Interactive Systems Files Complaint

Interactive Systems Worldwide Inc. (Nasdaq: ISWI) announced today that it had filed a complaint against defendants Mikohn Gaming Corporation (d/b/a Progressive Gaming International Corporation) and STB Holdings in the U.S. District Court in New Jersey, for infringement of two patents held by the Company (United States Patent Nos. 5,573,244 and 5,842,921). The patents are generally directed to computer-based processing systems and methods which allow continuous betting while a sports event is in progress.

Barry Mindes, Chairman and CEO of ISWI stated, "As the originators of real-time wagering during the course of a sporting event and a pioneer in the interactive wagering market in general, we have invested significant energy and financial resources in developing, marketing and operating our unique SportXction(R) System. While it is unfortunate that we have had to resort to legal action to protect our technology, we intend to re-enter the Nevada market and must take all appropriate steps to defend our intellectual property against misappropriation."