International Dispensing Corporation Notified Of Patent Approval For BreakThrough Beverage Carafe.

Business Editors

BALTIMORE--(BUSINESS WIRE)--March 1, 2002

The U.S. Patent and Trademark Office has notified International Dispensing Corporation (IDC) (OTCBB:IDND) that it has allowed IDC's utility patent application for its unique beverage carafe- a flexible, disposable packaging design that has been generating growing interest in the multi-billion dollar foodservice, convenience, catering and specialty coffee retail industries. Once issued, the utility patent will provide IDC with U.S. market exclusivity for its bulk beverage packaging concept until 2020.

IDC's bulk beverage carafe package, introduced in June of 2001, opens new markets for companies and retailers that distribute hot, carryout beverages or ready-to-eat soups in bulk quantities. The new bulk beverage carafe allows customers, for the first time, to safely transport multiple cups - 96 fluid ounces - of a hot beverage or ready-to-eat soup "on the go". The package can also be used to distribute carbonated beverages, juices, and stews. The beverage carafe is a response to the need for a more efficient and safe way of transporting large quantities of premium coffee or soup, while retaining product quality.

"The beverage carafe has already proved to be a commercial success here in North America," said IDC President and CEO Gary Allanson, who also invented the carafe. "This utility patent gives IDC an exclusive market position in the packaging industry. We expect sustainable revenue growth from the beverage carafe in both the domestic and international markets. IDC has filed for patent protection worldwide and the U.S. Patent will provide strong protection against reverse engineering or any copying of our packaging technology."

The market for IDC's new flexible package is substantial. According to the Foodservice Packaging Institute, 115 billion disposable cups are manufactured in the U.S. annually. Of that amount, customers use approximately 86 billion disposable cups for carryout beverages. Thirty-six percent of consumers surveyed - which included families, office, construction, police, fire and military personnel, said that they would be willing to purchase 96 ounces of hot coffee in a bulk beverage carafe "as long as the container was safe and kept the beverage hot."

IDC has been selling its carafe to national food service accounts and national grocery and specialty coffee chains across North America. It recently added SYSCO Food Services of Philadelphia to its customer list. IDC also has been approached by a number of leading non-food producers to adopt this packaging concept to their product needs as well.

"This is an important new packaging innovation and a strategic fit for SYSCO's hot beverage program," said Kim Albertus, the company's manager of food services merchandising. "Initial customer response to the beverage carafe has been very positive. SYSCO Philadelphia is always innovating and I am always looking for new packaging ideas and better ways to serve our customers in the Pennsylvania and New Jersey markets. We believe IDC's beverage carafe will help SYSCO and our customers drive incremental beverage and soup sales". On April 23rd and 24th IDC plans to participate in the SYSCO Philadelphia Food & Foodservice Supply Show in Atlantic City, NJ.

IDC also has lined up other major customers, including the University of Pennsylvania's sprawling food services and catering service. City Dock Cafe, based in Annapolis, MD, and Zele Coffee, based in Aspen, CO are among the specialty coffee chains that were early adaptors of the beverage carafe. IDC continues to steadily add new customers across the foodservice, grocery and specialty coffee industries.

"This beverage carafe," Allanson said, "is ideal for a range of customers, especially those foodservice providers and retail operators that depend on carry-out-business. The commitments we're receiving from industry leaders represent an important endorsement of this product and for flexible packaging."

IDC's beverage carafe also addresses health and safety regulations regarding the distribution of beverages that must be prepared and served at temperatures ranging from 160 to 210 degrees Fahrenheit. The carafe keeps its liquid contents hot for up to three hours. It provides an easy way to carry 12 cups of coffee in one container without allowing the contents to spill.

IDC, founded in 1995 and based in Millersville, MD, is a research and development company that develops and manufactures leading edge packaging and aseptic dispensing solutions for the Foodservice Industry.

For more information about International Dispensing and its products please visit the IDC website, www.idcdispensing.com.

Note Regarding Forward Looking Statements

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect IDC's current views about future events. Risks, which may cause actual results to differ materially, may include, but are not limited to: the lack of acceptance of our products by potential customers; our failure to continue to develop our product line or to attract and retain customers; our failure to anticipate and adapt to developing markets and the presence of competition, including potential competitors that are larger than IDC, with greater financial, technical, and marketing resources.