International Datacasting Announces Profitable Third Quarter Results.

Business Editors

OTTAWA--(BUSINESS WIRE)--Nov. 27, 2002

International Datacasting Corporation (IDC) (TSX:IDC) reported its financial results for the third quarter of fiscal 2002/2003 today.

IDC President and CEO Ron Clifton commented, "We are very pleased to be posting numbers printed in black ink after two consecutive quarters of losses. We have restructured the company to cut costs moving forward and we are starting to see the effects this quarter. We have been successful in conserving our positive cash situation while continuing to push hard on sales."

    The results are as follows:                                         Nine months ending                           31 October, 2002          31 October, 2001 Revenues                       $11,477,431               $16,201,122 EBITDA                         ($1,798,526)                 $103,667 Net Income (loss)              ($2,635,342)              ($1,033,566) Basic Earnings (loss)  per common share                   ($0.07)                   ($0.03)                                         Three months ending                           31 October, 2002          31 October, 2001 Revenues                        $3,809,275                $6,745,274 EBITDA                            $230,099                 ($103,154) Net Income (loss)                  $38,510                 ($524,003) Basic Earnings (loss)  per common share                      nil                    ($0.02)  

Revenues for the quarter were $3.8 million, down by $2.9 million from the same period last year. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) was a positive $230,099 and Net Income was $38,510 for the quarter compared to an EBITDA of -$103,154 and loss of $524,003 in Net Income for the same period last year.

The company's cash position is $2.2 million at the end of the quarter, an increase of $.8 million from the beginning of this year. Total working capital at the end of the quarter is $4.1 million, down from $6.8 million at the beginning of the year.

Mr. Clifton continued, "These financial results show a significant improvement over our second quarter results. The restructuring we did at the end of that quarter has allowed us to consolidate operations and streamline the company in order to operate more efficiently. Meanwhile, in terms of new orders, the third quarter was an important one for IDC-we booked our first e-cinema system and we won an important telemedicine project in Mexico. The company's strategic focus on applications and our systems integration expertise give us a key advantage over our competition.

"In September we successfully launched new hardware and software products that will lead IDC into the next generation of satellite datacasting. This includes the new SFX and SRA family of satellite router and server appliances, as well as Datacast XD, a sophisticated content distribution software that supercedes IDC's five-year-old EchoNet product. The initial response to these new products has been positive. We have initial orders, and we are looking forward to shipping the first units to customers in coming weeks.

"I'm also pleased to announce that our subsidiary Storm Internet continues to grow and that they have turned a corner on profitability this quarter. Storm increased sales and added revenue to the corporation as a whole. This positions us well as a service and technology leader for the growing number of non-urban broadband connectivity initiatives."

Mr. Clifton concluded, "Demand for IDC products and services remains strong. We are pleased with our results this past quarter but it is still too early to tell if this is the 'light at the end of the tunnel' in terms of the current economic environment. Although we continue to see slippage in projects as customers postpone capital spending, we remain confident that when the market recovers IDC will be ideally positioned. In the meantime, our top priorities are still careful management, conserving cash and staying focused on profitability."

About International Datacasting Corp.:

IDC (TSX: IDC) provides advanced products, systems and services for the implementation of broadband wireless infrastructure networks used to distribute multimedia data. IDC is at the forefront of delivering IP-based wireless datacasting solutions, via both satellite and terrestrial "last-mile" technologies. IDC's products are in demand for high-speed Internet infrastructure, enterprise networks, distance learning, and multimedia content distribution. IDC is a recipient of numerous awards including the prestigious Canada Export Award for Innovation and Technology Achievement. IDC is headquartered in Ottawa, Canada, as are its subsidiaries Storm Internet and CDS Prometheus. IDC has an established international network of partners and distributors and installations in more than 40 countries worldwide. Visit IDC on the web at www.intldata.ca.

This press release contains forward-looking statements that may involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with IDC's growth, the development of the satellite datacasting market, regulatory risks, intellectual property infringement and other factors. IDC assumes no obligation to update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect IDC's financial and business results is included in the public documents IDC files from time to time with Canadian securities regulatory authorities.