Pilat Media signs contract with Fox Television Stations, Inc.

Press Release: 16 August 2005

Pilat Media Global plc. ("Pilat Media" or the "Company"), the London-based AIM-listed supplier of business management software to broadcasters around the world, is pleased to announce the signing of the full-form contract for the licensing, implementation and long term support of its flagship product IBMS (Integrated Broadcast Management System) to the Fox Television Stations, Inc ("FTS"), replacing a Letter of Intent announced on May 17th, 2005.

The implementation project, including customisation to suit FTS' requirements, integration with neighbouring systems and the gradual roll out across FTS stations and sport networks is planned to take 2.5 years. The contract value over this implementation period is estimated to be $15 million covering the IBMS licences and implementation services. Additional long-term support and maintenance revenues will commence as the system goes live.

Fox Television Stations, Inc., a wholly owned division of News Corporation (NYSE: NWS, NWS.A; ASX: NWS, NWSLV), is one of the largest broadcast groups in the United States, with annual sales exceeding $2.5 billion. FTS operates thirty-five local television stations, covering nearly 45% of all American television households, and handles advertising sales for 11 regional sports networks.

Commenting on the contract with Fox Television Stations, Inc., Avi Engel, Chief Executive of Pilat Media said: "We are proud to have been selected by FTS and will spare no effort to justify their trust in us. We are looking forward to a long and productive partnership."

Betsy Swanson, Executive Vice President and Chief Financial Officer of FTS, further commented: "This is a very exciting opportunity to bring one of our key business systems up to the next generation. We believe the joint efforts of Pilat and FTS will result in a top-notch, fully integrated broadcast management system that will better position FTS to manage our business more efficiently and continue to strengthen our competitive position."

This is one of Pilat Media's most important contracts to date as it confirms its market leading position and facilitates accelerated penetration into the lucrative US broadcast market. However, it has taken longer than originally planned to finalise the contract. As a result, under the project schedule now finalised, this project will make a lower contribution to the Company's revenues this year than originally planned with a correspondingly higher proportion of the contract value to be recognised in 2006 and 2007. This makes it less likely that revenue growth expectations for the Company this financial year will be fully met.

It is still too early to predict the extent of any shortfall since revenue gains in other areas of the business are being achieved and will to a certain extent mitigate the possible shortfall caused by the above delay. The first half year results are in line with internal budget expectations and the majority of revenues and profits will fall into the second half of the year according to plan and as previously indicated. Backlog from existing clients, the pipeline of additional prospects and cash resources remain as strong as previously indicated.

-Ends-

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).