SBS Interactive sets debut of revolutionary duo(TM) immersive video technology in film presentation Jan. 31 at Noon Eastern

System Seamlessly Inserts Viewers into Video Content, Potential to Transform Multi-Billion-Dollar Markets

TORONTO, CA, Jan. 28, 2005 -- SBS Interactive, (OTC Bulletin Board: SBSS), an innovator in the development of next-generation immersive and interactive video and television technology, has announced its planned debut next week of the Company's groundbreaking proprietary interactive video technology and product line. The announcement was made by Todd Gotlieb, President and CEO of SBS Interactive.

On Monday, January 31, at 12 noon, Eastern, SBS will introduce duo(TM), an immersive and interactive video system that plugs into standard television sets, enabling completely new categories of video-based training, instruction and entertainment. The duo(TM) system uses the same blue screen technology used by the movie production industry to both put the viewer in the picture, as well as bring the program into the viewer's room or office, where the viewer then becomes a player in the video production. Thus, users see themselves inserted into the video production, where they become part of the program in a fully dynamic, intelligent and interactive manner.

Interested investors and other parties are invited to view the video to learn more about SBS's proprietary duo(TM) technology. To view the video, please visit a few minutes before 12 noon Eastern on January 31, and follow the simple instructions at the site. There is no charge to view the video.

"This film clearly demonstrates for viewers and interested investors what the future of immersive and interactive video will look like," said Mr. Gotlieb. "The future of video entertainment will not be flat and passive, or something to merely watch. Instead, it will become something to do, in a fully immersive and interactive way. They can learn new job skills alongside teachers, or study their golf swings with professional instructors, or just have fun in the company of some of their favorite television characters. The possibilities are endless."

SBS is targeting the duo(TM) technology at multiple multi-billion-dollar marketplaces. Among the potential applications for duo(TM) technology are: business-to-business communications, children's programming, entertainment, gaming, instructional media and medical research, among others. For example, children can play with dinosaurs in their bedroom; adults can perfect their tennis serves beside a pro or learn how to cook a Cordon Bleu meal in their own kitchens. Health care professionals and high-tech professionals can learn to use new medical or scientific equipment in an interactive, hands-on video environment, as they stand next to an instructor in their own office, classroom, or clinic - all in fully interactive, step-by-step tutorials. Other applications include next-generation karaoke, in the form of "videoke," which has the potential to further spread the commercial and consumer applications of duo(TM), allowing users to not only provide vocals to a favorite tune, but to perform it fully, in the company of popular musicians and performers.

SBS strategies for increased market share of duo(TM) products include the re-purposing of existing brands and material, and the prospect of developing evergreen libraries of programming in conjunction with sports leagues, universities, athletes, animation icons, prizewinning cooks and other brands. Additionally, the Company's proprietary utilization of blue screen will ensure that unit prices of content developed for duo(TM) will remain competitive with existing, previous-generation DVDs.

SBS also holds licensing control, and may reap potential benefits from growing revenue streams in all three areas where its patented duo(TM) technology augments the viewer/user experience, including gaming, home video and filmed content. After an initial rollout for business-to-business customers and digital cable providers, the Company intends to conduct a wider rollout of consumer set-top boxes for the 2005 holiday season, to be priced below popular gaming and video recording units. An advanced motion-detection software application is also being developed to enhance business-to-business applications and market share.

About SBS Interactive, Co.

SBS Interactive is an emerging innovator in the development of next-generation video products, using the entertainment industry's most advanced visual effects technology to create a new category of video-based interactive and immersive entertainment, training and educational products for the consumer and business-to-business markets. The Company possesses exclusive technology licenses and proprietary solutions that enable the long-awaited move to fully immersive forms of entertainment, allowing the viewers and users to play -- and learn -- in their own world. The Company's duo(TM) (formerly known as Side by Side) product technology uses a propriety, patented reverse "blue screen" technology to seamlessly combine virtually any kind of pre recorded or computer generated content with the users' environment. The environment integrates with the content via the fully automated digital camera in the duo(TM) set-top box, in real time.

Cautionary Statement

All statements in this news release that are not statements of historical fact are forward-looking statements, including the statement that the Company expects to receive bigger orders as subscribers become familiar with the Company's technology. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include whether or not the Company's product will perform as expected, whether or not the Company can raise capital when and as it needs it, the Company's ability to create a market for its product, general economic conditions that adversely effect spending, the development of competitive products that may perform better or be less costly than the Company's product, and other factors over which the Company has no control. SBS Interactive, Co. assumes no obligation to update these forward-looking statements, and does not intend to do so.v SOURCE SBS Interactive, Co.

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