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Integrated Information Systems Provides Managed Services for Interactive Television Offering.

Business Editors

TEMPE, Ariz.--(BUSINESS WIRE)--Dec. 6, 2001

Children's Program First to Showcase the Latest in Interactive

Television for Viewers

Integrated Information Systems, Inc. ("IIS") (Nasdaq:IISX), an innovative technology and business consultancy, and EmpacTV, Inc., the creator of a revolutionary interactive solution that provides users with direct point and click access to product information within televised programs, video tapes, commercials, infomercials, DVDs and other media, today announced that the nationally syndicated children's program, "Critter Gitters", airing Dec. 8, 2001, is the first of many programs which will utilize the EmpacTV solution for interactive learning and purchasing information for products.

This innovative technology offering enables viewers with convergent hardware (such as WebTV or AOLTV) to highlight and select any item showing on their television screen and instantly receive educational information or purchasing instructions, without interrupting the TV program. In the near term, the EmpacTV system will enable instant purchasing ability directly with the vendor marketing the product.

Forrester Research estimates that by the year 2004, interactive television will replace $18 billion of traditional TV advertising revenues with $24 billion in interactive-based revenues. EmpacTV's patent-pending technology is at the forefront of the emerging interactive television trend. EmpacTV has engaged Integrated Information Systems to complete the next phase of the solution by year-end 2001, which will expand the offering to include full business-to-viewer (B2V) eCommerce functionality, with a shopping cart and highly secure credit card transaction capabilities. Viewers will be able to immediately purchase products shown on an EmpacTV-enhanced program without having to separately access the Internet and search for the merchant and product. A new sales avenue has been created for merchants to promote and sell products directly through television, beyond traditional TV advertising.

IIS Application Outsourcing Services is providing the application management for the EmpacTV solution, including hosting and ongoing technical support, at IIS' Tempe, Arizona facility. By partnering with IIS, EmpacTV is capitalizing on the proprietary "high availability" network architecture of IIS' Internet data center to meet top vendor and consumer expectations of reliability, throughput, security, and accessibility as required by EmpacTV.

"Interactive television is destined to change the way advertisers market to their customers and the way customers seek information and purchase products. The `Critter Gitters' children's program and `Michael Holigan's Your New House' are early adopters of EmpacTV's enhanced interactive programming, which is a differentiator for each of these programs in today's competitive television markets," said Stephen Ward, President and Chief Technology Officer of EmpacTV. "We are pleased to have found a locally headquartered partner in IIS that can fully meet our outsourcing needs and scale with us as we grow. IIS' application development expertise is also critical for us as we progress with the full-scale rollout of EmpacTV."

"We are excited to be on the forefront of offering interactive television to our viewing audience," said Sid Yost, who stars as Ranger Kelly on "Critter Gitters", now in its fifth season. "The launch of EmpacTV through IIS opens a new channel of interactivity and an educational opportunity for our viewers."

"Enabling new and innovative technologies such as EmpacTV is a core IIS strength," noted Jim Garvey, Chairman, Chief Executive Officer and President of IIS. "We are enthusiastically working with EmpacTV on this interactive television technology. IIS is committed to providing media programmers, product manufacturers, merchants and viewers this new service as we and EmpacTV extend this offering to the communications market."

About EmpacTV

EmpacTV is a post-production solution that enables real time viewers to interact with any viewable or non-viewable content. The patent-pending technology maps content within a show, allowing users to simply click on the objects they like and place them in a shopping cart for future reference or purchase without any interruption to the current programming. EmpacTV does not require broadband technology, but rather utilizes the industry standard ATVEF Triggers (Advanced Television Enhancement Form). EmpacTV is a closely held, private technology company located in Mesa, Arizona.

About IIS

Integrated Information Systems(TM) is an innovative technology and business consultancy providing extensive experience and insight to create a sustainable competitive edge for clients. For companies who seek measurable results from business and technology investments, IIS offers cost-conscious, productive, profit-minded solutions across the entire service value chain with single provider accountability.

Founded in 1988, IIS employs approximately 350 professionals in offices in Atlanta; Bangalore, India; Boston; Denver; Jacksonville; London, England; Los Angeles; New York City; Phoenix; and Portland, Oregon. Integrated Information Systems stock is traded on the NASDAQ exchange under IISX.

For more information, please visit the IIS web site at

Cautionary Statement

This news release contains forward-looking statements about IIS, including statements concerning the commercial success and acceptance of the EmpacTV solution and IIS' ability to market these services to others. These forward-looking statements involve a number of risks and uncertainties which could cause actual events to differ materially from those indicated by such forward-looking statements and cause the company's stock price to decline. Such factors include, without limitation, lower than expected demand for the company's services and the EmpacTV solution, reductions in pricing for the company's services and products, possible technical or other difficulties with the EmpacTV technology or services provided by IIS, the ability of customers to pay their invoices when due, the incurrence of unexpected expenses, the expected impact of, and the ability of the company to execute its business plan, the ability of the company to obtain new clients and retain existing clients, the company's ability to effectively utilize its personnel, the company's ability to attract client relationships and key senior professionals from competitors or to profitably integrate these professionals or operations into IIS' business and operations, the potential loss of major client projects, the competitive environment in which the company operates, the continued acceptance of the company's services, the ability of the company to manage its projects effectively and the ability of the company to stay at the forefront of technological changes. Other factors are identified in documents filed by IIS with the Securities and Exchange Commission and in other public statements, including those set forth under the caption "Risk Factors" in the company's Form 10-K for the year ended December 31, 2000, and in its Form 10-Q for the quarter ended September 30, 2001. All forward-looking statements included in this document are made as of the date hereof, based on information available to IIS on the date hereof, and IIS assumes no obligation to update any forward-looking statements.
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Publication:Business Wire
Date:Dec 6, 2001
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