Broadcast International Licenses Vanguard Software Solutions Codec

Agreement Will Make the VSS H.264 Codec the Centerpiece of the IBM/CodecSys Jointly Developed Encoder

SALT LAKE CITY, UT -- Jun 20, 2007 -- Broadcast International (OTC BB:BCST.OB - News) ("BI") and Vanguard Software Solutions ("VSS") today announced that they have entered into a licensing agreement authorizing BI to use the VSS H.264 codec in the new encoding solution currently being developed by the IBM/BI joint development team. As previously announced, the new encoder will feature the combination of BI's CodecSys multi-codec software with IBM's® Cell BE multi-core processor and is scheduled for release 4th quarter 2007. The VSS encoder release 4.0 will be the central video compression format in the IBM/BI encoder, along with several of its complementary versions.

The combined IBM/BI encoder can potentially provide complete encoding and transcoding solutions for worldwide broadcast, cable, satellite, IPTV, telco, wireless and streaming customers as well as applications for business communications, training and digital signage.

"We have enjoyed a long and beneficial partnership with Vanguard Software Solutions," said Rod Tiede, Broadcast International CEO. "VSS has worked closely with us over the years and provided us invaluable support as we furthered the development of our CodecSys multi-codec encoding system. Based on the consistently superior test results for the VSS H.264 Encoder, we have selected the VSS technology to serve as the codec nucleus for our launch of the IBM Cell BE CodecSys multi-codec encoder. As we continue to add codecs to the CodecSys library we are confident that VSS will continue to be our partner in those efforts."

"BI is a recognized leader in sophisticated broadcast solutions and we are pleased to work together with BI and IBM on the leading edge Cell processor," said Irena Terterova, CEO of Vanguard Software Solutions. "We developed our hyperthreading architecture to support high core count systems such as the Cell for professional video encoding purposes."

Heralded for several years as a paradigm shift away from the traditional compression approach using a single, generalist codec, the CodecSys(TM) system utilizes and switches between multiple optimized, expert codecs, each designed for specific video content, such as bright, dark, fast-motion, or slow-motion scenes. On-the-fly switching between codecs enables the highest quality video delivered at the lowest possible bandwidth. Another major benefit of this solution is that new codecs can be incorporated into the system as needed. This capability virtually eliminates the hassle and expense of replacing hardware every time a customer wants to take advantage of a new or upgraded codec.

The Cell BE processor, developed by IBM, Toshiba and Sony Group, is a breakthrough architectural design featuring eight synergistic and programmable processing elements, plus a Power Architecture(TM)-based core. The IBM platform enables unmatched performance levels in many computationally intense applications, including live and on-demand video compression. The Cell processor has peak performance in excess of 200 GFLOPS -- which equates to 200 billion floating-point operations per second, as measured during initial hardware testing.

Now entering their 4th generation, the VSS Codec engines employ unique IP and intensive optimization, to provide OEMs with excellent quality, high performance and high encoding efficiency per CPU cycle. Over 10 years of development have yielded a range of encoding algorithms and software engineering expertise that supports encoding, decoding and transcoding applications, including mobile video, collaboration, professional broadcasting and IPTV.

About Vanguard Software Solutions

Vanguard Software Solutions, Inc. has grown from a research lab to a world-class team of over 40 development engineers. The company provides original equipment manufacturers (OEMs), integrators and platform providers, market-leading solutions for video and audio encoding and decoding solutions. VSS works with OEMs to solve difficult technical challenges requiring in-depth software engineering, integration and porting expertise. For more information about Vanguard Software Solutions, visit www.vsofts.com.

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 (OTC BB:BCST.OB - News) headquartered in Salt Lake City, UT. For more information and to learn more about Broadcast International and CodecSys on the Web go to www.brin.com and www.codecsys.com