TWST: We would like you to begin with a brief historical sketch of the company and a picture of the things you are doing at the present time.

Mr. Tiede: What we have at Broadcast International, we really are a 27-year-old company that has been involved with doing private satellite networks and Web hosting services for the enterprise customers that we have around the world. And we are doing the service of content creation, content management, broadcasting both via Web and satellite and digital signage as part of that distance learning and applications that we provide here at Broadcast International. In providing those services, we realize that it was becoming very important to us that producing our bandwidth requirement for video transmission was a very important part of our potential success here and so we actually created a new video compression technology that now has been taking on a whole life of its own and this new technology is called CodecSys. CodecSys is a multi-codec video compression system that allows us to compress video content down, utilize alternative codecs rather than a single generalized codec. We use multiple optimized codecs to be able to compress video down to a much smaller bandwidth, allowing us to be more successful in the transmission of our video content.

TWST: Is there any other competing company that has a technology that resembles this?

Mr. Tiede: There is not. Everybody in the world today has been utilizing a single codec for doing video compression. Broadcast International's CodecSys system is the only multi-codec system and it's now patented around the world as well.

TWST: What are the competitive advantages that you have?

Mr. Tiede: What it comes down to is not only is there is a cost saving with the reduction in bandwidth, but also it's an enabling technology that allows us to able to broadcast this content in circumstances where maybe it was not available before. For instance, we deliver high-definition television at 1.5 megabits per second. And then the other thing that's very compelling about Broadcast International technology is that it's software driven and software running on sophisticated platforms like an IBM, for instance, and so it has the ability to be upgraded regularly and improved, versus the traditional path for video compression, which has been utilizing appliances in the hardware for doing video compression and which are not upgradeable. So it's an upgradeable, evergreen technology as well.

TWST: Would you tell us about your customers?

Mr. Tiede: Our customers are Caterpillar Corporation, we also work do for Morgan Stanley and many others like Hollister and SkyRec.

TWST: What are the main opportunities that lie ahead for the company and what are the strategies that you will be employing in pursuit of them?

Mr. Tiede: What we have today is our relationship with IBM and other distributors around the world. We are actually licensing the technology and beginning the sales process to fulfill this product globally. IBM is a great partner for us and we have made other great partners that are coming online as well and allow us to be able to get a global reach utilizing their infrastructure with our technology, and so we see that as being a very successful period for us in the next couple of months.

TWST: What are the challenges over the next few years?

Mr. Tiede: Our outlook right now is very bullish because Broadcast International's technology is not a technology that is going to be hampered by a downturn in the economy or anything like that. The return on investment in this technology is relatively immediate and it really enables broadcasters and IPTV broadcasters to really view things that they never thought they could do for several years out. So as far as where we are headed with this technology, we have very few worries at this time.

TWST: What would you reasonably expect the company to look like in about three years?

Mr. Tiede: In a three-year period, we will have multiple technologies that we will have licensed to many large organizations around the world with a great revenue stream. We would like to be looking at being deployed on probably at that time maybe 20% of all encoders that are being installed in the world today. And so we see our revenue streams with that to be quite significant and we look to be very successful three years out.

TWST: What might be some year-by-year milestones that investors can start to look for?

Mr. Tiede: I think in 2009, what you are going to see here is not only adoption of the technology by other technology companies, but you are also going to see the adoption of this technology by many of the broadcasters. And we believe by 2010 and 2011 you will see the CodecSys video compression technology literally become a new standard in the broadcast industry.

TWST: How much attention are you able to give at this time to R&D?

Mr. Tiede: R&D is still a vital part of what we do here just because the whole process of doing multiple codec video compression has never been done in the world. We have actually filed seven patents on that process in the last two years and it's a very exciting time for us because there is so much discovery that occurs in this whole multi codec process.

TWST: What about mergers and acquisitions? Would that come into the picture?

Mr. Tiede: I am sure it will. We believe once this technology really takes off and we start getting the press that we believe we will get. I am sure there are some mergers and acquisition opportunities on our horizon in the future.

TWST: Would you tell us about your own background and expertise and the same for one or two of your colleagues?

Mr. Tiede: I have been with the company now for 21 years; I started off with sales and marketing and actually became the President and CEO. I have not been involved with technology development so we have brought on a gentleman by the name of Ron Bell who is our Senior Vice President of Engineering in CodecSys. Ron was recently CTO of MathStar Corporation. He was CTO of Unysis Corporation, President of Equator Technologies. So Ron has a significant technology background in creating products and getting them to market and that is why we've brought Ron on to run that process and that engineering group for us because it was something that was new for us here at Broadcast International. And we also have Mr. Jim Solomon who is our Chief Financial Officer, who has been involved with many public companies throughout the last 20 years in making them successful and most of them have been acquired at some point in their life. So we are thrilled to have Jim on board as well.

TWST: How many employees do you have?

Mr. Tiede: We have about 51 employees.

TWST: Do you expect to be increasing that number over the next few years?

Mr. Tiede: We don't. Most of our development is now completed and so we are probably going to see maintaining that level for the next few years or so. We have all of our sales and marketing people in place with all of our support infrastructure, so we don't anticipate to be growing that too much.

TWST: Do you see any need to improve the company's capital structure?

Mr. Tiede: Not at this time. We have the cash that we need to get the product to market and do all of the things that we need. So there has not been any need to be changing that at this time.

TWST: Would you describe your investor base?

Mr. Tiede: We have about 1,200 shareholders. I'm the largest shareholder with 3 million shares. We have 55 million shares fully diluted and outstanding today; there are 38 million shares. And so we have a good group of shareholders, only one institutional investor, and we are looking to grow that possibility of more institutional investors as we mature and go forward this year.

TWST: How much attention are you giving at the present time to investor relations?

Mr. Tiede: I'm spending probably 50% of my time on IR.

TWST: What would be the two or three best reasons for the long-term investor to look closely at Broadcast International?

Mr. Tiede: The main reason to look at Broadcast International right now is that the need for great video compression and reducing the bandwidth requirement for video transmission is by far the most important part of the Internet today and with Broadcast International's pattents and partnerships that it has in that technology, the next two to three years become a real outlook of success for this company. So the next two to three years are going to be very exciting times for us at Broadcast International.

TWST: Is there anything that you would like to add?

Mr. Tiede: I would say the fact that we are very well positioned for the Internet video boom that is taking place, that we have just seen the tip of the iceberg in most recent years, and what's going to happen in the next couple of years as far as Internet transmission of video, we are going to be right there in the middle of it because we have the highest quality video at the lowest bandwidth and we actually are going to enable many of those ideas that people have on the Internet for transporting a video to actually come to fruition.

TWST: Thank you. (MC)

ROD TIEDE CEO Broadcast International, Inc. 7050 Union Park Avenue Suite 600 Salt Lake City, UT 84047 (801) 562-2252 (800) 722-0400 TOLL FREE (801) 562-1773 FAX e-mail: