Interactive Systems Worldwide Inc. (ISWI) News

THE COMPANY ALSO PROVIDES A CORPORATE UPDATE

WEST PATERSON, N.J., Jan. 7 /PRNewswire-FirstCall/ -- Interactive Systems Worldwide Inc. (OTC Bulletin Board: ISWI) today announced its wagering volume for the month of December 2007 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 approximately 1.2 million pounds Sterling ($2.3 million) in turnover (i.e. the total amount wagered) during December 2007. This is in contrast to only 75,000 pounds Sterling ($146,000) in turnover recorded for December 2006, which was the first full month of operation for the Company's integrated version of its SportXction(R) product. The Company is very encouraged by this growth.

Bernard Albanese, the Company's CEO, stated, 'We are very pleased with the wagering volume from our operations in the UK. Sports wagering is somewhat seasonal, and historically December is not usually one of our best months; and yet, the turnover this December equaled the third best month we've ever recorded, immediately following the record setting months of October and November. The magnitude of this increase from last year demonstrates the growth in the appeal of the product and should help us to secure additional business worldwide. We are hopeful that the demonstration of continued interest in the types of wagering offered by this unique system will enable us to position the SportXction(R) product as a 'must have' feature for a significant number of on-line bookmakers.'

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. However, in May 2007 the Company announced that it had reached informal agreement with several of its larger partners to restructure its agreements with them in order for the Company to receive fixed or minimum monthly payments on a temporary basis. Based on these informal agreements, which are still in place, the Company expects to invoice approximately $61,000 for December 2007, including license fees due from its agreement with Hipodromo de Agua Caliente S.A. de C.V ('Caliente').

Sales, Marketing and Development:

The Company continues to market the SportXction(R) Sports Wagering System in those jurisdictions where sports wagering is legal. The Company is in discussions with several domestic and foreign companies in the gaming industry and it is hopeful that it will be able to add additional software licensees and bookmaking partners to the UK service it provides through GIG.

The Company continues software development to add additional features to the SportXction(R) System in order to satisfy the requirements of the Ontario Lottery and Gaming Corporation ('OLG'). In September 2007, the Company announced the receipt of a $175,000 purchase order from OLG to provide software modifications and other services. The Company is currently negotiating a licensing agreement with OLG, which would allow them to conduct a six-month field trial of the modified SportXction(R) product, after its completion, for use in up to two casinos. The Company is optimistic that this field trial will lead to a broader implementation in multiple casinos and other on-site gaming venues throughout Ontario, Canada.

The Company announced in December that it signed an agreement in principle with Neptune Race and Sports Book, Inc. ('Neptune'). This non-binding agreement provides the commercial framework for an anticipated licensing agreement to be negotiated between the two parties for the use of the Company's sports wagering software.

Cash Resources:

Increasing the Company's limited cash resources remains management's top priority. The Company is actively pursuing multiple initiatives. The Company is actively pursuing strategic transactions to resolve its short-term as well as its longer-term liquidity needs. These efforts are in addition to the licensing agreements and other synergistic revenue producing opportunities discussed above.

About Interactive Systems Worldwide, Inc.

Interactive Systems Worldwide, Inc. (OTC Bulletin Board: ISWI) 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.

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, whether the Company will be able to sign additional license or partner agreements, whether the purchase order received from OLG will result in the signing of additional agreements, whether the agreement in principle signed with Neptune will result in a licensing agreement, 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.

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

SOURCE Interactive Systems Worldwide Inc.