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U.S. Patent Allowed for Key Video Compression Technology from Broadcast International


Thursday, June 26, 2008

Salt Lake City, UT -- Broadcast International (OTCBB: BCST) ("BI") today announced that the patent for a key video compression technology has been granted by the U.S. patent office. The technology is included in the company’s breakthrough video compression software, CodecSys, which 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.

In August of 2007, a patent was granted for the core CodecSys video compression technology, which 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. The new patent broadly covers a technique for intelligently switching among the internal settings of a single codec to maintain a target data rate, while ensuring video quality.

According to Rod Tiede, CEO of Broadcast International, "The two patents together protect the core capabilities that make our video compression capability a true breakthrough. With the new patent, Broadcast International is the only vendor that can use multiple codecs -- or intelligent switching on a single codec -- to compress video down to a fraction of current rates. With our technology, including that covered by this patent, we can compress typical HD 720p video below 3Mbps. This level of compression will usher in a new era of video, making applications such as live, streaming video over the Internet and to cell phones a reality instead of a promise."

New patent one of eight international patents for BI’s video compression technology

The new U.S. patent is the eighth international patent allowed for Broadcast International’s 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.

The newly allowed patent is for a technique that includes a process of (1) compressing a segment of an input signal (e.g., video or audio) using an initial quality setting, (2) calculating a data rate that would result from adding the compressed segment to an output signal, and, (3) in response to finding that the calculated data rate would exceed the target rate, recompressing the segment using an automatically-selected quality setting that produces a lower data rate than the calculated data rate.

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.



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