Broadcast International Extends Agreement to Provide Support for 1,200 Store Satellite Network.

SALT LAKE CITY -- Broadcast International (OTCBB:BCST) ("BI") today announced it has extended its satellite services agreement with a prominent U.S. retailer for an additional year. This marks the third time the client has agreed to a contract extension since the initial agreement was signed in 2003.

Broadcast International will continue to provide video production staff and services, along with satellite network management and technology for the satellite network.

The network reaches managers and associates in over 1,200 stores throughout the United States and is utilized to deliver employee training, product knowledge and other corporate communications.

"We are honored to be able to renew this important client relationship and to continue providing a reliable platform for their distance learning and mission-critical internal communications," said Rod Tiede, President and CEO of Broadcast International. "Contract extensions are the best indication that a customer is pleased with our performance."

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.

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.