Pilat Media: Placing raises £5.2m for Company and Shareholders

Information Release: 6 April 2004

Placing of 6,363,636 new ordinary shares of 5 pence each ('Placing Shares') at 55 pence per share (the 'Placing') and ,100,000 existing ordinary shares of 5 pence each (the 'Vendor Shares') at 55 pence per share (the 'Vendor Placing')

Pilat Media, the London-based provider of business management software to broadcasters around the world, is pleased to announce successful share placings by Shore Capital Stockbrokers Limited (SCS") to raise in aggregate £5.2 million, before expenses, for the Company and existing shareholders.

Pursuant to the Placing, the Placing Shares have been conditionally placed, subject to shareholder approval, at 55p per share with institutional and other investors. The proceeds of the Placing receivable by the Company will be used to expand the Company's sales and marketing operations, to enhance its product and for working capital purposes.

In addition, subject to completion of the Placing, SCS has conditionally placed on behalf of existing shareholders the Vendor Shares at 55p per share pursuant to the Vendor Placing.

As part of the Vendor Placing, Avi Engel and Samuel Sattath, directors of the Company, have sold in aggregate 1.5 million Ordinary Shares. The board of Pilat Media will retain an interest in, in aggregate, 4,460,478 Ordinary Shares representing 8.9 per cent of the issued share capital of the Company following completion of the Placing and the Vendor Placing. The interests of Mr Engel, Mr Sattath and the other selling shareholders in the issued share capital of the Company following completion of the Placing and the Vendor Placing will be as follows:

The Placing is conditional on the approval of shareholders and the Vendor Placing is conditional on completion of the Placing. A notice convening an extraordinary general meeting to be held at 12 noon on 28 April 2004 at 19 Floor, Wembley Point, 1 Harrow Road, Wembley, HA9 6DE for this purpose has today been despatched to shareholders.

Application is expected to be made on 26 April 2004 for the Placing Shares to be admitted to trading on the Alternative Investment Market of the London Stock Exchange ('AIM'). It is expected that dealings in the Placing Shares will commence on AIM on 30 April 2004.

The Placing Shares and the Vendor Shares represent, in aggregate, 18.8 per cent of the issued share capital of the Company as enlarged by the Placing.

On 24 March 2004 the Company has also released its preliminary statement of results for the year ended 31 December 2004 which show turnover of £9.4 million for the period and the Company's first full year profit since its demerger from Pilat Technologies International Limited in February 2002. The Directors of Pilat Media consider that the terms of the Placing are fair and reasonable and in the interests of the Company and its shareholders as a whole.

Michael Rosenberg, Chairman, commented: "We are delighted to have secured this additional funding which will facilitate the accelerated development of Pilat Media's business as a leading provider of business management software to broadcasters around the world. We are particularly pleased that there was such a strong and positive response to the placing and that this exercise has significantly increased the number of leading institutions holding Pilat Media shares as well as widening the free float of the Company."

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