BI Backgrounder

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History

Broadcast International (BI) was founded in 1984 as an integrator of video-powered business solutions that enabled clients to deliver video communications to their customers wherever and whenever they were needed. Since that time, BI has developed a full arsenal of services including video production in its state-of-the-art studios, rich media design/creation and content delivery, as well as support services such as network engineering and design, network management, installation, helps desk, and field maintenance. BI has delivered client content via a spectrum of platforms including satellite (IP, Digital and DBS), streaming, Interactive Distance Learning (IDL), videoconferencing, LAN/WAN integration for desktop delivery, portable video players and WiFi. Broadcast International is a public company (OTC BB:BCST) and is headquartered in Salt Lake City, Utah.

The company's consistent success in building and managing private satellite networks and providing video, audio and web broadcasting solutions led to its evolution from a systems integrator to a developer of advanced technology solutions for video delivery. In 2003, the company acquired a core codec-switching technology and hired its development team. Under BI's management, this software technology became CodecSys, the industry's most advanced video-compression software, capable of reducing bandwidth needs more than 80% for HD quality video over satellite, cable, IP and wireless networks. CodecSys technology enables, for example, a cable provider to deliver twelve HD channels over the same bandwidth that otherwise supports only two. The CodecSys technology is now patented in seven countries including the U.S.

Customers

Broadcast International customers include: Abercrombie & Fitch, Albertson's, Bank of America, Caterpillar, Chevron, Muzak, Safeway, Sprint, Staples, Subway, Wachovia, and Yahoo.

CodecSys: Breaking the bandwidth barrier

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. Likewise, a new generation of bandwidth-intensive applications such as live video chat and live streaming video to cell phones is waiting on the horizon for the bandwidth barrier to be successfully broken.
CodecSys, with its ability to slash bandwidth requirements more than 80% is the solution to the bandwidth crunch. CodecSys achieves its breakthrough performance through a patented architecture that uses artificial intelligence to analyze a video stream and select the codec (algorithms that compress digital video prior to streaming on the Internet) best-suited to a particular video frame sequence from an entire library of specialized codecs.

This multiple codec approach is in sharp contrast to all competitive solutions since every other solution relies on single codecs only. Because each individual codec is optimized for only a particular type of video frame or stream (fast or slow motion, for example) no single-codec solution can possibly rival the performance or quality offered by CodecSys with its multiple codecs. In other words, rather than running a stream of video through one codec and getting the best video and audio that one, generalist codec has to offer, CodecSys runs each frame of video past a collection of the highest-quality codecs available and determines which codec is best for that particular frame or series of frames.

For a large organization, CodecSys can mean a savings of hundreds of thousands of dollars per year in satellite or terrestrial bandwidth expenses. For a smaller to mid-sized company, this solution can make live Webcasts and on-demand streaming an affordable reality at quality levels previously possible only via satellite.

CodecSys is "future-proof"

In addition to providing unparalleled performance, CodecSys is unrivaled in its ability to accommodate the latest standards or new codec technologies as they emerge on the market. With CodecSys, new codecs can be readily added to the library as they become available, with a simple software upgrade. While competitive solutions based on tightly coupled hardware/software architectures are rendered obsolete by change, the CodecSys software architecture is designed from the ground up to embrace it. CodecSys is the only video compression solution on the market that is virtually "future-proof," protecting the infrastructure investments of its customers in this rapidly changing market.

CodecSys, IBM and multi-core processing

The CodecSys multi-codec software architecture is particularly well-suited to exploit the power of the new generation of multi-core parallel processors such as IBM's Cell Broadband Engine (Cell B/E), that "supercharge" compute-intensive applications such as video compression.

Broadcast International and IBM have entered into a joint development project to integrate and optimize the IBM BladeCenter QS21 "Blade Center" and the CodecSys software. This powerful and synergistic combination of technologies will bring video compression to unprecedented levels, cutting bandwidth requirements more than 80%.

Like the CodecSys software, the IBM BladeCenter is scalable and upgradeable; adding additional processing power is as easy as adding another processing "blade."

CodecSys patents

BI's breakthrough approach of using multiple optimized codecs is patented by Broadcast International in seven countries, including the U.S., Russia, India, Malaysia, Australia, Korea, and Singapore.

CodecSys Highlights

• In April 2004, Broadcast International received TV Technology's 2004 STAR Award for Superior Technology for its CodecSys multi-Codec system.
• In April 2004 SportsCast Network (SCN) and the Hearts football team of the Scottish Premier League delivered the first webcast football match utilizing CodecSys technology to fans throughout the world.
• In May 2004 Broadcast International won a Stoel Rives 2004 Utah Innovation Award in the electrical devices category for its CodecSys Multi-Codec System.
• On August 18, 2004 Broadcast International announced that the first international patent for its CodecSys technology had been granted by the Singapore patent office.
• In November 2004 Popular Science Magazine honored Codecsys with its "Best of What's New" award.\
• In November 2004 Japan's Nikkei Electronics magazine recognized BI's CodecSys technology as one of the top-20 technologies around the world.
• On April 20, 2006 Broadcast International announced it had signed a licensing agreement with Zenterio AB -- a Swedish company with a focus on mobile and digital TV technologies and solutions-- to deploy CodecSys in a cell phone application co-developed with Intel.
• On March 16, 2007, Broadcast International announced that it had established with IBM the Broadcast International-IBM Joint Development Center to collaborate with IBM engineers on integrating BI's patented CodecSys multi-codec encoding system on IBM's multi-core Cell Broadband Engine™ (Cell/B.E.) based BladeCenter QS20.
• On August 23, 2007 a patent for the CodecSys technology was allowed by the U.S. patent office.
• On September 7, 2007 IBM and BI showed the first public demonstration of the CodecSys software running on the multi-core IBM BladeCenter QS20 at the IBC conference in Amsterdam.
• On Jan 7, 2008, BI and On2 Technologies announced an agreement to make real-time, high quality video, including high-definition (HD) video, accessible anywhere to capable network-connected devices. Under the agreement, Broadcast International will integrate On2's market-leading TrueMotion® codecs, which have more than 1 billion deployments worldwide, with CodecSys.
• On April 14, 2008 at NAB, BI demonstrated live HD video encoding under 3 Mbps. This marks the first time in the broadcast industry that video will be encoded from a live camera feed at this rate of video compression. BI also demonstrated real-time video encoding and transcoding at the IBM booth where its CodecSys video compression software was integrated with IBM's Media Hub Solution Framework in a production broadcast environment.

Management

	Rod Tiede – President/CEO As President and CEO of Broadcast International, Rod Tiede is responsible for fostering the vision, directing the overall management and providing progressive leadership for the company. After obtaining a Bachelor of Science Degree in Industrial Engineering from the University of Washington, Rod gained invaluable retail technological experience with Safeway Corporate offices. While at Safeway he was responsible for launching the Safeway Satellite Network. Since 1988, Rod has been instrumental in directing the worldwide reach of Broadcast International during its early years. Through his innovation and tenacious management style, Rod has insured BI's growth as its Director of Sales, Vice President and General Manager, and now as President and CEO. Rod's continued forward-looking strategy has made BI a preferred international technology integrator.
	James E. Solomon – CFO/Corporate Secretary Jim Solomon, a Certified Public Accountant, is a successful businessman who has been involved in the development of several multi-million dollar operations. He currently serves on the Board of Directors of two privately-held and two publicly-held corporations. His expertise includes strategic development, international expansion, joint venture partnerships and mergers/acquisitions. Jim is an Adjunct Professor at the Graduate School of Business of the University of Utah where he also serves as a Director of the UCRA Investment Fund. Formerly, Jim held several management positions at Exxon Corporation (1972 to 1980) as well as Vice President - Finance and Administration at Farm Management Company (1980 to 1983), one of the world's largest agricultural companies. Jim graduated Magna Cum Laude from the University of Utah in 1972. He is a contributing author to a prominent accounting textbook.
	Steve Jones – Senior VP/GM, CodecSys Division Steve Jones is Senior Vice President and General Manager of the CodecSys Division. He has held numerous executive-level positions of several high tech companies where he led engineering and sales teams to successful product launches. Among those are Alianza, Auction Trust Network, Solera Networks, Vykor, Data Channel, Mosaix, Novell and Word Perfect. Mr. Jones has an MBA degreee from the University of Utah and BS degree from Brigham Young University.
	Ron Bell – CTO, CodecSys Division Ron Bell joined the company in order to oversee the evolution of the company's breakthrough CodecSys software. Ron is a well-known international figure in the definition, design, development and application of a wide range of technologies including microprocessors, operating systems, and networking. Ron was involved in the evolution of the UNIX operating system while serving as the General Manager of the UNIX Systems Group at Unisys and later as its Chief Technology Officer. Most recently, Ron served as Chief Technology Officer at MathStar in Hillsboro, OR, as well as at Micro Linear in San Jose, CA. He has a B.S. in Electrical Engineering and an M.S. in Computer Science from the University of Utah, and has completed management training programs at the Wharton School of Business.
	David Van Epps – Senior Vice President and General Manager – Broadcast International Networks David has spent over 25 years successfully developing businesses focused in media, communications, and environmental experience. As the CEO and President of ScentAir he used his business vision and entrepreneurial spirit to revolutionize the use of fragrance as an environmental marketing and branding tool. Prior to his tenure with ScentAir, he held a number of executive management positions with Muzak, the world's leading provider of music, messaging, and sound system design utilized to enhance retail environments. He is a frequent speaker on the subject of using the five senses to create dynamic business environments. David is a graduate of Ithaca College where he holds a BS in broadcast communications.

 

For More Information:

Broadcast International, Inc. Attn:  Rob Chipman 7050 Union Park Center, 6th Floor Midvale, UT  84047 800-722-0400 (toll-free) 801-562-2252 (phone) 801-562-1773 (fax) www.brin.com www.codecsys.com

PR Contacts Snapp Conner PR Cheryl Snapp Conner or Jeremy Kartchner cheryl@snappconner.com Jeremy@snappconner.com 7 Election Road, Suite 212 Draper, UT 84020 801-994-9625