Secure Interactive Mobile Tone (SIMtone) Simplifies Delivery of Computing Environments and Content Services to
Devices That Automatically Connect on the Global Network

New York, NY (January 22, 2007) - XDS, Inc., a privately held company targeting the digital virtualization market, today announced the official launch of SIMtone™, a new, patent-pending "digital dial tone" that is pervasively available across broadband networks, and automatically provisions and manages network and session connectivity, security and devices. The SIMtone (Secure Interactive Mobile Tone) allows corporate enterprises, government organizations and service providers to deliver a broad range of applications and services to any non-processing terminal, as well as PCs, thin clients, mobile phones, set-top boxes and PDAs.

SIMtone is the culmination of four years of development, and it allows digital services such as desktop environments, applications and media content to be easily and efficiently provisioned, managed and delivered. Similar to a standard telephone dial tone that enables voice services, SIMtone gives users easy access to digital services by simply connecting, powering on the device of choice, and signing on.

"SIMtone is a paradigm-shifting technology that leverages the ever growing and ubiquitous availability of broadband networks worldwide," explained Mario Dal Canto, Chairman of the Board and CEO of XDS. "As the first enterprise-grade digital dial tone seamlessly available across corporate, Internet and 3/4G broadband networks, SIMtone creates a single, efficient, totally secure and massively scaleable on-demand service delivery platform for corporate users, government agencies and service providers across the globe."

The SIMtone is the first utility service that enables digital content and applications to be delivered:

• Simply, with 100% network-based provisioning and management
• Seamlessly, to any device across any broadband wireless, LAN, Internet, Intranet or other network
• Scalably, with new subscribers and services supported rapidly and at low cost
• Securely, with no exposed ports on the network firewalls

Leveraging the SIMtone, digital services can be easily and instantly delivered to any wireless- or wireline-based broadband connection. Since all data, applications and operating system functionality reside on centralized servers inside a closed firewall, secure, on-demand services and content can be delivered to users in real time without compromising security. "We envision the utility of SIMtone to be equally compelling for both the provider and user because they can easily connect, power-on and deliver in a totally safe and secure environment, anytime, anywhere," said Dal Canto.

Operating in stealth-mode for the past four years, XDS has developed its patent-pending virtualization technology and operating infrastructure with key customers and partners to achieve carrier-grade service scalability and reliability. The company is backed by Kodiak Venture Partners and Motorola Ventures. Anthony Pantaleoni of Counsel at Fulbright & Jaworski, John Abraham, General Partner at Kodiak Venture Partners, and Solomon Trujillo, CEO of Telstra are members of the XDS Board of Directors. XDS was founded by Mario Dal Canto, Gerry Dube and Helmut Salmen, with the support of Fred Adler and Anthony Pantaleoni.

About XDS, Inc.
XDS, Inc. is a privately held company targeting the digital virtualization market. Backed by Kodiak Venture Partners and Motorola Ventures, XDS developed the first "digital dial tone" utility service. Comparable to standard telephone service, its patent-pending, Secure Interactive Mobile Tone (SIMtone™) provides a digital dial tone that is pervasively available across broadband networks, and automatically provisions and manages network and session connectivity, security and devices. The SIMtone can be used to deliver digital services such as desktop environments, applications and media content to all types of non-processing devices, as well as PCs, thin clients, mobile phones, set-top boxes and PDAs. For more information, visit: www.simtone.net.