SOURCE: Broadcast International, Inc.

July 28, 2006 09:30 ET

Broadcast International Signs Agreement to Provide Services to The Elevator Channel

BI to Install and Manage Place-Based Media Network in Hotels and Commercial Buildings

SALT LAKE CITY, UT -- (MARKET WIRE) -- July 28, 2006 --Broadcast International (OTCBB: BCST) today announced it has signed a services agreement with The Elevator Channel, Inc. a Charlotte, N.C.-based firm that delivers news and entertainment along with national and local advertising through a network of digital displays located in the elevator cabs and other high traffic areas of hotels, resorts, and residential and commercial towers.

The three-year agreement calls for Broadcast International to provide installation, on-going maintenance, network management, content management/delivery, and video compression services utilizing BI's patented CodecSys technology.

"We are honored to have been selected by the Elevator Channel to play such a critical role in the growth and development of its network," stated Rod Tiede, Broadcast International President and CEO. "We look forward to working with the Elevator Channel's dynamic management team and are extremely confident in the business and technical model they have put together."

"Broadcast International was the one company we found that has the breadth of skills to handle all of the services and support we need; their years of experience in the hotel and commercial office space were also a real plus," remarked Rudy Alexander, President and CEO of the Elevator Channel. "Being able to outsource all of the service and support functions will enable us to build out our network at an accelerated pace to meet market demands without having to make heavy investments in our own infrastructure."

About Broadcast International

Broadcast International is a leading provider of video-powered business solutions, including IP and digital satellite, Internet streaming, and other types of wired/wireless network distribution. In addition, BI assists clients with video production, rich media development and a full range of network support services. BI also possesses a patented technology, CodecSys, which provides enhanced video at current bandwidths or reduces the cost of bandwidth while maintaining quality.

Broadcast International was founded in 1984 and is a public company (OTCBB: BCST) headquartered in Salt Lake City, UT. For more information and to learn more about Broadcast International and CodecSys on the Web go to www.brin.com and www.codecsys.com.

About The Elevator Channel

Founded in 2001, The Elevator Chanel, Inc. (www.elevatorchannel.com) is an advertising, news, information and entertainment media company headquartered in Charlotte, N.C. that reaches consumers through high-resolution, digital displays. The network capabilities of the Company can be deployed inside the elevators of high-rise commercial and residential towers, hotels, resorts and casinos, and also through large, wall-mounted flat panel screens and free standing kiosks. The narrowcast flexibility of the Elevator Channel's medium allows for both broad range exposure and targeted, private networks.

All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control, that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the caption "Additional Factors That May Affect Our Business" in the Company's most recent Form 10-K and 10-Q filings, and amendments thereto. In addition, we operate in a highly competitive and rapidly changing environment, and new risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statement.

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