Paris, France. July 28, 2010—VITEC Multimedia—a worldwide leader in advanced digital video solutions—announced completion of the purchase of both the Optibase video business and the Focus Enhancements’ Systems Group. With these purchases, VITEC now adds industry-leading IPTV solutions, and video acquisition and management products to its lineup, including Media Gateway video encoders and decoders, FITIS Full Motion Video and EZ TV IPTV solutions, FS Portable DTE Recorders, ProxSys Media Asset Management solutions, media converters, and OEM-ready media hardware and software.

Now, customers in the broadcast, government, military, medical, education, industrial, and production markets can depend on VITEC throughout the entire video production process including acquisition, conversion, image processing, MPEG compression, recording, media asset management, streaming, decoding and delivery.

“The acquisition of both the Optibase video business and the Focus Systems Group, including their product lines, brands, and key employees, further positions VITEC Multimedia as a worldwide leader in advanced digital video solutions,” said Philippe Wetzel, CEO of VITEC Multimedia. “In combination with our recent acquisition of Stradis, these acquisitions further our objective to provide a complete line of advanced digital video solutions to our customers around the globe. With innovation at its core, the VITEC R&D division—now with more than 100 esteemed engineers—is uniquely positioned to deliver innovative solutions for a wide range of advanced digital video applications—managing the entire video process from source to display.”

About VITEC Multimedia

VITEC specializes in the development and industrialization of advanced digital video solutions in the MPEG field for OEMs and integrators. Since 1988, VITEC Multimedia has been devoted to the development of MPEG encoding and decoding solutions and the creation of innovative concepts intended for digital video applications. Since 1990, VITEC has focused its efforts on digital video and conforming to ISO standards such as MPEG.

Since its creation, VITEC Multimedia has been universally recognized for its groundbreaking product development. Its strengths are based on a team of skilled and experienced engineers who understand the challenges and nature of demanding customer requirements.

Under the terms of the transaction, which was approved by the Board of Directors of both companies, in consideration for the sale of the Business, Vitec will pay the Company an aggregate amount of US $8 million in cash of which US $1 million will be deposited in escrow for a 2-year period as a security, inter alia, for breach or material inaccuracy relating to Optibase's representations and warranties. In addition, Optibase and Vitec agreed on an earn-out mechanism pursuant to which 45% of Vitec's revenues deriving from the Business exceeding $14 million in the year following the closing of the Transaction will be paid to Optibase.

Consummation of the Transaction is subject to the fulfillment of certain conditions precedent standard for transactions of this nature, including, inter alia, receipt of all necessary approvals and permits and the Company’s shareholders’ approval. The Transaction is expected to close during the second quarter of 2010. However, there is no assurance that the parties will be able to satisfy the conditions precedent to the Transaction by the time set in the agreement or at all.

Upon signing of the Transaction, Vitec deposited US $500,000 in escrow to be paid to Optibase if closing does not take place within a specific period of time from signing, subject to certain limited circumstances, principally relating to non fulfillment of certain closing conditions by Optibase, in which case, such funds will be returned to Vitec.

“Following an offer from Vitec, we have decided to pursue this opportunity as we believe that Vitec is the right company to ensure the continuity of the business in its existing markets as well as maintaining the Optibase brand”, commented Tom Wyler, President & Chief Executive Officer of the Company. “As a pioneer and a market leader in the field of digital video, Optibase proved to be a significant player in the market as well as being a greenhouse for such advanced technologies, and I’m sure that it will continue this course in its new form.”

"We are delighted to be a part of this significant agreement. The two pioneers in the Digital Video domain merge forces, thus providing the most complete offering on the market. We will continue to develop the growing Optibase markets such as the enterprise and IPTV markets and their related products, and support the needs of current and future customers” commented Philippe Wetzel, President & CEO of VITEC Multimedia. “From Advanced Video Streaming and management solutions to Specialized Video Recorders, this joining of forces will introduce a wide array of products and solutions such as MPEG Encoders and Decoders, Smart Cameras, Digital Video converters, IPTV solutions, and much more."

Since its creation, VITEC Multimedia has been universally recognized for its groundbreaking product development. Its strengths are based on a team of skilled and experienced engineers who understand the challenge and nature of an ever demanding customer’s requirements.

VITEC Multimedia's main objectives are to provide high-end Technology and complete solutions to the Digital Video Market.

For more information visit: http://www.vitecmm.com/ or http://www.stradis.com/

This press release contains forward-looking statements concerning a business transaction. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management's current expectations which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the uncertainty that closing of the Transaction will take place and, in particular, the uncertainty relating to the occurrence or fulfillment of the conditions to closing of both Optibase and Vitec, risks relating to the requisite regulatory and other approvals that may not be obtained; and the other risks and uncertainties faced by each company, as reported, in the case of Optibase, in its most recent Forms 20-F and other filings with the Securities and Exchange Commission, including in the case of Optibase ,but not limited to, risks related to the video technologies market in general, and the evolving IPTV market in particular, competition and Optibase's ability to manage growth and expansion. The Company does not undertake any obligation to update forward-looking statements made herein.

VITEC Multimedia Acquires World Wide Exclusive Manufacturing, Marketing and Distribution Rights of Visual Circuits Multi Channel MPEG Decoder boards and Digital MediaConverter MC-2E from FOCUS Enhancements.