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IBSG International Announces Implementation of South African Project is Underway; First Businesses Are On-Line

Posted on: Wednesday, 24 May 2006, 09:00 CDT

IBSG International, Inc. (OTCBB:IGII), a holding company for four technology and software subsidiaries, announced today that the first South African businesses to utilize IBSG's economic development trading platform are now online. The recently installed platform is fully operational, and it is projected by the SA government that, over the next three months, a substantial portion of the 100,000 Small-Midsize Enterprises (SMEs) in Johannesburg alone will be operating on the system based on IBSG's BizWorld Pro(TM). The initial focus will be the over-32,000 SME mining vendors. There are an estimated 250,000 registered SMEs in South Africa, which are expected to come on line over the next 6 months. The Company projects that as the project begins to generate substantial monthly revenue, the continued surge of revenue from larger national contracts will be less evident.

Dr. Michael Rivers, CEO of IBSG International, said, "We are very pleased with the progress we have made with the coordinated efforts of our in-country partners, Galaxy Five and IBSD, in getting this system up and running. In getting this job done, we relied on BAE Systems as one of our funding sources, along with the South African Department of Trade and Industry (DTI) and its Industrial Development Corporation (ITC). Because we are engaged in a long-term relationship with BAE Systems (BAE) through our recent purchase of its subcontractor A Division International IT, we will be able to use this as a model for future systems to be created in other developing countries as part of BAE's numerous offset credit projects around the world.

Mr. Jan Heyneke of Galaxy Five stated, "This project was originally intended to serve the Johannesburg region, but at the request of the DTI and ITC, we expanded it to cover the entire Union of South Africa. In doing so, we increased the value of the system and the vendor improvement program to the users and to the entire country of South Africa, boosted potential revenues to both Galaxy Five and IBSG International, and proved the scalability of the system and the vendor program."

Mr. Kevin Gollop, CEO of A-Division IT stated, "Building on this, IBSG International has tentatively scheduled meetings with other foreign governments to discuss establishing similar digital-commerce systems in those markets. We are working with BAE on these projects globally."

About IBSG International, Inc.

IBSG International, Inc. is a holding company for four technology and software subsidiaries: Intelligent Business Systems Group, Inc. (IBSG), a provider of turn-key digital service center software; Secure Blue, Inc., a Sarbanes-Oxley and security software solution provider; Intelligent Business Systems Development (IBSD), a software development, maintenance and data storage company and; A -Division IT, a consultant company focused on development of IT projects for multinational corporations.

IBSG offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., Chambers of Commerce) and Fortune 1000 corporations by licensing its unique turnkey digital service center software, which provides a broad range of digital budgetary, administrative and commercial services (B2B, e-commerce, government to business and enterprise business services) on a single platform known as the BizWorldPro(C).

Secure Blue, Inc. provides a robust economical Sarbanes-Oxley (SOX) compliance and security software suite, Secure Blue SOX Pro. It is targeted at small and mid cap public companies as well as private companies requiring SOX compliance to enable them to continue working with public companies.

As software providers, system integrators and Application Service Providers, IBSG, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBSG/Secure Blue license agreement has a five-year term which is updated on an annual basis and almost invariably renewed upon expiration; to date the company has had only one licensee not renew, due to the expiration of the licensee's contract with another party.

IBSD, Inc. will provide ongoing support of International's other subsidiaries, IBS Group and Secure Blue. The company provides development, system support and secure data storage, and will maintain offices in the US and India, where its current offshore development and support team is located.

A-Division IT establishes it projects for multi-national corporations around the world. The projects are recognized off set program qualified and provide a required contractual obligation of theses corporations.

A-Division IT is the sole IT off set provider to BAE Systems and maintains relationships with various other multi national corporations. A-Division maintains office in the United Kingdom.

Safe Harbor Forward-Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. The above information does not guarantee any successful closing of new business. No assurances can be given that any projections related to gross revenues or profit margins will be realized. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.

Source: Business Wire

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