IBSG International Announces Eighth Consecutive Profitable Quarter; Sales Revenues Rise 223%; IBSG International Will Host a Conference Call Tomorrow 11:00 A.M. Eastern.

CELEBRATION, Fla. -- Fifth graph, second sentence of release should read: With weighted average number of shares of 67,207,138 million basic and diluted shares outstanding, earnings per share this quarter was $0.01. (sted With weighted average number of shares of 67,207,138 million basic and diluted shares outstanding, earnings per share this quarter was $0.00.)

The corrected release reads:

IBSG INTERNATIONAL ANNOUNCES EIGHTH CONSECUTIVE PROFITABLE QUARTER; SALES REVENUES RISE 223%; IBSG INTERNATIONAL WILL HOST A CONFERENCE CALL TOMORROW 11:00 A.M. EASTERN

IBSG International, Inc. (OTCBB:IGII) a holding company for four technology and software subsidiaries, announced today its financial results for the second quarter and first half of 2006. Revenues for the three months ended June 30, 2006 rose to just under $2.9 million compared to revenues same three month period ended June 2005 of $1.3 million, an increase of 223%.

Operating expenses for the second quarter of 2006 were $1.2 million, up $263,000 from $937,000 in the same period in the prior year. This reflects an increase in professional services expenses of $160,000 due to the contract obtained in South Africa, and it reflects an increase in salary of $94,000, due to the staff located in India as well as staffing the Company with the needed employees. Consequently, the Company had an operating profit for the three months ended June 30, 2006 of $1.6 million, up six times the operating profit of $256,000 for the three months ended June 30, 2005. The majority of revenues were from the Company's international projects.

The Company had other expenses of $678,000 for the three months ended June 30, 2006 compared to $180,000 for the three months ended June 30, 2005. For second quarter of 2006, the entire $678,000 was for tax provision, while in the second quarter of 2005, the interest and expenses were offset by changes in fair value of embedded options and warrants, which no longer pertain.

For the six months ended June 30, 2006, revenues were slightly above $5.0 million compared to the result for six months ended June 30, 2005 of $2.4 million. Operating expenses rose to $2.1 million for the six months ended June 30, 2006 from $1.8 million for the six months ended June 30, 2005. Other expenses rose to $1.8 million in first half of 2006 from $148,000 other net income in first half of 2005. The increase of other expenses for the first half of 2006 was due to the settlement of the debt and warrants outstanding and the sale of an asset and a provision for taxes (as reported in Q 1 2006 filing). Net income for the six months ended June 30, 2006 reached $1.1 million, or $0.02 per fully diluted share. For the six months ended June 30, 2005, net income was $586,000, or $0.01 per fully diluted share.

Net income for the second quarter of 2006 reached $941,000, more than double the $436,000 generated in second quarter of 2005. With weighted average number of shares of 67,207,138 million basic and diluted shares outstanding, earnings per share this quarter was $0.01. In 2005's second quarter, with 49.2 million diluted shares outstanding, earnings per share came in at $0.01.

Dr. Michael Rivers, CEO of IGII stated, "The foundation we have built over the last couple of years has started to show results. We have been profitable for eight consecutive quarters, and the focus now is on continuing to implement the strategic plan that has brought us this far."

In the second quarter of 2006 the Company's subsidiary IBS Group's COO, Alan Shafer announced, "Alabama became the first of the states affected by Hurricane Katrina to sign a formal agreement with IBSG under the Revitalization Plan, and is expected to generate $6.9 million in revenues to be shared between the Alabama SBDC and IBSG over the life of the five-year agreement. Although no assurances can be given, management anticipates that during the first 12 months of operation, shared revenues based on a percentage of the estimated 86,000 businesses, according to the state of Alabama's statistics, is expected to exceed $700,000. We believe other states, including additional Katrina states, will sign similar agreements in the next 3-6 months."

Kevin Gollop, Managing Director of the company's subsidiary, A-Division IT Systems, stated, "Our South African initiative is being implemented; the recently installed platform is fully operational, and it is projected by the SA government that a substantial portion of the 100,000 Small-Midsize Enterprises (SMEs) in Johannesburg alone will be operating on the system based on IBSG's BizWorld Pro(TM). The initial focus will be the over-32,000 SME mining vendors. There are an estimated 250,000 registered SMEs in South Africa, which are expected to come on line before the year's end."

Management of IBSG International will host a conference call on Wednesday, August 16, 2006 at 11 a.m. EDT to discuss the company's financial results and achievements. Those who wish to participate in the conference call may telephone [phone], from the U.S. and 973-935-2100 for international callers, PIN # 7744722 approximately 15 minutes before the call. A digital replay will be available by telephone for two weeks and may be accessed by dialing 877-519-4471, from the U.S., or 973-341-3080, for international callers, and entering PIN # 7744722.

About IBSG International, Inc.

IBSG International, Inc. is a holding company for four technology and software subsidiaries: Intelligent Business Systems Group, Inc. (IBSG), a provider of turnkey digital service center software; Secure Blue, Inc., a Sarbanes-Oxley and security software solution provider; Intelligent Business Systems Development (IBSD), a software development, maintenance and data storage company; and A-Division IT, a consultant company focused on development of IT projects for multinational corporations.

IBSG offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., Chambers of Commerce) and Fortune 1000 corporations by licensing its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the BizWorldPro(C).

Secure Blue, Inc. provides a robust economical Sarbanes-Oxley (SOX) compliance and security software suite, Secure Blue SOX Pro. It is targeted at small- and mid-cap public companies as well as private companies requiring SOX compliance to enable them to continue working with public companies.

As software providers, system integrators and Application Service Providers, IBSG, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBSG/Secure Blue license agreement has a five-year term which is updated on an annual basis and almost invariably renewed upon expiration; to date the company has had only one licensee not renew, due to the expiration of the licensee's contract with another party.

IBSG, Inc. will provide ongoing support of International's other subsidiaries, IBS Group and Secure Blue. The company provides development, system support and secure data storage, and will maintain offices in the US and India, where its current offshore development and support team is located.

A-Division IT establishes it projects for multi-national corporations around the world. The projects are recognized off set program qualified and provide a required contractual obligation of theses corporations.

A-Division IT is the sole IT offset provider to BAE Systems and maintains relationships with various other multinational corporations. A-Division maintains office in the United Kingdom.

Safe Harbor Forward-Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.