Broadcast International Breaks Bandwidth Barrier with First-Ever Demo of Live, HD Video Encoding at 3 Mbps at NAB

SALT LAKE CITY--(BUSINESS WIRE)--Broadcast International (OTCBB: BCST) (“BI”) today announced it will demonstrate live HD video encoding under 3 Mbps at the National Association of Broadcasters (NAB) conference in Las Vegas next week. The demonstration at the Broadcast International booth (# SU 14310) marks the first time in the broadcast industry video will be encoded from a live camera feed at this rate of video compression.

Until now, most HD video has been transmitted at the MPEG 2 standard of 19.4 Mbps. By compressing video to under 3Mbps, Broadcast International enables video providers to reduce their bandwidth needs by more than 80 percent for HD quality and pack more video into less bandwidth. Conservation of limited bandwidth resources has become a critical requirement in the broadcast, cable, satellite, mobile and IPTV markets, especially as bandwidth-intensive, high-definition video becomes the industry standard.

“The ability to squeeze more video onto less bandwidth is the number one priority in the industry,” said Rod Tiede, CEO of Broadcast International. “Even a 20 percent reduction in bandwidth is seen as a breakthrough. Our demonstrations shatter the bandwidth barrier completely, offering unprecedented compression and transcoding in both live and real-time environments. That’s the industry’s holy grail.”

Broadcast International will also demonstrate real-time video encoding and transcoding, translating video from one format to another, in IBM booth # SU 3614 where its CodecSys video compression software will be integrated with the IBM Media Hub Solution Framework, IBM's services oriented architecture (SOA)-based solution for the media and entertainment industry that is designed to manage the increasing complexity of running a content-focused business from the point of creation to the distribution of digital content. In this demonstration, which emulates a production broadcast environment, a variety of content, from live sportscasts to archived footage, will be encoded and transcoded in real-time for delivery over multiple modes of distribution to cellphones, laptops, and large-screen format HDTVs.

The real-time transcoding is necessary to deal with the complexity caused by the scores of file formats, bit rates, screen resolutions, and audio and video codecs involved in the video distribution process. A single piece of video, for example, may need to be transcoded dozens of times for the mobile and Internet distribution channels alone. Capabilities such as real-time transcoding are critical if video content is to become ubiquitous across all media delivery platforms.

IBM’s Cell multi-core processor accelerates video compression and transcoding

The NAB demonstrations utilize Broadcast International’s patented CodecSys video compression software running on the IBM BladeCenter® QS21 server. In December 2007, Broadcast International announced a license agreement with IBM. The agreement covers Broadcast International’s CodecSys video compression software running on the Cell Broadband Engine™ (Cell/B.E.) multi-core processor and the IBM BladeCenter® 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.

“We are constantly striving to provide innovative solutions to our customers,” said Jim Comfort, vice president, IBM Systems and Technology Group. “The IBM BladeCenter QS21, based on the multi-core Cell Broadband Engine processor, is designed to yield quicker application results, enabling organizations to get information faster in order to facilitate important business decisions. In combination with Broadcast International’s CodecSys software, this game-changing technology solution will have a profound impact on the video distribution industry.”

“This combination of the incredibly powerful Cell Broadband Engine, IBM BladeCenter QS21 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.

Unmatched video compression

CodecSys utilizes a patented, multi-codec approach in which a video stream is analyzed and the codec best-suited for a particular frame or video sequence is automatically selected from an entire library of specialized codecs.

These specialist codecs are designed to handle particular types of high-bandwidth video frames or streams, such as fast-motion sequences in a basketball game or explosions in an action movie. These types of video are extremely bandwidth-intensive and pose chokepoints to generalist codecs. By selecting the best expert codec for the job, CodecSys is able to eliminate these chokepoints and offer performance several times higher than competitive products based on general-purpose codecs.

The Cell/B.E. processor accelerates the CodecSys compression and codec-switching process, providing a platform for nearly unlimited processing power and video compression capabilities. The combined technologies deliver live HDTV at compression levels four to six times higher than is currently possible.

A “future-proof” solution

One of the key benefits of the CodecSys software approach is CodecSys-based encoders can be easily changed as standards and requirements evolve. With CodecSys, codecs can be upgraded and added through simple, cost-effective software downloads. Other commercial solutions based on embedded systems require costly, full replacement. The underlying IBM multi-core hardware platform is also highly programmable and scalable, enabling users to add additional processing power by simply adding extra processors.

This upgradeable, “future-proof” approach eliminates the need for the costly replacement cycles required with encoders based on tightly-coupled hardware/software architectures.

“Right now,” said Tiede, “there are literally billions of dollars in video compression infrastructure that will have to be thrown away when new standards like h.264 are adopted. You don’t have to throw out your computer every time Microsoft launches a new version of software. Why should you have to throw away a $50,000 piece of equipment like an encoder? It just doesn’t make sense.”

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 video.

Broadcast International is a public company (OTCBB: BCST) headquartered in Salt Lake City, UT. For more information go to www.brin.com and www.codecsys.com.

For more information on the bandwidth crisis caused by the video revolution, go to www.bandwidthcrisis.com.

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.