State of Connecticut Small Business Development Center Network Signs Formal Letter of Intent with IBS Group, Inc

Business Wire, Nov 30, 2004

CELEBRATION, Fla. -- IBSG International, Inc., (the "Company"), (OTCBB:IGII) reports that its subsidiary, IBS Group, Inc. is pleased to announce that the State of Connecticut Small Business Development Center (CSBDC) has signed a Formal Letter of Intent (LOI) to begin implementation of the Company's subsidiary, IBS Group's, (IBSG) digital management as the state wide solution for use within the state's Small Business Development Center (SBDC) network. Implementation is expected to begin in the first quarter of 2005 following final contract execution. When fully implemented, IBSG expects the project could generate well over $3 million in revenues over a five year period of time, with a projected profit margin of nearly 40%. This announcement comes on the heels of IBSG International's recent 3rd quarter results showing record revenue and profitability.

The CSBDC intends to incorporate the many features of the system to assist in facilitating services as well as provide new and exemplary services to the businesses they serve within the state. With this agreement, IBSG and the CSBDC will begin the first stages of project implementation which includes: defining system requirements for installation and any modifications the state may request. Concurrent with the installation activities will be the launching of a comprehensive marketing initiative to promote and present the many features and advantages of the system to other Connecticut businesses and government municipalities who would benefit by participating in this project. Strategic planning and implementation activities will begin immediately after the holiday season.

The Connecticut SBDC Network operates in partnership with the University of Connecticut, the State of Connecticut, the federal Small Business Administration (SBA), and the private sector. The CSBDC's mission is to assist in the creation and growth of small businesses in Connecticut. The CSBDC provides one-on-one confidential business management counseling in all aspects of starting or growing a business. The CSBDC also conducts small business training and educational workshops throughout the state. CSBDC operates from 11 Regional offices and their State Headquarters is located on the main campus of the University of Connecticut in Storrs. Since its creation by the US Congress in 1981, the CSBDC has provided counseling assistance to over 37,000 entrepreneurs, and conducted over 3,600 workshops and seminars for nearly 90,000 attendees. In the last year reported, the CSBDC counseled over 1,500 clients enabling them to generate approximately $8 million in aggregate sales revenues for the year. In addition, they were able to help their clients obtain over $10 million in debt and equity financing from various sources. The CSBDC is now looking to IBSG to assist them in their efforts to expand the reach and value of the services provided to their clients.

Richard Cheney, newly named Interim State Director of the Connecticut Small Business Development Center Network, stated, "IBSG's NetPool system is one of the most comprehensive packages I have seen yet. We are looking forward to exploring the possibility of implementing its powerful capabilities within our state SBDC network for use by our own staff and the small business clients we serve." "The state of Connecticut and Mr. Cheney have a tremendous vision on not only how the CSBDC intends to provide services to the small to mid size business community but to create a true digital commerce service center for the state," said Alan M. Shafer, IBSG Vice President of Business Development, "and we at IBSG are fully prepared to respond with enthusiasm and dedication to providing an outstanding, proven system, and marketing support for the state of Connecticut."

Dr. Stephen Huber, COO of IBSG, stated, "IBSG is making substantial progress in our efforts to acquire new clients and new business, and this relationship with the Connecticut SBDC keeps us on track with our 2004 marketing objectives."

About IBSG International, Inc.:

The IBSG International offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., Chambers of Commerce) and Fortune 1000 corporations through the licensing of its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the NetPool Data System (copyrighted). The Company acquired the assets of a security software company from the U.K. and created a subsidiary called Secure Blue, Inc. in June of 2004. Secure Blue will provide Sarbanes-Oxley security software and system analysis software to the IBSG markets, as well as provide such software and system analysis directly to its independent customer base.

As software providers, system integrators and Application Service Provider, IBSG, Inc. and Secure Blue, Inc. generate their revenue from license sales, system modifications, and system support and a percentage of monthly customer fees. The typical IBSG/Secure Blue license agreement has a five-year term, but, being updated on an annual basis, is almost invariably renewed upon expiration (to date the Company has had only one licensee not renew, due to the expiration of the licensee's contract with their client).