ISWI and SkyBet Sign New Agreement

ISWI and SkyBet Sign New Agreement

Goal to Integrate SportXction(R) Into a Seamless Live Betting Solution Across All SkyBet's Delivery Platforms

WEST PATERSON, N.J., Nov. 28 /PRNewswire-FirstCall/ -- Interactive Systems Worldwide Inc. (NASDAQ:ISWI) announced today that its wholly-owned subsidiary, Global Interactive Gaming Limited ("GIG"), and SkyBet (registered company name Hestview Limited) have agreed that it would be desirable to jointly create and offer a fully integrated in-run betting solution across all SkyBet's delivery platforms, including interactive television ("iTV"), Internet and telephone/mobile. As a result, SkyBet and GIG signed an agreement to conduct a feasibility study with the goal of evaluating a completely seamless betting experience for SkyBet's customers. The proposed solution envisions GIG managing certain in-run (i.e. "play-by-play") wagering markets that would be offered along with other more traditional sports wagering markets that are already currently managed by SkyBet. GIG utilizes the SportXction(R) System, developed by ISWI, to manage primarily short-term, play-by-play oriented, betting opportunities ("propositions' or "markets") during a live sporting event.

Bernard Albanese, President of ISWI, commented, "We are thrilled to be afforded with such an exciting opportunity. We have long believed that iTV provides the best delivery platform for our SportXction(R) product. More recently, as a result of additional market research during the past year, we have also recognized that offering the customer the ability to make any kind of wager from the same screen, without having to leave our partners' application, would greatly enhance the player's experience and therefore we expect would generate more traffic in those markets offered and managed by GIG. An integrated product will benefit greatly from SkyBet's current and future marketing and branding programs. We are looking forward to the completion of the study, and potentially the subsequent implementation of this enhanced offering."

Richard Flint, Managing Director of SkyBet, stated, "We are constantly striving to provide our customers with the most exciting and entertaining sports wagering experience possible. We believe the SportXction(R) System is innovative, and by offering unique betting opportunities well beyond those provided by any other system we believe that we can significantly enhance our customers' experience. We look forward to working with GIG on this assessment for a totally seamless service with the goal to improving our offering across all of our delivery platforms."

ISWI previously announced agreements between GIG and SkyBet to conduct a one-year trial of the iTV version of the SportXction(R) System, with either party having the right to terminate that agreement six months after launch. The product, branded "Winplay", was launched on February 23, 2005. In reviewing the results of the trial, both parties have concluded that the overall playing experience would be significantly enhanced if a more integrated solution were provided to SkyBet's customers. This would allow all wagering opportunities for a specific sporting event, regardless of who is performing the risk management, to be commingled on the same screen, making them available simultaneously.

This solution, if agreed, would remove the need for an additional login, a separate e-wallet and would provide a uniform look and feel that is consistent with SkyBet's branding and other service offerings. In addition, all SkyBet's marketing activities aimed at increasing overall utilization will, by default, also drive additional wagering customers to the GIG managed markets.

The agreement calls for a feasibility study, to be initiated within 20 days, in order to evaluate the proposed integrated solution, to estimate the integration costs, to determine the resources required for implementation, as well as to review other aspects of the proposed new service. The feasibility study does not obligate either party to implement the proposed integrated solution... In order to avoid confusion in the marketplace, and to allow for a smooth transition, both parties have agreed that the current stand-alone Winplay product is to be discontinued. The existing trial agreement will be terminated at the conclusion of the feasibility study or January 1, 2006, whichever occurs sooner. If the feasibility study leads to a positive conclusion, it is expected that the trial agreement will be replaced with a new agreement to facilitate the envisioned integrated implementation and operation.

About Interactive Systems Worldwide Inc. ("ISWI")

ISWI, incorporated in 1995, has designed, developed and patented an interactive hardware and proprietary software system, the SportXction(R) System, which enables users to wager at fixed prices during the course of a sporting event, The SportXction(R) System accepts bets not only on the outcome of a sporting event, but also on discrete parts of the event and on specific game situations.

ISWI, through its wholly owned subsidiary, Global Interactive Gaming Limited, operates the SportXction(R) System, in conjunction with established media and traditional wagering partners. GIG, which is located in London England, has concluded agreements for the SportXction(R) System to be operated across several distribution platforms including the Internet, interactive TV and mobile phones. For more information, visit www.isw.com.

About SportXction(R)

SportXction(R) is a patented, real-time, software system, which allows a player to make play-by-play wagers on a sporting event while the event is in progress. Wagering may be conducted while viewing a live or televised sporting event, or listening to it on the radio. The wagers offered are mostly oriented to short-term action, for example, is the penalty kick successful, is the next play a run or a pass, is the next pitch a ball or a strike, does the shooter make two foul shots, and many more. The wagers have odds associated with them, which relate to the probable outcome of the proposition being wagered upon, and the odds are adjusted in real time to balance the pool using proprietary artificial intelligence software to reflect player sentiment, as derived from the betting patterns. The system can be used with virtually any sport.

About SkyBet

SkyBet is the brand name of a betting services company registered in the UK as Hestview Limited, a wholly owned subsidiary of British Sky Broadcasting Limited (BSkyB). BSkyB's satellite TV distribution operation, Sky Digital (launched in October 1998), is the UK's largest supplier of digital TV services, with approximately 7.6 million active households throughout the UK and Ireland. SkyBet is a prominent supplier of betting services to customers of Sky Digital through their interactive applications on digital TV. BSkyB reported revenues of approximately $7.2 billion for the year ended June 30, 2005, of which approximately $470 million related to SkyBet.

This press release contains "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including, but not limited to, whether the feasibility study will uncover technological or other issues with the proposed integration; whether SkyBet and GIG will chose to undertake the proposed integrated project; and whether the proposed integration, when and if launched, will generate significant revenue for ISWI. Investors are cautioned that these statements involve risks and uncertainties and that actual results may be different from those contained in these forward-looking statements. Additional risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission, including but not limited to its Form 10-KSB for the year ended September 30, 2004 and its Forms 10-QSB for the quarters ended December 31, 2004, March 31, 2005 and June 30, 2005.

CONTACTS:
For ISWI: (973) 256-8181 For Investors: (858) 704-5065
Barry Mindes (Chairman) Hayden Communications
bmindes@sportxction.com Matthew Hayden (President)
Bernard Albanese (President) matt@haydenir.combalbanese@sportxction.com

Source: Interactive Systems Worldwide, Inc.

CONTACT: Barry Mindes, Chairman, bmindes@sportxction.com, or Bernard
Albanese, President, balbanese@sportxction.com, both of ISWI, +1-973-256-8181;
or Investors, Matthew Hayden, President of Hayden Communications,
+1-858-704-5065, matt@haydenir.com, for ISWI

Web site: http://www.isw.com/

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