ISWI, Victor Chandler Sign Agreement

WEST PATERSON, New Jersey – (PRESS RELEASE) -- Interactive Systems Worldwide Inc. (Nasdaq: ISWI) announced today that its wholly-owned subsidiary, Global Interactive Gaming Limited ("GIG") signed an agreement with Victor Chandler International ("Victor Chandler") the Gibraltar-based operating arm of the Victor Chandler Group, one of the world's leading independent betting and gaming companies with an annual turnover in excess of $1 billion. ISWI's SportXction(TM) play-by-play sports betting system will be incorporated into Victor Chandler's international Internet site, http://www.victorchandler.com , with dual launch alongside http://www.victorchandler.co.uk scheduled for early September.

In this non-exclusive agreement, which will provide GIG with a share of the wagering revenue, GIG will furnish the technology and operate the system, and Victor Chandler will be responsible for an extensive marketing campaign to promote the product, first level customer support and for processing customer financial transactions.

ISWI had previously announced on June 17, 2004 that GIG had signed an agreement to provide the SportXction(TM) wagering system to Victor Chandler UK Limited, the UK operations arm of the Victor Chandler Group. In effect, this second agreement expands the scope of the relationship to make the SportXction(TM) product available to Victor Chandler's international customers, with the exception of residents of the United States.

Barry Mindes, Chairman and CEO of ISWI, stated, "We are very pleased to extend our partnership with Victor Chandler, one of the premier betting companies in the world. They have a vast international customer base and this agreement represents a promising revenue opportunity for both of our companies. We are excited to offer both their UK customers and international customers the most comprehensive in-run betting service available to the public."

Joe Coughlin, Product Development Manager at Victor Chandler, said, "Our international customer base is growing fast, so we are very pleased to have concluded this agreement. The SportXction(TM) System is innovative and will provide our customers with great new opportunities to bet and we look forward to an extensive marketing campaign to support the product in August."

The agreement is for an initial 12-month term and Victor Chandler will make available the SportXction(TM) system for all of the currently available sports of football, cricket, golf, tennis and rugby.