Interactive Systems Worldwide Inc. (ISWI) News

Breaks October's Record By 26%

WEST PATERSON, N.J., Feb. 6 /PRNewswire-FirstCall/ -- Interactive Systems Worldwide, Inc. (OTC Bulletin Board: ISWI) 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 over pounds Sterling 1.9 million ($3.8 million) in turnover (i.e. the total amount wagered) during January 2008. This total is the largest monthly turnover ever recorded by GIG, and represents a 26% increase over the previous record of pounds 1.5 million ($3.1 million) in turnover recorded three months ago for October 2007. The January 2008 turnover represents a 260% increase over the turnover in January 2007 of pounds 533,000 ($1.0 million). The Company is very encouraged by this growth.

Other significant milestones were reached in January. The hold (i.e. the total amount retained by the system after winning wagers are paid) for January surpassed pounds 100K for the first time, reaching pounds 131K ($261K). This represents a hold percentage of 6.82% of the total amount wagered. Another milestone reached is that, since its launch in December 2006, over 1 million wagers have been accepted on the wagering markets managed by the integrated version of the SportXction(R) System.

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. These agreements are still in place.

Cash Resources:

Increasing the Company's limited cash resources remains management's top priority. The Company is pleased that in January it completed a small debt financing through the issuance of promissory notes to a small number of current shareholders to help it solve its immediate, short-term liquidity issue. The Company is also actively pursuing other strategic transactions to resolve its longer-term liquidity needs.

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.

     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.