Proceedings

IN THE MATTER OF THE SECURITIES ACT
R.S.O. 1990, c. S.5, AS AMENDED

AND

IN THE MATTER OF
ADRIAN BEALE, DOMINIQUE BOITER, MICHAEL BUSUTTIL, PETER S.CROMBIE, PAUL CURLEY, TOM DE FAYE, ALAN GANE, LARRY HALEY, PHILHEMBRUFF, RAYMOND V. HESSION, ROLAND HORST, TONY JOHNSTON, BOBLO, TERENCE J. McCONNELL, GARY M. MUNSINGER, SCOTT NELSON, ANDY A.RYBAK, JAY SARKAR, THEODORE M. WELP, AND RESEARCH CORPORATIONTECHNOLOGIES, INC.

STATEMENT OF ALLEGATIONS OF STAFF
OF THE ONTARIO SECURITIES COMMISSION

Staff of the Ontario Securities Commission make the following allegations:

1. IDS Intelligent Detection Systems Inc. ("IDS") is incorporated under the laws ofCanada. IDS is a reporting issuer in Ontario.

2. Each of Adrian Beale, Dominique Boiter, Michael Busuttil, Peter S. Crombie, PaulCurley, Tom De Faye, Alan Gane, Larry Haley, Phil Hembruff, Raymond V.Hession, Roland Horst, Tony Johnston, Bob Lo, Terence J. McConnell, Gary M.Munsinger, Scott Nelson, Andy A. Rybak, Jay Sarkar, Theodore M. Welp, andResearch Corporation Technologies, Inc.(individually, a "Respondent" andcollectively, the "Respondents") is, or was during the six-month period ended June30, 2000, a director, officer, significant shareholder (beneficial ownership of 10%or more of the voting rights of IDS) or individual that has, or may have, access tomaterial undisclosed information.

3. IDS failed to file interim financial statements for the six-month period ended June30, 2000 on or before August 29, 2000, contrary to subsection 78(1) of theSecurities Act (Ontario).

4. By virtue of his/her/its relationship, each Respondent has, or may have, access toinformation regarding the affairs of IDSthat has not been generally disclosed.

5. It would be prejudicial to the public interest to allow the Respondents to trade in thesecurities of IDSuntil such time as all disclosure required by Ontario securities lawhas been made by IDS.

6. It is therefore in the public interest for the Commission to order that all trading,whether direct or indirect, in the securities of IDS by the Respondents cease untilsuch time as IDS has made all filings it is required to make under Ontario securitieslaw.