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GDSI Acquires Privately Held Rontan Group of Brazil

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GDSI Acquires Brazil-Based Rontan Group

GDSI has announced that it has acquired the Rontan Group ("Rontan"), headquartered in Sao Paulo state, Brazil. At an upcoming special meeting, GDSI's board of directors is expected to elect Rontan's CEO, Edigimar A. Maximiliano Jr., Chief Executive Officer of GDSI and Richard J. Sullivan Non-Executive Chairman.

Founded in 1970, privately held Rontan designs, manufactures and delivers emergency warning equipment specifically for public safety organizations and professionals. Rontan exports products to many of the world's most competitive markets, including the United States, Canada, Central and South America, Europe, Asia, Australia, Middle East and Africa. The largest specialty vehicles and acoustic and visual signaling equipment company in Latin America, Rontan has earned ISO and TS Certifications, attesting to the quality of its management systems.

With 2014 revenue of R$ 500 million (approximately US$ 128 million), Rontan produces some 5,000 vehicles per month and has approximately 1,200 direct and indirect employees. In 1999, through a partnership with the biggest worldwide manufacturers of vehicles for fire fighters, Rontan became an authorized representative of the Oshkosh Pierce vehicles.

Rontan Telecom is the largest manufacturer and distributor of Motorola radios and communication trunking systems for police forces in Brazil, providing technical assistance on the full line of Motorola radios.

"This exciting transaction represents a significant step forward for GDSI," said Richard J. Sullivan, expected to be named non-executive Chairman of GDSI. "We have been extremely impressed by Rontan's 45 years of experience and exceptional record of serving customer needs with top-quality products and services – both in Brazil and internationally. Rontan's capabilities create enormous synergies with the specialty vehicles produced by North American Custom Specialty Vehicles (NACSV), GDSI's wholly-owned subsidiary. We're especially delighted that "Max" Maximilliano (Rontan's CEO, Edigimar A. Maximilliano) will serve as GDSI's CEO. Max is an extremely talented and experienced leader, and we're excited about welcoming Max and the entire Rontan team to the growing GDSI family."

"This is a momentous milestone in Rontan's 45-year history," said Edigimar Maximilliano ("Max"), expected to be named GDSI's new CEO. "The combination of Rontan and GDSI – with GDSI's experienced management team and board of directors headed by Richard Sullivan – will help us expand our capabilities while continuing to provide our worldwide customers with world-class products and services. I'm looking forward to leveraging Rontan's extensive experience and international reach to enable the new GDSI team to seize the many profitable growth opportunities envisioned by GDSI's global strategy."

Refer to GDSI's 8-K filing for more details about this transaction.

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William J. Delgado, Chairman and Chief Executive Officer of Global Digital Solutions, Inc., Issues Shareholder Letter Regarding Changes in Executive Management, Near- and Long-Term Plans

William J. Delgado, newly-named Chairman and Chief Executive Officer, has announced the resignation of Richard J. Sullivan as Chairman and CEO of Global Digital Solutions, Inc. along with the resignations of directors Stephanie C. Sullivan and Arthur F. Noterman. Delgado explained the Company's near-term plans are to resolve certain debt items and complete, if possible, the announced acquisition of Brazilian firm, Rontan Group (Rontan Electrometalurgica, LTDA).

According to Delgado, Since May 1, 2012, Global Digital Solutions, Inc. (the "Company") has been focusing on acquisitions of defense and defense-related entities both in the United States and abroad but has been unable to achieve certain key goals during the period.  Delgado announced GDSI has embarked on a program to resolve certain of these issues and revitalize the Company.  The plan includes completing the annual audit and all required filings as well as working closely with trade creditors and debt holders.  Next, the Company will be raising capital to not only pay off the debt but also provide working capital. Delgado said the Company will avoid any toxic financing arrangements as had been done in the past.  He also said the company will be withdrawing its recently-filed Schedule 14-A.

Delgado said GDSI will be reviewing strategic alternatives, including recent negotiations and agreements with Rontan in Brazil. He indicated GDSI’s Management feels strongly the Company has a strong and valid agreement for the purchase of Rontan and will continue to pursue all avenues to complete the transaction per the terms and conditions previously disclosed in the Share Purchase and Sale Agreement of October, 2015. He said the Company is also developing several other strategic initiatives which should be announced soon.  He added that Management will ensure the Company’s disclosures are fair to the investing public and, of course, meet all regulatory guidelines.

Full text of the press release announcing the letter