I'm guessing it's a proper binary encoded. I've been finding shellcode that decodes the binary AFTER it has been downloaded by the shellcode. If you can find the exploit that links to it, load the shellcode into ollydbg and follow it and you'll see the normal download code plus a routine that decodes the binary. Normally the shellcode is a simple conditional XOR, this looks like something more maybe. If I find anything I'll post more detail.