Patent Granted in Mexico for Breakthrough CodecSys Video Compression Technology from Broadcast International

Business Wire, July 14, 2008

SALT LAKE CITY -- Broadcast International (OTCBB: BCST) ("BI") today announced that a patent for its breakthrough multi-codec video compression technology, CodecSys, has been granted by the Mexico patent office. The technology slashes bandwidth requirements for video transmitted over satellite, cable, IP, and wireless media. CodecSys allows, for example, up to twelve HDTV channels to be broadcast over the same media which currently support only two.

CodecSys video compression technology enables multiple expert codecs (used in the compression of video signals for transmission) to be used to minimize the bandwidth required to transmit video over bandwidth-constrained networks such as the Internet. Other solutions use only a single, general purpose codec, and require up to six times more bandwidth to transmit the same video.

The Mexico patent is the eighth international patent allowed for Broadcast International's CodecSys video compression technology. Patents for the core CodecSys multi-codec switching technology have also been granted in the U.S., Australia, Singapore, India, Korea, Malaysia and Russia.

According to Rod Tiede, CEO of Broadcast International, "We're pleased to add the Mexico patent to our international patent portfolio for CodecSys. Our patented multi-codec approach compresses video down to a fraction of current rates, and will make possible a whole new range of video applications including live, streaming video over the Internet and to cell phones."

About CodecSys video compression

Broadcast International's CodecSys software utilizes a patented, multi-codec approach in which a video stream is analyzed and the codec best suited for a particular frame or video sequence is automatically selected from an entire library of specialized codecs.

These specialist codecs are designed to handle particular types of high-bandwidth video frames or streams, such as fast-motion sequences in a basketball game or explosions in an action movie. These types of video are extremely bandwidth-intensive and pose chokepoints to generalist codecs. By selecting the best expert codec for the job, CodecSys is able to eliminate these chokepoints and offer performance several times higher than competitive products.

One of the key benefits of the CodecSys software approach is that CodecSys-based video encoders can be easily changed as standards and requirements evolve. With CodecSys, codecs can be upgraded and added through simple, cost-effective software downloads. Other commercial solutions based on embedded systems require costly, full replacement. This upgradeable, "future-proof" approach eliminates the need for the costly replacement cycles required with encoders based on tightly-coupled hardware/software architectures.

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 (OTCBB: 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.