Interactive Systems Worldwide Inc. (ISWI) News

ANNOUNCES RECORD QUARTERLY TURNOVER

WEST PATERSON, N.J., July 13 /PRNewswire-FirstCall/ -- Interactive Systems Worldwide, Inc. (Pink Sheets: ISWI) provided the public with a corporate update on a variety of subjects.

Transaction Volumes:

ISWI announced the quarterly transaction volumes (i.e. the 'Turnover' and the 'Hold'), associated with the wagering services provided by Global Interactive Gaming Ltd. ('GIG'), the Company's wholly owned UK subsidiary, for the three month period ended June 30, 2009. The Turnover for this quarter was (GBP)5,365,092. This represents a 23.2% increase over the Turnover for the comparable period last year of (GBP)4,354,811, which included the European Football Championships held in June 2008. It also represents a 16.6% increase over the previous record Turnover of (GBP)4,603,359, achieved during the last quarter ended March 31, 2009. The quarter ended June 30, 2009 represents the second consecutive quarter that the Company has achieved a record Turnover. The Turnover, also called 'Handle', is the sum of the amounts wagered under the GIG's service agreements with business partners for its 'integrated' solution. The Hold for this period was (GBP)278,599. The Hold, also called 'Gross Win', is the amount retained by the business partner after all winning wagers have been paid.

Bernard Albanese, Chief Executive Officer of ISWI, said, 'The Company is extremely pleased that we were able to achieve our second consecutive record breaking performance in the midst of a severe worldwide economic slowdown. This is evidence of a continued strong consumer demand for the type of wagering we provide.'

The Company had previously announced (in August 2008) that it had cessed filing its SEC financial reports for an indeterminate time period due to the Company's lack of financial resources and the anticipated expenses associated with the preparation, independent auditor review and filing of these reports. In January 2009, the Company instituted a program of providing transaction volume on a quarterly basis. The purpose of these disclosures is to provide the investment community with some ability to track the progress of the Company's operations despite the Company being delinquent in its SEC financial reporting.

Also provided are the historical transaction volumes associated with previous quarterly periods commencing with January 2007, which corresponds to the launch of the Company's 'integrated' product into live operation (see table below). This data is also available on GIG's website (www.gigltd.com), by clicking 'Transaction History' on the Press and Contacts page. GIG's website can also be accessed indirectly from the Company's website (www.isw.com). The website Transaction History will be updated with the last quarter's transaction volume, reported today, shortly. All figures are unaudited.

In the 'integrated' solution, GIG's personnel use the SportXction(R) software to manage certain in-run betting opportunities on behalf of its business partners, who then accept related wagers utilizing their own gaming system. The Turnover and Hold figures below are not directly indicative of GIG's revenue because the fees payable to GIG pursuant to the agreements with its business partners may include a combination of both a revenue share and a monthly minimum. The figures below do not include other sources of revenue for GIG or the Company, such as license fees, software charges, etc. Sports wagering is seasonal. Meaningful comparisons can only be made between comparable periods (year-to-year), not consecutive periods. In addition, some major sports events are not held annually, but are only held only every 2 or 4 years.

     GIG Integrated Solution Historical Transaction Volumes

           Quarter Ending    Turnover      Hold    Hold %
                              (GBP)        (GBP)
           March 31, 2007   1,741,370     46,617   2.68%
            June 30, 2007   2,919,954    164,799   5.64%
       September 30, 2007   2,579,414    139,396   5.40%
        December 31, 2007   4,182,782    217,659   5.20%
           March 31, 2008   4,107,835    262,173   6.38%
            June 30, 2008   4,354,811    275,430   6.32%
       September 30, 2008   2,389,830    140,546   5.88%
        December 31, 2008   3,498,132    145,229   4.15%
           March 31, 2009   4,603,369    263,045   5.71%
            June 30, 2009   5,365,092    278,599   5.19%

    Totals since Jan 2007  35,742,580  1,933,494   5.41%

    Note:  All currency figures are in British Pounds Sterling

GIG Office Relocation:

GIG has relocated its corporate offices. This was done as a cost saving measure as part of the Company's program to increase revenues and reduce costs. The new offices are still in London, but in an area where less expensive office rentals are available. The annual cost savings is estimated to be approximately (GBP)75,000.

GIG's new address is as follows:

    Global Interactive Gaming LTD
    4th Floor Suite 21 Linton House
    39-51 Highgate Road
    London NW5 1RS
    United Kingdom

    Telephone: +44 (0)207 428 7764
    Fax:       +44 (0)207 428 7765

Reseller Certifications:

In May 2009, the Company announced the appointment of Gareth Humphreys as the new Business Development Director. Because Mr. Humphreys' past experience included extensive sales of hardware and system software to companies in the gaming industry, the Company has decided to take advantage of that experience and to seek reseller certification from certain hardware providers in order to be able to offer a more competitive complete integrated IT Solution for its customers, where appropriate, and to be able to pursue 'targets of opportunity' that may present themselves from time to time. These reseller opportunities may result from the marketing of the Company's primary product, the SportXction(R) Sports Wagering System, or may present themselves independently of those marketing efforts. Having the ability to resell hardware provides the Company with another possible revenue source, and is consistent with management's goal of increasing revenue and reducing costs.

Thus far, GIG has qualified as authorized resellers in Europe of Sun Microsystems, Dell and IBM products. GIG is also seeking qualification as an authorized reseller in Europe of Hewlett Packard equipment.

About Interactive Systems Worldwide, Inc.

Interactive Systems Worldwide, Inc. (ISWI.PK) 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 and when the Company might be able to provide transaction volumes for future quarters and whether or not the Company will obtain the financing necessary to continue its operations. 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 documents the Company has filed with the Securities and Exchange Commission, including Annual Reports, Quarterly Reports and Current Reports on Form 8-K.

SOURCE Interactive Systems Worldwide, Inc.