International Dispensing Corporation Announces Agreement With Steuben Foods to Market New Aseptic Product Lines; Three New Market Solutions Will Feature the Fresh Flow(TM) Tap For Aseptic Dispensing

HANOVER, Md.--(BUSINESS WIRE)--July 31, 2006--International Dispensing Corporation (IDC) (OTC:IDND.PK), a developer and marketer of proprietary dispensing solutions, and Steuben Foods, one of the nation's largest low-acid aseptic producers, have announced today that they have entered into a long-term agreement, under which Steuben Foods will market three aseptic bag-in-box product lines featuring IDC's Fresh Flow(TM) Tap.

Under the agreement, Steuben Foods has the exclusive right in North America to manufacture and sell bag-in-box coffee creamers, iced-coffee beverages, and acidified milk products using the Fresh Flow(TM) Tap for any non-refrigerated end-use. All three product lines will be developed and commercialized by Steuben Foods over the next twelve months. The Fresh Flow(TM) Tap is the world's only certified and commercially proven aseptic dispensing tap. It can dispense low and high-acid products from a flexible bag or pouch without breaking sterility, and thus eliminate the need for refrigeration and preservatives. The Fresh Flow(TM) Tap received the DuPont Award (2003) and the Gold Medal for Technical Excellence (2003) from the Flexible Packaging Association, and it has broad international patent coverage.

"We are breaking new ground using cutting-edge technology, and believe we can offer foodservice operations better options for delivery of low-acid products to the consumer," says Ken Schlossberg, president of Steuben Foods. "Foodservice operators will soon be able to dispense aseptic processed and packaged dairy products without the cost and maintenance headaches associated with refrigeration. The products we will be launching remain aseptic to the last drop because of the unique features of the Fresh Flow(TM) Tap."

"There is no more reputable or innovative dairy producer than Steuben Foods," says Greg Abbott, founder and chairman of International Dispensing Corporation. "Their state-of-the-art plant and expertise are unsurpassed. We are delighted to have a partner of such stature validating our technology. Once potential end-users see the savings and benefits, there is no telling how far this partnership can go." Steuben Foods, a privately held food packaging company based in Jamaica, New York, manufactures a wide variety of branded and private label products for numerous multi-national food companies.

Steuben Foods' recent innovative brand launch, "Yo On The Go," has enjoyed considerable success in club stores and is growing rapidly. The three above-referenced product lines containing IDC's tap will be produced at Steuben Foods' Elma, New York plant, a 350,000 square-foot Grade-A facility on the outskirts of Buffalo.

International Dispensing Corporation is a research and development company that develops and manufactures leading-edge packaging and aseptic dispensing solutions. For additional information on International Dispensing Corporation and its technologies, please visit www.idcdispensing.com or call 410-761-0070.


International Dispensing Corporation (IDC)

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