Interactive Systems Worldwide Inc. (ISWI) News

ISWI ALSO PROVIDES CORPORATE UPDATE

WEST PATERSON, N.J., July 7 /PRNewswire-FirstCall/ -- Interactive Systems Worldwide, Inc. (OTC Bulletin Board: ISWI.OB) today announced record monthly wagering volume from the operation of its SportXction(R) system in the UK.

The system operated by Global Interactive Gaming Ltd. ('GIG'), the Company's wholly-owned UK subsidiary, recorded 2.0 million pounds Sterling ($4.0 million) in turnover (i.e. the total amount wagered) during June 2008. This total is the largest monthly turnover ever recorded by GIG, and represents a 77% increase over the turnover in June 2007 of 1.1 million pounds Sterling ($2.2 million). The turnover in May 2008 was 1.2 million pounds Sterling ($2.4 million). The Company is very encouraged by this growth.

Another significant milestone was reached in June. The hold (i.e. the total amount retained by the system after winning wagers are paid) for June surpassed 150K pounds Sterling for the first time, reaching 151K pounds Sterling ($302K). This represents a hold percentage of 7.58% of the total amount wagered.

The Company's revenue from its agreements under which it operates its software has historically been based upon several factors: the turnover, the hold and the contractual revenue (hold) split with its partners. Under the Company's current agreement with its largest partner, the Company receives the greater of a fixed monthly payment or a revenue share of the hold. Based on the system's performance in June, the Company's revenue share from this partner will exceed its normal fixed monthly payment.

Corporate Update:

The Company's limited cash resources remain management's top priority. The Company is pleased that in June it completed a small ($50,000) debt financing through the issuance of a promissory note to help it solve its immediate, short-term liquidity issue. The Company is actively pursuing other strategic transactions to try to resolve its longer-term liquidity needs.

The one-year employment contract of Mr. Bernard Albanese, the Company's CEO, which was due to expire on June 30, 2008, has been extended for a three-month period with substantially the same terms. This short-term extension was agreed to in order to allow the Company sufficient time to attempt to resolve its liquidity issues, without burdening the Company with an additional long-term commitment. It should be noted that Mr. Albanese has not been paid since April, although his pay is being accrued as a liability to the Company at a voluntarily reduced rate of $180K per annum.

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.

     Contacts:

     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 the growth in wagering volume will continue, how long the Company's cash resources will be sufficient to satisfy the Company's needs, and whether the Company will be successful in solving its liquidity issues. 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.