Pilat Media Wins A Strategic New Contract With Sky Techco Partners

Press Release: 21 February 2001

London and Tel Aviv, 21st February 2001 - Pilat Technologies International ('Pilat') is pleased to announce that its subsidiary Pilat Media ('Pilat Media'), that provides digital-ready business software for broadcast management and advertising sales, has signed a contract for the supply of IBMS, Pilat Media's Integrated Broadcast Management System to Sky Techco Partners (SkyLA). SkyLA, centred in Miami USA, broadcasts via satellite to Latin American countries including Mexico, Brazil and Argentine in partnership with local affiliates in each of the countries. Together with BSkyB, another Pilat Media client, and the Asian Star TV, SkyLA is a part of Sky Global, the global broadcasting network majority held by News Corporation Limited. The first year value of the contract is estimated at approximately £1 million with additional maintenance fees expected annually thereafter.

SkyLA operates a technologically advanced digital broadcasting centre in Miami up-linking approximately 200 channels and pay-per-view (PPV) and near-video-on-demand (NVOD) services, and Pilat's IBMS will serve as the central channel management system responsible for content acquisition, scheduling, promotions, traffic and presentation. The implementation of IBMS at SkyLA has already started and it involves integration with major third party technology suppliers including NDS. Pilat Media believes that successful implementation at SkyLA can serve as an important stepping-stone for further expansion in America.

Pilat has recently announced its intention to de-merge Pilat Media and list it separately in London and Tel Aviv later this year, alongside the already listed Pilat Technologies that will focus on the core HR consulting and software business in the UK, USA and Israel. Pilat Media is a three year old venture of the Pilat group that was set up following the initial development of IBMS for BSkyB and a utilisation and marketing rights agreement with BSkyB in late 1998. Since its launch in 1999 Pilat Media has established an international client base of fifteen broadcasters in Europe, Austral-Asia and the USA including Fox Kids (Europe), Australia's Network Ten, UPC and the UK's Channel 5.

Commenting on the announcement, Avi Engel, Chief Executive of Pilat, said: 'We are delighted to be working with SkyLA. As well as strengthening our links with Sky's international operations, it provides us with another bridgehead into the lucrative Latin American television market where we believe there is significant potential for us.'

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The Media Division - Pilat Media

The business of Pilat Media commenced in 1997 through the development of its Integrated Broadcast Management System (IBMS) for BSkyB. IBMS was designed to enable BSkyB to manage efficiently its growing multi-channel operations into the digital era, integrating the processes of content acquisition, programme asset management, certification and editorial tracking, access controlling, pay-per-view and NVOD administering, programme planning and scheduling down to transmission and post transmission reconciliation.

In late 1998, Pilat Media secured exclusive long-term rights to utilise the IBMS technology in return for the payment of royalties to BSkyB, and subsequently launched IBMS as a commercial product for third party use. Since then the company has had considerable success in the development of its business, and following the acquisition of a competitor, Rebus Media, in late1999 it now serves fifteen clients internationally including BSkyB, Fox Kids, Cinenova (Europe), Network Ten (Australia), Sky New Zealand, TVNZ, Yes (Israel), LAPTV (US), Digital Latin America (Latin America), Fox Sports (Australia), SuperSport (South Africa), UPC (Europe), and Channel 5 (UK). The contract with Network Ten of Australia is to provide its existing IBMS services, but also to develop a new ad-sales system complementary to IBMS, which will substantially broaden the scope of Pilat Media's product and service offering. Network Ten will act as a beta reference site for the new system when it becomes available late this year.

The Human Resource Division

Pilat Human Resources Solutions is an international consulting group, providing strategies, processes, data and software tools for the development and effective management of staff. The division operates from offices in London, New Jersey and Tel Aviv and comprises a team of some 150 professionals, including HR practitioners, business psychologists, data analysts and software engineers.

Clients include Credit Suisse First Boston, the World Bank, BT, Pfizer and Swiss Re. Pilat was simultaneously listed on the Alternative Investment Market of the London Stock Exchange and the Tel Aviv Stock Exchange in 1996.