SOURCE: IVI Communications, Inc.

August 21, 2007 09:00 ET

IVI Communications, Inc. Reduces Debt by 37% or $2.2 Million

IVI's Wireless Network Delivers Broadband Internet Services to Customers in Rural Arkansas

EUREKA, CA--(Marketwire - August 21, 2007) - IVI Communications, Inc. (OTCBB: IVCM) (FRANKFURT: A0DNWJ) is pleased to announce that IVI Communications' debt has been reduced by 37% or over $2.2 million. Total liabilities for the quarter ending June 30, 2007 were $3,820,771 as compared to $6,086,749 for the quarter ending June 30, 2006.

"This accomplishment is a result of our diligent efforts to strengthen the Company's financials in preparation for receipt of additional funding to continue the implementation of its business plan to deploy WiMAX fixed wireless networks to serve the 19 million rural households nationwide that do not have broadband Internet access," stated Charles Roodenburg, CEO of IVI.

An IVI subsidiary, Futura, Inc. ("Futura"), has completed the installation of a wireless link between Little Rock and three wireless broadband tower sites, serving Cabot (population 15,000), Ward (population 2,580) and surrounding areas. Futura has plans in place to expand its wireless broadband network to cover 53,000 households located in central Arkansas between Little Rock and West Memphis.

"The need for wireless broadband Internet access is really heating up," said Francis Allen, President of Futura. "We were recently informed that our national network aggregator has lost its dialup service in Brinkley, AR. This was a number provided on the QWEST network that has been slated for decommissioning for over a year," he added.

There is a nationwide trend among the ILECs (the companies that provide local telephone service) toward "rural telecom redlining." They are abandoning "low-value" landline customers and focusing instead on building broadband networks targeted at homes and businesses in big cities and affluent suburbs.

"This trend just strengthens our business model," Mr. Roodenburg stated. He added, "It is further proof of the fact that telco and cable solutions are prohibitively expensive solutions for rural areas."

About IVI Communications, Inc.:

IVI Communications has successfully deployed fixed wireless networks throughout the southeastern United States. Futura, Inc. is in the initial stages of deploying a fixed wireless network in areas surrounding Little Rock, Arkansas with plans in place to complete a statewide network. IVI plans to deploy Lickity-Split(SM) fixed wireless broadband Internet access and offer broadband services such as VoIP telephony and Internet-based entertainment services to rural towns across America.

Safe Harbor

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions.

Contact Information

    IVI Communications, Inc.
    Investor Relations Tel: (707) 444-6617