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

Friday, August 24, 2007

Slashes Bandwidth 80%+ for Satellite, Cable, IP and Wireless Delivery of Video to Cell Phones, PDAs, HDTVs, and Computers

Salt Lake City, UT -- Broadcast International (OTCBB: BCST "BI") today announced that the patent for its core CodecSys video compression technology has been allowed by the U.S. patent office. CodecSys is based on breakthrough artificial intelligence technology that dramatically cuts video bandwidth requirements over satellite, cable, IP, and wireless media.

The new technology will enable, for example, twelve HDTV channels to be broadcast over the same media that currently support only two – a bandwidth reduction of more than 80%. The CodecSys technology will likewise enable a new generation of bandwidth-intensive video applications such as real-time video chat and live streaming video to cell phones and iPhones® -- applications that until now have been cost-prohibitive and impractical.

The U.S. patent is the seventh international patent allowed for the CodecSys technology. Patents have also been granted in Australia, Singapore, India, Korea, Malaysia and Russia. Broadcast International already has licensing agreements in place with IBM, Vanguard Software Solutions, Zenterio and Helius for the patented CodecSys technology. The agreement with IBM is a joint development effort to implement the CodecSys compression system on the IBM® BladeCenter® QS20 "Cell Blade" offering for the first time, true, real-time video compression with HDTV quality.

"This is an enormous step forward for the company and the industry as a whole," said Rod Tiede, Broadcast International CEO. "The demand for video is virtually unlimited. With computers, HDTVs and video-enabled cell phones, iPods® and PDAs in the hands and homes of nearly every consumer, the only real obstacle is lack of bandwidth. Our patented CodecSys technology is the only approach that fundamentally removes the bandwidth barrier for both new and existing video applications. When you can deliver HD-quality video under 3Mbs, as we can with the CodecSys technology, the sky is literally the limit for both traditional and new video applications."

"The approach taken by Broadcast International’s patent application is a true paradigm shift in video compression technology," said Kory D. Christensen of Stoel Rives, LLP, patent attorney for Broadcast International. "Traditional techniques have always relied on a single codec agreed upon by the sender and receiver of a video signal. Broadcast International has turned tradition on its head by allowing each segment of a video stream to be compressed using an optimal codec selected from a library of codecs. This approach leverages all the strengths of each codec while avoiding its weaknesses. The result is incredibly high quality video requiring less bandwidth than conventional, single codec techniques. The fact that CodecSys technology is so readily adaptable to parallel processing is exciting and will likely be the ‘killer app’ for the new multi-core processors in production and under development."

The CodecSys software utilizes artificial intelligence technology to dynamically switch between optimized, expert codecs for specific video content, such as bright and dark, fast-motion or slow motion scenes, resulting in the highest video quality at the lowest possible bandwidth. Another major benefit of this approach is that new codecs can be readily incorporated as they become available, virtually "future-proofing" the newly patented approach.

The United States Patent and Trademark Office allowed all pending claims of Broadcast International’s groundbreaking patent application on the CodecSys® video compression technology. The patent application covers any compression system in which a video stream is divided into multiple segments, and each segment is compressed using a number of different codecs to determine which codec produces the best video quality without exceeding a target data rate. The CodecSys® inventors discovered that no single codec works best for all types of video. By testing multiple codecs and selecting an optimal codec for each video segment, the invention allows for much higher compression ratios without the usual decrease in video quality.

The patent application also covers real-time video compression in which different codecs are tested on a video segment in parallel, which is ideal for implementation in multiprocessing environments, such as IBM’s Cell processor. Aside from applications in IPTV and video conferencing, the patented technology offers enormous opportunities in bandwidth-constrained applications, such as delivering high-quality video to cellular telephones and the next generation of wireless video iPods®.

About Broadcast International

Broadcast International is a leading provider of video-powered business solutions, including IP and digital satellite, Internet streaming, and other types of wired/wireless network distribution. In addition, BI assists clients with video production, rich media development and a full range of network support services. BI also possesses a patented technology, CodecSys, which provides enhanced video at current bandwidths or reduces the cost of bandwidth while maintaining quality.

Broadcast International was founded in 1984 and is a public company (OTCBB: BCST) headquartered in Salt Lake City, UT. For more information and to learn more about Broadcast International and CodecSys on the Web go to and

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, QS20 and Power Architecture are trademarks of International Business Machines Corporation in the United States, other countries or both.

iPod and iPhone are trademarks of Apple, Inc. in the United States, other countries or both.

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