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Produce Safety &Amp; Security International, Inc. Signs Definitive Agreement to Acquire Innovative Food Systems, Inc.

Posted on: Tuesday, 6 June 2006, 06:00 CDT

PRODUCE SAFETY AND SECURITY INTERNATIONAL, INC. (PINKSHEETS: PDSC) ("PDSC"), an Ozone and chemical sanitation disinfectant process supplier to the food and medical industries, announces the signing of a definitive agreement to acquire INNOVATIVE FOOD SYSTEMS, INC. (IFS) to become a wholly owned subsidiary that will provide a complete Ozone Food Safety Process that has been proven effective against the food-borne virus E.coli H157, Salmonella and Listeria outbreaks for the Retail Food Service Industry. IFS has developed systems for preserving and sanitizing perishable products for food various sectors, including: Retail Grocery (Produce, Seafood, Deli, Meat, and Poultry Departments), Restaurants, Institutions, and Schools.

Clarence W. Karney, CEO of Produce Safety & Security International, Inc., stated, "The principal management of IFS brings over 45 years of diverse food experience to our Company in addition to the Ozone Processes for the extension of Shelf-Life and the prevention of Food-Borne Illness Outbreaks." Mr. Karney continues by stating, "IFS has developed an extraordinary solution, the Aqueous-O3 System, for two of the most serious problems within the perishable food industry: shelf life extension and the reduction of pathogens such as Listeria, Salmonella, and E-coli 0157 H: 07."

Applications for the Aqueous-O3 System include:

 --  Preserving/Sanitizing Unit for perishable products --  Ice Machine Unit --  Produce or Seafood Misting Unit --  Drop-down Rinsing/Sanitizing      

For more than 100 years, the water treatment industry has been utilizing Ozone in treatment plants and the bottled water industry. The FDA approved the use of Ozone as an anti-microbial agent for food treatment, storage, and processing on June 26, 2001.

Five years of research and development and three years of third-party validation have confirmed IFS' ability to extend the shelf-life of perishable food products by as much as 14 days using the Aqueous-O3 System. In addition, the test protocol achieved up to a 99.9 percent reduction of microorganisms including pathogens such as Salmonella, Listeria, and E.coli 0157 H: 07. Other industry tests have shown Ozone to be equally effective on mold, yeast, viruses, spores, as well as eliminating pesticides and insecticides without leaving a residue. Shelf-life extension of perishable foods is extremely important, because of its direct effect on the bottom line for companies involved in the perishable food industry. The Aqueous-O3 System offers an inexpensive, and easy to implement technology that can begin paying for itself upon installation by reducing shrinkage up to 50 percent.

IFS's Technology Improves Grocery Store Competitiveness

Nutrition experts have placed increased emphasis on the consumption of fresh fruits and vegetables, seafood, and organic foodstuffs. Consumers have responded to this advice, forcing grocers to expand produce and seafood offerings. To meet the growing demand, grocers have allocated more floor space to produce and seafood sales and increased imports of both produce and seafood. IFS technology helps grocers protect and leverage their investments in these areas by increasing the shelf-life and prolonging the freshness of seafood and produce without compromising organic labeling requirements. As a result, grocers are able to provide greater diversity of produce and seafood, maintain its quality, and reduce the risk associated with spoilage in these high-risk areas.

IFS Technology Pays for Itself Quickly

The return on investment for customers will be generated from shelf-life extension (reducing shrinkage up to 50%), customer satisfaction (safer products and eliminating odors), and reduced liability (recalls and lawsuits associated with food-borne illnesses).

At this time our research indicates that there are only two Ozone companies that are working exclusively in the food preserving/sanitizing markets. One company is working with a broad spectrum of applications and the other is only working with air treatments. Right now neither company offers anything like the Aqueous-O3 systems. The other Ozone companies are primarily water treatment companies that may have one or two items that can be used in food applications.

The greatest competition right now comes from the chemical industry. For years, chemicals such as chlorine, chlorine dioxide and bromine have been accepted as the norm for washing and sanitizing perishable foods. Chlorine is the chemical of choice, yet the EPA has confirmed that using chlorine as a bacteria control agent it causes the formation of Trihalomethanes (THM). THMs are created when high concentrations of chlorine are mixed with organics that produce an extremely carcinogenic by-product to humans that cannot be destroyed.

About Produce Safety & Security International, Inc.

PDSC has developed and patented products for extending the shelf life of perishables. The EPA-registered products sanitize and disinfect against food-borne illness pathogens and disease-causing bacteria. PDSC provides a range of options for retail stores, restaurants, cruise ship lines, disaster cleanups and municipal programs. Furthermore, the process incorporates a complete audit trail, an essential component for complying with government regulations in the USA, Canada and Mexico.

PDSC's state-of-the-art Ozone process has been shown to extend the shelf life and remove food-borne illness bacteria. This process will provide retail produce departments reduced shrinkage, increase the bottom line and provide a fresher product for the consumer. The customer will be assured of a safe food product, by use of this process, which may be used on organic produce to remove the pathogens. This process uses no chemicals thus meeting the requirements of organic certification.

For further product information, joint venture opportunities, distributorship program information, or program applications, please go to PDSC's website www.foodsafeint.com.

Safe Harbor

Forward-looking statements made in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made by Produce Safety & Security International, Inc. are not a guarantee of future performance. This news release includes forward-looking statements, including with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of Produce Safety & Security International, Inc. and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition.

 For Investor Relations information, Contact: Harrison, Elliott, & Brown LLC Henry Harrison (407) 862-5151 hharrison@insidewallstreet.com

SOURCE: Produce Safety & Security International, Inc.

Source: MARKET WIRE

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