Interactive Systems Worldwide Announces Extension of Agreement With Sportingbet

The original agreement, which specified a revenue share arrangement between the companies, had been amended in May 2007 to provide fixed monthly fees to GIG. Although the original agreement expired on November 1, 2007, both companies continued to operate under its terms while negotiating an extension. The agreement has been extended at least to August 1, 2008, and specifies that GIG's monthly revenue would be determined by the larger of a revenue share percentage and a new minimum monthly guarantee. This combination of revenue share coupled with a minimum monthly guarantee will result in significantly higher monthly fees to GIG than the current agreement. This new financial agreement will be made effective retroactively to February 1, 2008. It is anticipated that the agreement will be renegotiated and extended prior to its expiration, in anticipation of the new professional football (i.e. soccer) season that starts in August 2008.

Corporate Update:

The Company today also announced record quarterly wagering volume from the operation of its SportXction(R) system in the UK. The system operated by GIG, recorded over 4.1 million pounds ($8.2 million) in turnover (i.e. the total amount wagered) during the quarter ended March 31, 2008. This total represents a 140% increase over the comparable period in 2007 of 1.7 million pounds ($3.4 million).

The hold (i.e. the total amount retained by the system after winning wagers are paid) for quarter ended March 31, 2008 rose to 262,000 pounds ($523,000), a quarterly record. This represents a hold percentage of 6.38% of the total amount wagered.

The Company's revenue from its agreements under which it operates its software is based upon a combination of several factors: the turnover, the hold, predetermined fixed or minimum monthly fees and contractual revenue (hold) splits with its partners. Although the Company's revenue for the quarter ended March 31, 2008 is only indirectly related to the turnover and hold numbers announced, the Company is very encouraged by this growth.

Bernard Albanese, the Company's CEO, stated, "We are very pleased with the extended agreement with Sportingbet, which was a direct result of the rapid growth in turnover and hold from the operation of the system. In addition, the extension provides the Company with a much-needed increased level of stable cash flow."

Mr. Albanese added, "Increasing the Company's limited cash resources remains management's top priority. The Company is actively pursuing several possible strategic transactions to resolve its liquidity needs."

About Interactive Systems Worldwide, Inc.

Interactive Systems Worldwide, Inc. (OTC Bulletin Board: ISWI.OB) has designed, developed and patented a proprietary software system, the SportXction System, which enables play-by-play wagering during the course of live sporting events. ISWI, through its wholly owned subsidiary Global Interactive Gaming Ltd. (GIG), operates the SportXction(R) System in the U.K., in conjunction with established media and traditional wagering partners. The system can accept wagers from the Internet, handheld wireless devices, interactive televisions, and standalone kiosks. The system can be used for any live broadcast event.

     Contact:

     Interactive Systems Worldwide, Inc.
     Bernard Albanese
     Chief Executive Officer
     Phone:  973-256-8181

FORWARD-LOOKING STATEMENTS: The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements, including, but not limited to, whether GIG will generate a positive cash flow based on this new agreement; and whether the Company will be successful in solving its liquidity needs. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date thereof. Readers should carefully review the risks described in other documents the Company files from time to time with the Securities and Exchange Commission, including Annual Reports, Quarterly Reports and Current Reports on Form 8-K.

SOURCE Interactive Systems Worldwide, Inc.

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Copyright © 2008, NewsBlaze, Daily News

Tags: ,CPR,STW,SPT,NJ-ISWI-Sportingbet

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