Broadcast International Inks Deal with IBM for Breakthrough Video Compression Technology

    SALT LAKE CITY, December 12 /CNW/ - 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

    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:

    (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

    Broadcast International is a public company (OTCBB: BCST) headquartered
in Salt Lake City, UT. For more information 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, 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.

For further information:

For further information: Broadcast International Rob Chipman,
801-567-3287 or Snapp Conner PR Cheryl Snapp Conner or
Jeremy Kartchner, 801-994-9625;

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