Thursday, August 6, 2009

ID Watchdog, Inc. Reports Significant Revenue Increases for Second Quarter 2009

DENVER, CO – August 6, 2009 – ID Watchdog, Inc. (TSX Venture: IDW), the most comprehensive consumer identity monitoring service available, reported a 59% increase for the second quarter 2009 compared with first quarter of 2009. All amounts are in US dollars. Revenue increased 75% and 58%, respectively, when comparing the quarter and the six months ended June 30, 2009 to the same periods in the previous year.

Revenue for the second quarter 2009 increased to $1.9 million compared to revenue of $1.1 million for the second quarter 2008. Revenue for the six months ended June 30, 2009 increased to $3.1 million compared to revenue of $2.0 million for six months ended June 30, 2008. The gross profit percentage remained constant at approximately 76% for both the 2009 quarter and six months periods.

During the second quarter 2009, $3.5 million of the Company’s convertible debenture holders converted their holdings into ordinary shares of the Company’s stock. At June 30, 2009, only $80,000 of the convertible debentures remains on the books. “This event strengthens the Company’s balance sheet”, said Daryl Yurek, CEO, “and we appreciate the confidence displayed by our debenture holders.

“Our significant revenue increases are attributable to our focus on the marketing initiatives we have implemented to support our suite of identity theft protection, detection, and resolution products and services,” said Daryl Yurek, CEO.

“We continue to see increased demand for our products, especially given that during economic downturns, crime rates historically rise and consumers want to feel better protected. ID Watchdog provides a robust and cost-effective solution to our customers.

In order to conserve operating cash, beginning in the second quarter of 2009, the Company has decreased its marketing expenses and reduced its general and administrative expenses. The Company plans to maintain its existing customers and decrease expenditures until we obtain additional financing.

The MD&A and the consolidated financial statements and the accompany notes are available on the Company's website at www.idwatchdog.com and the SEDAR website at www.sedar.com.

About ID Watchdog, Inc.
Headquartered in Denver, ID Watchdog is the only identity theft detection and resolution company that provides patent-pending, three-tiered comprehensive monitoring, detection and resolution for identity theft. Unlike its competitors, ID Watchdog proactively detects identity theft problems at their source. Developed with the assistance of national consumer advocacy groups; the U.S. Postal Service; federal, state and local law enforcement agencies, and state and local Attorneys General, ID Watchdog’s service is focused on detecting the source of identity theft problems as early as possible, in as many places as possible, and taking immediate corrective action on behalf of the consumer. For more information, please visit www.IDwatchdog.com.

Contact:

Investor Relations:
Felicia Morgan
ID Watchdog, Inc.
303-339-8099
InvestorRelations@idwatchdog.com
www.idwatchdog.com

Cautionary Statement on Forward-looking Statements
This news release includes "forward-looking information" which addresses future events and conditions which are subject to various risks and uncertainties. Generally, the words "expect", "intend", "estimate", "will" and similar expressions identify forward-looking information. By their very nature, forward-looking information are subject to known and unknown risks and uncertainties that may cause the actual results to differ materially from those anticipated in such forward-looking statements, some of which may be beyond the Company’s control. Although the Company believes that its expectations reflected in these forward-looking information are reasonable, no assurance can be given that actual results will be consistent with these forward-looking information. Important factors that could cause actual results to differ from these forward-looking information are disclosed in the Company’s filings with Canadian regulators at www.sedar.com. ID Watchdog assumes no obligation to update the forward looking information of management beliefs, opinions, projections, or other factors should they change. Investors are cautioned not to place undue reliance on forward-looking information, which speak only as of the date they are made.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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