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International Datacasting to Sell Storm Internet Subsidiary Deal Valued at up to $3.7 Million

OTTAWA, ON, August 1, 2003 - International Datacasting (TSX:IDC) announced today that it has entered into an agreement to sell its wholly-owned ISP subsidiary Storm Internet Services to 4177347 Canada Incorporated.

The transaction, which will be in the form of a share purchase, is expected to close by 28 August, 2003, subject to the satisfaction of customary conditions including the receipt of any necessary regulatory approvals. The value to IDC in cash and other considerations is between $3.2 and $3.7 million, depending on the amount of post-closing cash royalty obligations payable to IDC. This transaction covers Storm Internet and its wholly-owned subsidiary CDS Prometheus. The remainder of IDC’s service business (a satellite teleport which services among others the Canadian Forces Radio and Television network) is not affected by the sale.

IDC acquired Storm, a regional ISP, and CDS, a wireless systems integrator, in 1999. Since then the business has expanded and grown—today Storm has one of the largest broadband wireless networks in North America.

IDC President and CEO Ron Clifton said, “This is a win-win deal for everyone. We originally acquired Storm to add to our product and service portfolio and we are pleased with what we have been able to accomplish with them in the last few years. This deal will allow Storm to focus on their core ISP business and will free them up to grow in that market space. At the same time this will free up working capital for IDC so that we can focus on the core broadband satellite network business. We are at a crossroads with the new products we have launched in the past year. They have generated a lot of excitement and we are starting to see important new orders. The proceeds from this deal will help fuel our growth going forward.

“We expect to continue to work together with Storm on strategic opportunities, such as the Canadian Broadband Initiative, building on the excellent working relationship that we have developed over the past few years.”

4177347 Canada Incorporated is a company formed by a group of private strategic investors. Barry Williams, CEO and a director of Storm is one of the principals of 4177347. As such, the transaction is a related party transaction for the purposes of Ontario Securities Commission Rule 61-501. IDC will take all necessary steps to ensure that the transaction complies with this Rule.

About Storm:
Storm Internet (Storm), a wholly owned subsidiary of International Datacasting Corporation, provides a wide range of Internet access services to residential and business users. An industry leader in fixed-wireless connectivity, Storm currently maintains one of the largest broadband wireless networks in North America, covering approximately 35,000 square kilometers, spanning more than 50 communities and municipalities. Storm is known for providing consistent and highly reliable connectivity as well as the dedication and care taken to maintain excellent customer service. Visit Storm on the web at www.storm.ca.

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 data-casting 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 operates under a rigorous ISO9002 quality management system and is the recipient of the prestigious Canada Export Award for Innovation and Technology Achievement. IDC is headquartered in Ottawa, Canada. IDC also has an established international network of partners and distributors and installations in more than 45 countries worldwide. Visit IDC on the web at www.intldata.ca.