed Friday at 9.5 cents on volume of 638,200 shares. Given the current world situation, the urgency of DDSI’s products, and the partnering with Titan Systems (NYSE: TTN)… Stockprowler.com is of the opinion that a stock price of 10 cents a share is going to look very cheap… very soon. Stockprowler Readers are encouraged to visit the DDSI company Web site for further information. http://www.ddsi-cpc.com/.

Stockprowler.com did not receive compensation of any kind from the company or third parties for writing this report. Readers are urged to read the company SEC filings and do their own due diligence before investing in this or any other stock.

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