IBIN IBSG International Inc (CE)

IBSG International, Inc., (the �Company�), (OTCBB:IBIN) announced today that it has closed $500,000 financing of common stock and warrants, one segment of its financing. This is part of the Company�s 2007 capitalization strategy discussed during the end of the year conference call. The Company will focus the capital on expansion to meet the demands of new business and increase its cash reserves to secure larger projects such as entire national development for Small to Mid-size Enterprises domestically and abroad. Pursuant to this financing, the Company sold 357,142 shares of common stock together with three-year warrants to purchase 89,285 shares of common stock to an institutional investor. The warrants have an exercise price of $1.75 per share. The Company has agreed to register these shares for resale pursuant to the terms of a customary registration rights agreement. IBSG recently announced its tenth consecutive profitable quarter with gross profits up 48% for the year ended December 31, 2006. Net income reported for the year ending December 31, 2006 was $1.8 million, or a gain of $0.25 per fully diluted share. Deferred revenue increased by $1.5 million to total $3.2 million at the end of 2006 compared to $1.7 million at the end of 2005. The $3.2 million in deferred revenue represents a backlog of future revenue. 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 turnkey 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. IBS Group offers enterprise solutions designed to enhance the operating efficiency and create revenue for State Small Business Development Centers, business associations (e.g., business associations) 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�. 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, IBS Group, Inc. and Secure Blue, Inc. generate revenue from license sales, system modifications, systems support and a percentage of monthly customer fees. The typical IBS Group/Secure Blue license agreement has a five-year term which is updated on an annual basis. IBS Development, 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 various countries around the world and for multinational corporations around the world. A-Division has already introduced and continues to provide demonstrations of the system on a national scale. For multinational corporations, the projects are recognized offset program qualified and provide a required contractual obligation of these corporations. A-Division IT is an offset provider to BAE Systems and maintains relationships with various other multinational corporations. A-Division maintains offices 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.