Broadcast International Links up with China's Sun New Media

Filed in archive Agreement on September 6, 2006

Broadcast International Inc. ("Broadcast") a leading provider of satellite and Internet enterprise multimedia networks, recently announced that it has entered into a non-exclusive, license agreement with Sun Media Investment Holdings Limited ("SMIH"), the leading, privately held media company in China, for the distribution of its patented CodecSys technology.

According to the terms of the agreement, SMIH is authorized to incorporate CodecSys in its electronic products and services for which it will pay royalties to Broadcast based on the number of electronic devices receiving video transmissions. The electronic devices include IPTV, cable and satellite set-top boxes, cellular telephones, personal computers, and other similar appliances.

Since China claims over 370 million TV sets and at least 1.2 billion TV viewers, Broadcast International and Sun Media are optimistic about the many possible applications. " Sun Media Investments is a key partner for the roll-out of our technology to the huge growing Chinese market," cited Rod Tiede, CEO and President of BI.

With key investment in media, which includes, television, publishing, and financial news to name but a few, Sun Media Investment Holdings Ltd is a central and logical partner for BI.

"This is our first entry into the China market but we believe that we have chosen the right person in Dr. Bruno Wu " acknowledged Rod Tiede, BI's CEO and President. Tiede in a telephone interview with CVN, quickly revealed that he has known Wu for over a year before the signing of their deal. "Wu is an American citizen who understands China very well," added Tiede.

BI understands the B2B model and quickly recognizes Sun New Media's and especially Wu's excellent reputation and important connections. BI, a Utah based company is optimistic about its growth in the sometimes volatile Chinese communications industry. In regards to the issues surrounding intellectual property protection, BI expresses confidence that its newest board member, Bruno Wu, will look after their overall technology interests.

The deal breaks down as follows: Broadcast entered into a stock exchange agreement with Sun Media Investment Holdings Ltd. ("SMIH"), the leading, privately held media company in China, in which Broadcast exchanged 3,000,000 (restricted) shares of its common stock for 1,515,544 (restricted) shares of common stock of Sun New Media Inc., one of SMIH's equity holdings. Sun New Media is China's leading multi-media powered marketing and channel management company building e-enabled distribution systems, transaction platforms and business communities in China's fastest growing verticals. This transaction makes SMIH the single largest shareholder in Broadcast.

Dr. Wu has been at the forefront of media entrepreneurs for several years in Asia. He founded and is chairman of the leading, privately held media company in China, Sun Media Investment Holdings Ltd. He also served as co-chairman of the world's largest Chinese Internet media company, sina Corporation. Prior to this, Dr. Wu served as chief operating officer of ATV, one of the two Hong Kong free-to-air networks.

The synergy between BI's technology portfolio, which includes its ability to integrate broadband delivery technologies, such as satellite, Internet streaming and WI-FI meshes seamlessly with Sun New Media's flagship investments in such key companies as Asia Multi-Media Technology Services Holdings Limited, Beijing Trans Global Logistics (offering a digital marketing platform for online sales) and the e-publishing rights from Sun Business Network and also the company's recent acquisition of Credit Network 114, the largest business credit database in China.