International Datacasting Corporation
TSX : IDC

International Datacasting Corporation

January 10, 2008 17:01 ET

International Datacasting Corporation Enters Into Letter of Intent for Next Generation Products Order Valued at $3.6 Million USD

OTTAWA, CANADA--(Marketwire - Jan. 10, 2008) - International Datacasting Corporation, (TSX:IDC), announced today that it has signed a Letter of Intent (LOI) with an existing customer for the supply of a new generation of satellite receivers for the upgrade and expansion of an international broadband data delivery network. The LOI authorizes IDC to proceed with manufacturing and, subject to final acceptance testing, to begin deliveries starting early in 2008. The LOI provides IDC with a minimum commitment of $3.6 million USD and has an expected total gross value of up to approximately $6.2M USD. For competitive and confidentiality reasons, the customer is not being named at this time.

The principal product to be supplied under the LOI represents an expansion of IDC's family of SuperFlex DVB-IP satellite receivers that features higher speed throughput of data, includes built-in conditional access/decryption and is capable of operating on multiple DVB-S and DVB-S2 satellite carriers. The product also features a new higher power processor to accommodate the addition of a customer-specific implementation of received data post processing.

"We are very pleased to have entered into this LOI," said Ron Clifton, President and CEO of IDC. "Our ongoing R&D investment continues to provide us with a significant competitive advantage in providing what we believe are the industry's most leading-edge technology solutions for secure multimedia content delivery over satellite. Our ability to anticipate and meet the evolving needs of our customers is key to our strategic objective of being the preferred supplier of broadband IP multicasting systems for a broad range of applications. We are also pleased with the timing of this LOI as it adds significantly to our order backlog going into the new year."

IDC's SuperFlex product line is a family of advanced DVB-IP products that are used to implement complete end-to-end broadband networks for the distribution of multimedia content over commercially available satellites. As one of the pioneers in the industry, IDC was one of the first to use the open standard features of Digital Video Broadcast for Satellite (DVB-S) for the secure point-to-multipoint Internet Protocol (IP) multicasting of file based and streaming content. The SuperFlex product line is compliant with the latest DVB-S2 standard which is quickly becoming the industry standard of choice due to significant bandwidth savings which are accomplished through a combination of higher order modulation schemes (e.g. 8PSK and 16APSK), improved forward error correction and increased spectral efficiency. IDC's DVB-S2 products enable service providers to reduce operating cost via bandwidth savings, or increased throughput, of up to 30% over legacy DVB-S operation - and even higher, when combined with other application-level multimedia compression upgrades such as MPEG 4 AVC for HDTV. IDC's SuperFlex technology is being used around the world in advanced systems for digital cinema, IPTV, television and radio broadcast networks as well as enterprise data and financial news distribution networks.

About International Datacasting Corporation (IDC):

International Datacasting Corporation, (TSX:IDC) is a global leader in providing advanced solutions for the distribution of broadband content via satellite. IDC is at the forefront of delivering IP-based datacasting solutions via satellite and content distribution technologies with installations in more than 100 countries worldwide. IDC's products are in demand for radio and television broadcast networks, distance learning, digital signage, digital cinema, IPTV distribution and other content distribution applications. IDC is headquartered in Ottawa, Canada, operates in Europe through its wholly owned subsidiary PROFline B.V. in Arnhem, the Netherlands and has an established international network of value-added partners and distributors.

This press release contains forward-looking statements that may involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with IDC's growth, the development of the satellite datacasting market, regulatory risks, intellectual property infringement and other factors. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect IDC's financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities.

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