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[avandalay05]

Yield - SDGL...
you wanted me to keep you informed re: SDGL...looks like made an agreement with Laurus for conversion. Price was flat today... mostly good news but now has a large Laurus common overhang...what do you think?>
Art

Secured Digital Retires Debt and Preferred Stock to Improve Net Earnings to Shareholders
Wednesday August 3, 12:17 pm ET


NEW YORK--(BUSINESS WIRE)--Aug. 3, 2005--Secured Digital Applications, Inc. (OTCBB:SDGL - News) today announced that it had retired $6.34 million in convertible debt and preferred stock reducing the company's annual debt service costs and dividend payments by approximately $550,000.
The company reported that it had reached an agreement with an institutional investor in which the investor agreed to convert an existing note and preferred stock into 9.756 million shares of common stock and $238,000 in cash. In an agreement reached with Laurus Master Fund, Ltd., the holder of the notes and preferred stock, the company agreed to waive a contractual limit on the size of the equity stake that Laurus was permitted to hold.

Laurus' acquisition of its approximately 8.8 percent equity stake was reported in a filing made with the SEC on Tuesday, August 2.

"Management had identified the reduction of our interest and dividend payments as a strategic priority earlier in the year and we are very pleased to have successfully concluded these negotiations with this institutional investor," reported Patrick. "Despite very strong growth, interest and dividend payments have had a negative impact on net income to shareholders. We believe our efforts to eliminate these costs will improve net earnings over the next six to 12 months."

Lim reported that the company used funds raised in a private placement to fund the retirement of the note and preferred stock. As a result of the agreement to issue common stock instead of a cash payment, the company estimated that approximately $500,000 of funds intended for its debt reduction program will be available for other uses.

In addition to the retirement of the note and preferred stock held by Laurus, Lim today exercised his right to convert 100,000 shares of preferred stock of which he is the only holder, into 8 million shares of common stock eliminating $220,000 in annual dividend payments.

About Secured Digital Applications:

Secured Digital Applications, Inc. and its subsidiaries are involved in the development of practical applications for digital technology in home and industry. The SDGL companies include businesses that focus on the integration and provision of secured shipping and supply chain management service; the sale of biometrics security systems; and development of Web based interactive multimedia content; systems integration, servicing of computers, the sale of the EyStar SmartHome Management System, broadband modems, IP cameras, Apple computers and peripherals. For more information, please visit www.digitalapps.net, www.eystar.com and www.gallant-it.com.my.