Optibase Unveils New MPEG-4 Encoder; MPEG MovieMaker 400 Provides High Quality Video at Low Bit Rates

AMSTERDAM, Netherlands & HERZLIYA, Israel--Sept. 12, 2003--Optibase, Ltd. , a leader in digital video encoding and streaming solutions, today unveiled its new MPEG-4 hardware video encoder, MPEG MovieMaker 400, which is ideal for organizations that want to implement surveillance, training, video conferencing and business TV solutions.

The newest addition to the company's family of PCI based video encoding platforms, MPEG MovieMaker 400, operates in many different modes including: dual channel and single channel MPEG-4 ISO full D1 encoding, all of which fold into the standard rich Optibase Software Development Kit (SDK). Its small form factor (low profile PCI; half height, half length) enables easy integration into any off the shelf standard PC. System integrators can easily utilize high video quality at low bandwidth to develop their own applications such as surveillance of traffic, buildings or machine operations, corporate training or conferencing and live TV channels to the desktop.

One MPEG MovieMaker 400 board has the ability to encode two simultaneous MPEG-4 ISMA channels and each channel can be streamed in three different encoding bitrates. Up to six MPEG MovieMaker 400 boards can be plugged in the same PC providing a total output of 36 encoded streams from 12 different sources. As a member of the Internet Streaming Media Alliance (ISMA), Optibase is working together with other industry leaders to ensure compatibility. Currently, the MPEG MovieMaker 400 has the ability to stream to generic players such as QuickTime, RealOne and Windows Media players (using Plug-ins).

MPEG MovieMaker will be available for shipment in Q4 of 2003. For additional information on MPEG MovieMaker 400, please send an email to info@optibase.com or visit www.optibase.com. For a list of additional ISMA member companies, please visit www.isma.tv.

About Optibase

Optibase, Ltd. provides high-quality, cost-effective products that enable the preparation and delivery of MPEG-based digital media over broadband networks. Optibase has created a breadth of product offerings used in applications, such as: TV to the desktop, corporate communications, surveillance, digital video archiving and distance learning. Headquartered in Israel, Optibase operates through its fully owned subsidiary in Mountain View, California and offices in Europe, Japan and China. Optibase products are marketed in over 40 countries through a combination of direct sales, independent distributors, system integrators and OEM partners. For further information, please visit www.optibase.com.

This news release contains forward-looking statements concerning our marketing and operations plans. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the evolving market for digital video, competition, our ability to manage growth and expansion, general economic conditions and other risk factors. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward looking statements in this news release, please refer to Optibase's most recent annual report, its Registration Statement on Form F-1 filed with the United States Securities and Exchange Commission and other filings with the SEC.

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