IDC Reports First Quarter Results, Showing Increased Revenue of 76% and a Strengthened Balance Sheet.

Business Editors

OTTAWA--(BUSINESS WIRE)--May 31, 2000

International Datacasting Corporation (IDC) (TSE:IDC.) reported its operating results for the first quarter of fiscal 2001 today.

Revenue for the three months ended April 30, 2000 was $3,487,124 up by 76% from $1,976,718 for the corresponding period a year ago. A net loss of $231,331 was realized compared to a net loss of $333,376 in the first three months of 1999. The net loss per common share was $0.01 as compared to a 1999 first quarter loss per common share of $0.02. During this same period, the company improved its cash position through new financing, significantly strengthening its balance sheet.

"This was a good first quarter for the Corporation," said Ron Clifton, President and CEO of IDC. "We are particularly pleased with the significant increase in revenue over the same period last year. The results for the quarter reflect planned expenditures targeted at growing our business. We continue to focus on year-to-year profitability and, with our new financing, are investing for the future by making growth and market share our top priorities. We were ahead of our budget targets for the first quarter. Last year's activities have provided us with a significant backlog and the outlook for the rest of 2000 continues to be strong. Our continued growth is highlighted by another very strong quarter of bookings, with orders received during the period amounting to $6,844,000, compared to $3,828,898 in 1999."

As part of the Company's focus on growth, a 12,000 square foot expansion of the Ottawa facility increased IDC's available space by 50%. The expanded space will house additional manufacturing, system integration and new datacasting service related operations.

The other major event during the quarter was the Corporation's new private placement financing. This placement by a group of US-based institutional investors and a private investor totaled CDN$6.8 million, with the potential for up to another CDN$8.3 million.

Significant orders received during the quarter included:

- An order from Virginia-based Computer Systems & Communications Corp. (CSCC), a wholly owned subsidiary of General Dynamics Corp., for a fully redundant SuperFlex datacasting system.

- An order for more than $500K worth of IDC's state-of-the-art FlexRoute digital audio satellite broadcast system. The FlexRoute equipment will be used to upgrade CBC Radio North's present satellite radio distribution system which is based on analog low level audio subcarriers and band edge SCPC carriers on video transponders.

- A new order from Mexico's Instituto Tecnologico y de Estudios Superiores de Monterrey (ITESM) to provide state-of-the-art education satellite distribution technology to ITESM's Universidad Virtual Empresarial (UVE) Network, a 1000 site business education network in Mexico.

- Samsung placed an order for FlexRoute digital audio equipment and software systems to expand an existing classified satellite network previously announced in February 1999.

- Pursuant to a 15-month contract awarded in November 1999 to provide multimedia datacasting services to Canadian peacekeepers overseas, the Canadian Forces Personnel Support Agency, an integral part of the Department of National Defence, exercised its option to extend the contract through March 2002.

About International Datacasting Corporation

IDC (TSE:IDC) provides advanced systems and services for the broadband satellite distribution of digital data in a variety of point-to-multipoint applications. With an existing base in 35 countries worldwide, IDC is at the forefront of delivering IP-based satellite datacasting solutions. Applications for IDC's products include high-speed Internet-via-satellite networks, corporate Intranets, distance education networks, radio networks, business radio networks, weather networks, financial information and paging networks. IDC is headquartered in Ottawa, Canada, has a US sales office in Atlanta, Georgia and markets internationally through an established network of partners and distributors. Visit IDC on the web at http://www.intldata.ca.