Pilat Media Global plc Acquires ML Software B.V.

Press Release: 20 February 2006

Pilat Media Global plc ("Pilat Media" or "Company"), the leading supplier of business management software for broadcasters around the world, is pleased to announce that it has today acquired the whole of the issued share capital of ML Software B.V. (known as Media-Line), a Dutch supplier of software solutions for airtime advertising sales.

Media-Line is a private company that was founded in 1997 and has currently 19 employees, all based in Amsterdam. Twelve European clients are currently using the Media-Line software, supporting advertising sales on over 150 TV and radio channels. These clients include SBS 6 (Holland), SBS Belgium, SBS MTM (Hungary), Jetix Europe BV (Holland), Vlaamse Media Maatschappij (Belgium), IP Multimedia AG (Switzerland), Digital Media Sales/ Digitex (UK), Magyar Televísió (Hungary), Prima TV (Romania), CRS (representing 13 regional channels - Holland), and RTL Televizija (Croatia).

For the year ended 31 December 2005, Media Line generated revenues of € 2.24 million (£1.53 million), (2004: € 1.35 million, £0.92 million) and profit before tax of € 0.676 million (£0.46 million) (2004: € 0.277 million, £0.2 million). Net assets at 31 December 2005 amounted to €1.0 million, (£0.68 million). Based on the current order book and sales pipeline, the Directors expect continued growth for 2006.

The aggregate consideration is a maximum of € 3.5 million (£2.4 million). The initial consideration comprises the payment of € 1,913,600 (£1.3 million) in cash and the issue and allotment by the Company to the vendors of 1,664,272 new ordinary shares of 0.05p each in the Company. Additional consideration of up to € 500,000 (£342,000) in cash may be payable dependent on 2006's performance, defined mainly in terms of revenue growth. Application has been made for the 1,664,272 new ordinary shares to be admitted to trading on the AIM Market and dealings are expected to commence on 24 February 2006.

The acquisition will be funded from Pilat Media's existing resources. As Media-Line is cash positive the Directors expect Media-Line to be able to fund its own working capital requirements.

Media-Line's main product, MediaPro, is a smaller scope product when compared with Pilat Media's IBMS, focusing on advertising sales only and designed to support less complex airtime sales operations. It is suited for smaller and medium size broadcasters and can also support independent sales houses, which sell airtime for a number of different broadcasters. The Directors believe that these attributes, as well as Media Line's established presence in Central and Eastern Europe, make it an effective platform for Pilat Media to broaden its offering, expand its target market and accelerate its growth, especially at this time when much of the Company's efforts are dedicated to the larger IBMS clients and to North America. For Media-Line, realizing its growth potential should be facilitated through being part of a larger group.

G.J. Beckmann, CEO of Media-Line, said: "As a smaller quality provider in our industry, joining a powerful organization like Pilat Media can only strengthen our joint offering. We are looking forward to working as part of the enlarged Pilat Media family. Our customers, prospects and staff feel very comfortable with this next step in our company's evolution and can rely on the continued and dedicated support for MediaPro."

Commenting on the acquisition, Avi Engel, Pilat Media's CEO said: "We are pleased to have concluded this transaction quickly and amicably with Media-Line. It is an important niche acquisition that can contribute to accelerating our growth in revenues and earnings per share as well as increase our marketing reach and service flexibility."

-Ends-

Notes to editors:

Pilat Media is an AIM-listed UK company, currently 169 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 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. All of these have been historically serviced by several, typically 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 further 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 32 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. Additional clients include Fox Networks (USA), E Entertainment (USA) CTV (Canada), Discovery (International), five (UK), TV New Zealand, Playboy (US), Sky Italia and TV4 (Sweden).