Pilat Media Global plc
AIM : PGB

Pilat Media Global plc

May 12, 2006 02:02 ET

Pilat Media Global PLC: Placing to Raise Pounds Sterling 3 million

LONDON, UNITED KINGDOM--(CCNMatthews - May 12, 2006) - Pilat Media Global plc(AIM:PGB), the London-based AIM-listed supplier of business management software to broadcasters around the world, is pleased to announce that it has signed an agreement with a group of investors for an investment of GBP 3 million in the Company at 55p per share as well as the grant of certain options. The investment is being made in two tranches - the first comprising a placing to raise GBP 450,000 and the second, subject to shareholder approval, to raise GBP 2.55 million.

The lead investors are Eurocom Investments LP ("Eurocom") and Mr. Sami Totah. Eurocom is a large Israeli telecommunications group, one of the founders and shareholders in "Yes", the Israeli satellite television platform and also a client of Pilat Media.

Mr Totah is a former Chief Operating Officer of Amdocs (NASDAQ:DOX), the multi billion dollar software group. More recently he was the Chairman of Sheer Networks, which was sold to Cisco for US$120 million. It is the Company's intention, once shareholder approval has been received for the issuance of the shares at the EGM, to invite Mr Totah to become a non-executive director of the Company. Mr. Totah has a wealth of invaluable experience in managing world class software businesses and knowledge of the telecommunication industry.

The investment will be made in two stages:

Stage 1: Using the existing authority and power to allot, the Company has today agreed to issue 818,182 shares at 55p to the Investors for GBP 450,000, subject only to the approval of the Tel-Aviv Stock Exchange. An application will be made to the AIM market of the London Stock Exchange plc for the new ordinary shares to be admitted to trading on AIM as soon as practicable.

Stage 2: The Company intends to issue a further 4,636,364 shares (representing 8% of the Company's enlarged issued share capital) at 55p to the investors for GBP 2,550,000 subject to shareholder approval at an EGM that has been called for on 7 June 2006 and approval of the Tel-Aviv Stock Exchange.
After the placing the investors will hold 10.29% of the enlarged share capital of the Company.

The Company, after completion of the placing is also proposing to grant to the investors options over 991,759 ordinary shares at option prices ranging from 60p to 70p. The terms of the option grants are:

Mr Totah to be granted an option over 250,000 shares at a price of 60p per share, which will be exercisable in three equal tranches within 6, 12 and 18 months from grant date, respectively.

Eurocom will be granted an option to invest an additional GBP 500,000, GBP 250,000 within six months from completion for 384,616 new shares at 65p and another GBP 250,000 within twelve months from completion for 357,143 new shares at 70p.

A circular containing notice of an EGM with resolutions to effect the placing will be sent to shareholders as soon as practicable.

Avi Engel, CEO, commented: "We are pleased to increase our cash reserves in this fast and cost-effective way. The extra comfort of an even stronger balance sheet will help us intensify our business development activities in these exciting times of continued growth and new opportunities. We look forward to welcoming Sami Totah to our Board and we trust that his extensive experience with Amdocs and additional software companies will prove instrumental as we become increasingly involved in this new world of convergence between telecommunication and media and entertainment, leveraging our technology to exploit the great potential IPTV opens for us".

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About Pilat Media

Pilat Media is an AIM-listed UK company, with 190 staff operating from headquarters in London and offices in the USA, Australia and Israel, as well as from Amsterdam, where its newly acquired subsidiary Media Line is situated.

Pilat Media's main product is IBMS (Integrated Broadcast Management System), a new generation software system for managing the business of broadcasting. It is the world's most comprehensive broadcast solution, designed to maximise revenues and reduce costs by integrating airtime sales, content programming and media trafficking across an unlimited number of different channels or stations, regions or even countries, all under a single centralised, scalable and digital ready system. To support this full spectrum, broadcasters are typically supported by several dispersed systems. IBMS's functional breadth, depth and flexibility to suit all types of broadcasters are unrivalled, making it the first truly global system of its kind.

IBMS's first version was originally developed by Pilat Media for BSkyB, to support their fast growing multi-channel programming needs. Pilat Media was established in 1999 to develop IBMS further and market it as a generic product. IBMS's scope was subsequently more than doubled by adding the advertising sales functionality in partnership with Network Ten of Australia. Since then Pilat Media has rapidly established itself as a rising force in the market for business management software for broadcasters.

The recent acquisition of the Dutch Media Line enriches Pilat Media's offering with the MediaPro product, designed for smaller scale or independent advertising sales operations, where IBMS maybe less suited, enabling the Company to expand its marketing reach and attract additional clients, mainly in Europe and the Far East.

Today, Pilat Media's software solutions have been selected by over 45 broadcasters in Europe, North America and Australasia, representing a wide spectrum of business models, organisational size and transmission technologies - digital and analogue, on terrestrial, cable and satellite platforms. These include Fox Networks (USA), E! Entertainment (USA), CTV (Canada), Discovery (International), five (UK), BBC World (UK), Astro (Malaysia), Network Ten (Australia), TV New Zealand, Sky Italia and TV4 (Sweden).

About The Eurocom Group

The Eurocom Group is a major player in the rapidly developing telecommunication market with major involvement in every aspect of communication, media and internet. The Group includes: Eurocom Marketing - the largest company in Israel providing office automation and telecom products for the home and business. Eurocom Cellular Communications: Nokia Mobile Phones distributor and official representative in Israel since 1993. Internet Gold (NASDAQ:IGLD): the leading Internet service provider in Israel providing a wide array of internet services and related value-added services. Its subsidiaries are: Smile Media - a leading internet media and portals group. MSN Israel - the leading Portal in Israel and a joint venture with Microsoft Corporation. Yes DBS Satellite Services: the first and only company to bring multi-channel satellite TV into the Israeli viewer's home. Partner Communications Ltd. (NASDAQ:PTNR): operates as Orange Israel, a leading mobile phone carrier. Space-Communication Ltd (TASE:SCC): the AMOS satellites owners and operators. Other subsidiaries: Radio Stations, Satlink Communications (satellite teleport) and more.

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