Fixstars and Broadcast International Form Business Alliance for Video Compression

CodecSys H.264 Encoder for Real-Time HD Video Distribution Will Be Jointly Developed and Sold in a Collaborative Effort

LAS VEGAS--(BUSINESS WIRE)--Cell Broadband Engine™ (Cell/B.E.) solutions provider Fixstars Corporation announced today a business alliance with Broadcast International, Inc. (OTCBB:BCST) for its CodecSys video compression technology.

“We are pleased that two of our partners in the expanding Cell/B.E. ecosystem will be working together closely”

By entering into this alliance, Fixstars will start Japanese domestic sales operations and customer support for CodecSys-based products, and will also start collaborating on the optimization of the CodecSys software “CodecSys HDCP Cell BE H.264 Encoder” for Cell/B.E.

Broadcast International (BI) possesses patents for CodecSys, which is a multi-codec technology designed for real time distribution of HD-quality video. High compression rates and minimal loss in image quality is made possible by selecting the optimal encoder by video scene. BI provides “CodecSys HDCP Cell BE H.264 Encoder” for the Cell/B.E. platform. This encoder enables high- definition live broadcasts or Internet streaming in low-bandwidth environments. Fixstars will work on optimizing the CodecSys HDCP Cell BE H.264 Encoder program to maximize the computational powers harnessed from the Cell/B.E.

According to Fixstars CEO, Satoshi Miki, “Technology such as CodecSys is invaluable for today’s high-definition, high-bandwidth video content. I believe that the integration of BI’s leading edge codec technology with the Cell/B.E. computing power will accelerate the advancement of video technology.”

“The alliance with Fixstars demonstrates the power and adaptability of the CodecSys software,” said Rod Tiede, CEO of Broadcast International. “Fixstars' expertise with the Cell/B.E. processor will be invaluable in optimizing the two technologies to reach unprecedented levels of video compression with HD quality in a live environment.”

"We are pleased that two of our partners in the expanding Cell/B.E. ecosystem will be working together closely," says Dan Greenberg, Offering Manager, IBM Industry Systems Division. "We were already working with Fixstars and Broadcast International individually, but now, through the collaborative efforts of the three companies, we will accelerate the introduction of powerful video compression running on off-the-shelf Cell/B.E. products into the market."

Broadcast International will showcase the CodecSys HDCP Cell BE H.264 Encoder at the NAB Show (National Association of Broadcasters) in Las Vegas, April 14, 2008, and will demonstrate the technology using 720p HD video (booth number: SU14310). Fixstars will be involved in Japanese language briefings and demonstrations at the same booth.

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 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 live streaming video over the Internet and to cell phones, and offers unprecedented price/ performance benefits for existing video applications on IPTV, cable and broadcast networks. As a software-based video compression solution, CodecSys is easily upgradeable, enabling new codecs to be added or changed with a simple software download, while competitive hardware-based products require costly full replacement. For more information, go to www.codecsys.com.

About Fixstars Corporation

Fixstars Corporation provides software technology solutions that target Cell/B.E. with a vision of the future where multi-core microprocessors are the standard. Fixstars provides total Cell/B.E. solutions from hardware acquisition, development environment set up, to software development, especially for financial, medical, and digital media industries. Please see http://www.fixstars.com for more detailed information.

About Cell Broadband Engine™

Cell Broadband Engine™: a microprocessor jointly developed by Sony, Toshiba, and IBM. It is a multi-core chip containing the 64-bit Power processor core and multiple, independent SIMD processor cores. This architecture makes real-time multimedia processing possible, which enables this chip to be used not only in next generation electronics and computer entertainment systems, but also in many other fields such as science and technology simulation systems. Currently PLAYSTATION®3 and the IBM Blade Servers use the Cell/B.E.

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.

IBM is a trademark of International Business Machines Corporation in the United States, other countries or both. Fixstars name and logo are registered trademarks of Fixstars Corporation (including pending applications). “PLAYSTATION” is a registered trademark of Sony Computer Entertainment, Inc. “Cell Broadband Engine” and “Cell/B.E.” are also trademarks of Sony Computer Entertainment, Inc. All other trademarks and registered trademarks belong to their rights holders. Contents may change without prior notice.