Detto.com

 
 
 

Detto Technologies to Acquire WhiteCanyon, Inc.

Adds revenues, earnings, product line and new distribution channel

Bellevue, Washington: October 31, 2005 -

Detto Technologies (OTCBB: DTTO), maker of award winning data transfer and migration software, IntelliMover® and Move2Mac™, today announced that it has signed a Letter-of-Intent to acquire WhiteCanyon, Inc., a Utah corporation. WhiteCanyon develops software security tools such as disk cleaning and file and password protection to help prevent personal identity theft from a PC.

Through the quarter ended September 30, 2005, WhiteCanyon recorded $609,000 of revenues and $256,000 of operating income, which represents an annualized revenue increase in excess of 65% over fiscal 2004.

"When combining the pending acquisition of WhiteCanyon with the current LOI to acquire Channel Access, we will add actual combined sales of $1,584,000 and operating profits of $371,000 through September 30, 2005, resulting in annualized revenues of $2,100,000 and approximately $500,000 in operating income," said Larry Mana'o, CEO and founder of Detto Technologies. "Additionally, we will have expanded both our product line and distribution channels."

The acquisition is consistent with Detto's previously announced commitment to a strategy of growing revenues while increasing profitability and diversifying its channels of distribution and products.

"The acquisition of this rapidly growing company not only makes a significant positive impact to our revenues and profitability, but WhiteCanyon diversifies our product line to put us squarely into the very hot security and personal ID protection market," said Mana'o. "We look forward to rapidly increasing sales of our own products by selling them through WhiteCanyon's strong online presence."

"We are very excited to join forces with Detto," said Stephen Elderkin, CEO and founder of WhiteCanyon, Inc. "Detto has already successfully taken our products into the OEM market with very positive results. Our products complement Detto's PC migration product, IntelliMover, since the best time for drive cleaning or adding identity protection is when one moves to a new PC."

Elderkin, an expert on forensic software, was the chief forensic scientist for AccessData Corp. Over the past six years, he has worked with the Secret Service, CIA, FBI, and U.S. Customs developing security-related technologies.

In March of 2005 he was featured on Inside Edition where he helped expose the dangers of ID theft created when donating or discarding old computers.

Identity Theft

In 2003, the Federal Trade Commission reported that almost 10 million people in the U.S. had their identities stolen, with an estimated cost to the country of $50 billion. In March 2005, Financial Insights, an IDC company, reported that "close to 60% of U.S. consumers sampled in January 2005 expressed concern about identity theft."

A primary source for identity theft is the hard drives of old PCs that have been given away or discarded by their owner. Dataquest estimated that nearly 150 million disk drives were retired in 2002, up from 130 million in 2001. Detto's internal research shows that over 50% of computer users are giving their PCs away, highlighting the need to clean their PCs to protect their personal information from being stolen.

Another source for identity theft is everyday information that resides on most personal computers. Most users are unaware that the passwords they type in when logging into websites, often displayed to them as asterisks, are easily retrieved by malicious software programs such as spyware. These programs can scan a user's hard drive and steal "identity" information, such as usernames, passwords and banking URLs.

WhiteCanyon's products address identity theft and security with the following products:

  • WipeDrive, a hard drive disk cleaner, SRP $39.95. WipeDrive is listed in the top five disk sanitizing tools by the U.S. Department of Defense.
  • SecureClean, for cleaning internet tracks and "shredding files," SRP $39.95.
  • MySecurityVault, a secure encrypted vault for file and password protection, SRP $24.95.
  • MediaWiper, a removable disk cleaner, SRP $39.95.
About Detto Technologies

Detto Technologies, the leading provider of migration technology for consumer and corporations, utilizes its advanced technology to enable the transfer of data, files, preferences and personal settings - the profile or "personality" of a computer user - from an old computer to a new one. IntelliMover®, Detto Technologies' flagship product, provides for the intelligent transfer and integration of settings, preferences and files quickly, simply and cost-effectively. Detto markets its products primarily through OEMs like Dell, HP-Compaq, Gateway and Apple, as well as through most major retail outlets through a third-party vendor. Corporate headquarters is in Bellevue, Washington. More information can be found at www.detto.com

About WhiteCanyon, Inc.

WhiteCanyon, Inc. is a leading provider of security software aimed at protecting individuals and businesses from personal identity theft and trade secret theft since 1998. WhiteCanyon's proven hard drive sanitizing software solution, WipeDrive, listed in the top five disk sanitizing tools by the U.S. Department of Defense, and SecureClean, its individual file scanning and deletion utility, have increasingly become important additions to the software suites of individual users and corporate customers alike. WhiteCanyon's customer base spans individuals, small to medium-size businesses, Fortune 500 companies and government institutions. Its products can be found in leading retailers such as Best Buy, CompUSA, Fry's, Amazon.com and MicroCenter. More information can be found at www.whitecanyon.com

Forward Looking Statements:

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include statements relating to Detto's anticipated financial performance, business prospects, new developments and similar matters, and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. These forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.

Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including changes in business, political, and economic conditions due to the threat of future terrorist activity or otherwise, actions and initiatives by current and potential competitors, and certain other additional factors described in Detto's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on Detto's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release.

Detto is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

Press contact:
Valerie Chan: 206-352-8814

Investor Relations contact:
Bill Glynn: 425-201-5006

Investor Awareness:
Tony Schor: 847-945-2222