Agreement to end royalty payments to British Sky Broadcasting

Press Release: 7 January 2004

Pilat Media Global plc (AIM: PGB) the London-based supplier of business management software to broadcasters around the world, today announces the signing of the agreement with British Sky Broadcasting Group PLC ("BSkyB") bringing to an end five years of royalty payment to BSkyB on the sales of Pilat Media's product, IBMS (Integrated Broadcast Management System).

This new agreement is in line with the original 1998 agreement between BSkyB and Pilat Media, which granted to Pilat Media the right to exploit commercially the system it had originally developed for BSkyB, in return for royalties. These royalties were 11% of the Company's revenues in the business areas covered by the 1998 version of IBMS (content programming, media and channel management), excluding revenues from the newer advertising sales and traffic modules that were funded by Pilat Media. In 2001, 2002 and in the first half of 2003 these royalties represented 9.1%, 6.8% and 10.9% of the Company's overall revenues, respectively. Following this new agreement, no further payments will be incurred with effect from 4 September 2003.

Commenting on the agreement with BSkyB, Avi Engel, Chief Executive of Pilat Media Global plc, said: "We are pleased that we have reached a quick and amicable conclusion with BSkyB to cease the royalties, this was enabled by the fact that IBMS has progressed so much since we first developed it for BSkyB, reducing the similarity with the original code below the agreed threshold that would have warranted continued royalties. The elimination of the royalty payments from our overheads will benefit the net returns of the business." "We remain grateful to BSkyB as by feeding their progressive ideas and rich functional requirements into the system's original design, we had the opportunity to create a leading edge product."

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Notes to editors:

Pilat Media is a UK company, currently 150 strong, operating from headquarters in London and offices in the USA, Australia and Israel.

Pilat Media's IBMS (Integrated Broadcast Management System) is a new generation software system for managing the business of broadcasting. It is the world's most comprehensive solution, designed to maximize 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 centralized, scalable and digital ready system. Al these have been historically serviced by several, typically dispersed systems. IBMS' functional breadth, depth and flexibility to suit all types of broadcasters are unrivalled, making it the first truly global system of its kind.

IBMS' first version was originally developed by Pilat for BSkyB, to support their fast growing multi-channel programming needs. Pilat Media was established in 1999 to further develop and market the system 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. Today, Pilat Media's software solutions have been selected by 35 broadcasters in Europe, North America and Australasia, representing a wide spectrum of business models, organizational size and transmission technologies - digital and analogue, on terrestrial, cable and satellite platforms. Additional clients include CTV (Canada), Discovery (International), five (UK), TV New Zealand, Playboy (US), Sky Italia and TV4 (Sweden).