Broadcast International Inks Deal with IBM for Breakthrough Video Compression Technology

Broadcast International (OTCBB: BCST "BI") today announced a new
license agreement with IBM.

The agreement covers BI´s patented CodecSys video compression
software running on IBM´s Cell Broadband Engine(TM) (Cell/B.E.)
multi-core processor and the IBM BladeCenter(R) QS21 server. The
combined technologies promise to change the video distribution world
by making it possible for cable, satellite or IPTV providers to
deliver live HDTV at compression levels four to six times higher than
is currently possible. For example, HD video could be delivered at 3
Mbps (in h.264) instead of 19.4 Mbps (in MPEG-2) transport stream.

CodecSys, bundled with BladeCenter QS21, will be targeted at
customers seeking digital content distribution infrastructure
solutions such as video backhaul (capturing camera feeds from one
location, e.g., a stadium, and moving it back to the studio). The key
building blocks of this solution, the multiple codecs running on
Cell/B.E., will also be made available through licensing to IBM
business partners such as OEM equipment manufacturers to integrate
with their traditional encoding solutions and improve their
flexibility beyond traditional digital signal processors.

"This combination of IBM´s incredibly powerful Cell chip and BI´s
completely new approach to encoding, using multiple expert encoders in
parallel, will change the entire economics of the video industry
overnight," said Peter White, CEO of Rethink Research Associates in
the U.K., and contributing analyst for Multimedia Research Group.

Rod Tiede, CEO of Broadcast International, said, "The power of
these technologies working together marks an industry milestone and a
true technology breakthrough. The integrated solution will be able to
deliver live, HD video at under 3Mbps, and in the future, we expect to
take that all the way down to 1.5 Mbps."

"Our clients face a formidable challenge of meeting the growing
consumer demand for HD, while trying to minimize their bandwidth
costs," said Dick Anderson, general manager, IBM Media &
Entertainment. "Pairing the Cell/B.E. and BladeCenter QS21 with
CodecSys offers them a powerful and cost-effective alternative."

Patented, multi-codec approach

Broadcast International has patented the unique CodecSys approach
of using multiple expert codecs rather than single, general-purpose
codecs. By automatically switching between specialized codecs,
choosing the best one for a particular frame or video sequence,
CodecSys is able to reduce video bandwidth requirements more than 80%
for HD video over all types of delivery platforms including broadcast,
cable, IPTV, wireless and the Internet. The IBM Cell/B.E. processor
accelerates the CodecSys codec-switching process, providing a platform
for nearly unlimited processing power and video compression
capabilities.

BI´s software is based on an open software architecture that can
accommodate new standards, such as H.264, as well as new specialized
codecs as they come onto the market. The IBM Cell/B.E. processor
hardware platform is also highly programmable and scalable, enabling
customers to add additional processing power by simply adding extra
processors or "blades."

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. The IBM BladeCenter QS21 is based on Cell/B.E. to
offer clients extreme performance to accelerate compute-intensive
tasks like video distribution and delivers twice the memory and
density for order-of-magnitude performance gains over the previous
model.

IBM and BI have been involved in a co-development effort since
April 2007, to integrate the Cell/B.E. processor with CodecSys. At IBC
in Amsterdam in September, Broadcast International and IBM
demonstrated the solution publicly for the first time.

For more of Peter White´s article, see:
http://www.rethinkresearch.biz/free_page_view.asp?crypt=%B3%9C%C2%
97%8B%80%86%AF%BC%C2%88%97juw%90%89

(Due to its length, this URL may need to be copied/pasted into
your Internet browser´s address field. Remove the extra space if one
exists.)

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.

BladeCenter, IBM, QS21 and Power Architecture are trademarks of
International Business Machines Corporation in the United States,
other countries or both.

PLAYSTATION is a registered trademark and Cell Broadband Engine
and Cell/B.E. are trademarks of Sony Computer Entertainment, Inc., in
the United States, other countries, or both and is used under license
there from.