Broadcast International to Demo Video Compression Solution with IBM at IBC

Business Wire, Sept 7, 2007

CodecSys and IBM Cell Blade Server Reduce Bandwidth Needs by More Than 50 Percent for Live HD Video

AMSTERDAM, Netherlands -- Broadcast International (OTC: BCST "BI") today announced that it will debut the first public demonstrations of its new encoding solution, developed in collaboration with IBM, at the IBC exposition in Amsterdam, September 7-11, 2007.

The encoder features BI's patented CodecSys compression technology on the IBM[R] BladeCenter[R] QS20 "Cell Blade." The powerful combination of technologies significantly improves performance and reduces costs associated with video compression, while delivering live HD video at less than half the bandwidth normally required.

Industry pundits agree that a crisis in bandwidth is looming as user demand for video, particularly HD programming, accelerates. Cable providers are under intense pressure, but other delivery platforms such as broadcast TV, satellite, telcos and wireless all face a similar challenge.

"We expect to cause quite a stir at IBC when we show pre-encoded HD streams at under 3Mbs, as well as real-time HD encoding at similarly remarkable bandwidths," said Rod Tiede, Broadcast International CEO. "That's the capability we gain by putting our CodecSys multi-codec encoding software on IBM's Cell/B.E. multi-core processing hardware; the two technologies are ideally suited to each other. In addition to significantly increased processing power, the IBM platform is highly scalable and programmable, which enables users to customize and upgrade in a way that has never before been possible."

The CodecSys system utilizes and switches between optimized, expert codecs for specific video content, such as bright, dark, fast-motion, or slow-motion scenes, resulting in the highest quality video at the lowest possible bandwidth. Another major benefit of this combination of technologies is that new codecs can be incorporated into the system as needed, virtually eliminating encoding hardware obsolescence.

"Broadcasters face the universal challenge of meeting the growing demand for HD, while trying to minimize their bandwidth costs," said Dick Anderson, general manager for IBM Media and Entertainment. "The Cell/B.E. processor is uniquely positioned to address compute-intensive, high quality media processing requirements. Our cooperation with Broadcast International shows how rich this capability can be."

The revolutionary Cell/B.E. processor is a breakthrough design featuring a central processing core, based on IBM's industry leading Power Architecture[TM] technology, and eight synergistic processing elements (SPE). Cell/B.E. "supercharges" compute-intensive applications, offering fast performance for computer entertainment, virtual-reality, wireless downloads, real-time video chat, interactive TV shows and other "image-hungry" computing environments. The groundbreaking Cell/B.E. processor also appears in products such as Sony Computer Entertainment's PLAYSTATION([R])3, Toshiba's Cell/B.E. Reference Set, a development tool for Cell/B.E. products, and Mercury Computer's hardware boards and MultiCore Plus[TM], a software development kit.

Presentations on the new IBM-BI encoding solution will be shown in the IBM booth, numbers 2.120 & 2.121 in Hall 2 of the Amsterdam RAI Convention Center. The current demonstration is on IBM BladeCenter QS20, but BI also plans to ship production versions using the recently announced IBM BladeCenter QS21, enabling twice the performance in the same space being demonstrated today.

About Broadcast International

Broadcast International is a leading provider of video-powered broadcast solutions, including IP, and digital satellite, Internet streaming and other types of wired/wireless network distribution. BI's patented CodecSys software is a breakthrough, artificial intelligence-based video compression technology that cuts video bandwidth requirements more than 80% over satellite, cable, IP and wireless networks. By slashing bandwidth needs, CodecSys enables a new generation of applications such as streaming video to cell phones, and offers unprecedented price/ performance benefits for existing applications such as HD video.

Broadcast International is a public company (OTC: BCST) headquartered in Salt Lake City, UT. For more information go to www.brin.com and www.codecsys.com.

Forward-Looking Statements

All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our Business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.