Cult Movies Online Completes First Year of Online Broadcasting.

Business/Entertainment Editors

SANTA MARIA, Calif.--(BUSINESS WIRE)--Jan. 2, 2003

International Broadcasting Corporation (OTCBB:IBCS) announced today that its IBC Entertainment Group division has successfully completed its first year of online movie delivery through its wholly owned website Cult Movies Online, the first streaming media website devoted exclusively to presenting rare and hard-to-find full length feature films for immediate viewing on demand via the Internet.

IBCS considered the first year to be the "beta-test" phase to determine market share worldwide with limited promotion and advertising. During this time, Cult Movies Online successfully completed over 1500 paid recurring subscription and pay-per-view transactions. The site also successfully captured over 100,000 opt-in email registrants for its free movies and monthly newsletter, recorded over 350,000 unique visits and received over 900,000 hits in 34 different countries. Cult Movies Online reported a measured increase in viewer market penetration in its 4th quarter in the U.S., Canada, Europe, Japan, Australia and the Pacific Rim.

The Cult Movies Online library has increased to 63 titles available for viewing on demand, with another 15 planned for the first 3 months in 2003.

"We're pleased to announce our first complete year of successful programming and online delivery," stated IBC Entertainment Group VP James Golff.

"Considering the discernable attrition rate of other movie pay sites, we've engaged in an ongoing process of keeping the site streamlined for easy navigation and functionality. Our core group of viewers and fans have been very pleased with our product and our customer service, and we have had a negligible ratio of chargebacks or refunds compared with the industry norm to reflect this," Golff added.

"We now intend on aggressively promoting our revenue model not only through traditional consumer-direct avenues, but through new proprietary ISP and Intranet closed networks that we are developing with other Internet-based companies in 2003," Golff concluded.

IBC Entertainment Group will expand Cult Movies Online to include B to B (business to business) and B to C (business to consumer) web-based advertising and affiliate programs in 2003 as well as state-of-the-art encoding and Digital Rights Management for select titles.

Cult Movies Online was voted "Best New Site" by Horrorfind.com, the #1 genre-specific search engine on the web, and is featured in Microsoft's Windows Media Player Guide. The phrase "On Line, On Demand, On Your PC" is a trademark of International Broadcasting Corporation.

International Broadcasting Corporation is a developmental stage company that endeavors to develop successful publishing, media, and broadcasting related businesses and ventures. The Company is focused on developing and providing online information and entertainment content through three units -- IBC News Network (http://www.ibcnn.com/), IBC Radio (http://www.ibcradio.com/), and IBC Entertainment Group (http://www.cultmoviesonline.com/). The IBC Entertainment Group was launched in August following the acquisition of an on-demand, streaming online movie website called Cult Movies Online.

Statements in this press release other than statements of historical fact are "forward-looking statements." Such statements are subject to certain risks and uncertainties including the demand for the Company's services, litigation, labor market, and other risk factors identified from time to time in the Company's filings with the Securities and Exchange Commission that could cause actual results to differ materially from any forward-looking statements. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.