ClearWorks Selects Optibase MGW 2000 for Delivery of Broadband Video Services to Residential Customers

Business Wire, Dec 19, 2000

Business Editors & High Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 19, 2000

Optibase, (Nasdaq:OBAS), a leader in broadband media streaming solutions, today announced that its MGW 2000 streaming media gateway has been selected by ClearWorks.net (AMEX:CLW) for distribution of high quality video- and audio-based services to residential and business customers using DSL, Fiber-To-The-Home (FTTH) and other broadband access technologies. Optibase is also providing ClearWorks with its endpoint solutions which will be installed in set top boxes residing in customers' homes.

As the race to provide broadband services to the home heats up, ClearWorks has emerged as a pioneer in developing "last mile" solutions for neighborhoods and businesses wishing to receive streaming video, high speed Internet connectivity, and voice-over-IP telephone services integrated into a single consumer-oriented economical platform. The MGW 2000 enables ClearWorks to offer a variety of high quality streaming video services including digital multi-channel video channels and on-demand video rental.

The MGW 2000 is a plug-and-play, multi-channel streaming server with an embedded operating system that is capable of encoding and transmitting 16 live and pre-recorded streams simultaneously, including up to six in real time, and delivering full-screen, full-motion, high quality video. The unit is packaged in a two-RU-high, rack-mounted, future-ready modular platform with a variety of network interfaces. In addition, the MGW 2000 features field upgradeable slots capable of hosting a mix of new modules, which currently include MPEG-1, MPEG-2 and MP3 streaming from 32Kbit/s to 10Mbit/s. These encoding modules are field swappable and upgradeable. An ultra-wide SCSI interface connects the MGW 2000 to an external storage device for on-demand services. An Ethernet port provides connectivity to the web for remote management.

The MGW 2000 has been successfully tested, addressing applications such as video on demand, time-shifted TV applications over xDSL, interactive TV services, business TV, distance learning, B2B communications, web TV, broadcast TV, and video over DSL.

"Our use of Optibase equipment has enabled us to become a world leader in streaming video delivery," said Michael McClere, CEO of ClearWorks. "We have integrated Optibase's technology into the key components of Bundled Digital Services (BDS) which have allowed us to go to market with our unique service delivery model. With Optibase, streaming video has become more reliable than traditional analog video technology, with better resolution, features and manageability."

Bob DeFeo, president of Optibase Inc., said, "We are excited to be chosen by ClearWorks to provide a solution for content distribution as well as an endpoint solution for the delivery of broadband IP-based video services to the home. This represents a significant step in Optibase's strategy to become the go-to company for video solutions for the broadband network infrastructure environment. We believe ClearWorks is making important strides towards fulfilling the promise of broadband networks by delivering TV quality video, voice and data to residential customers."

About ClearWorks

ClearWorks.net is one of the leading providers of Fiber-To-The-Home (FTTH), often referred to as "the last mile" solution, for neighborhoods and businesses utilizing the company's Bundled Digital Services (BDS) which includes high-speed Internet connectivity, dial-tone, digital multi-channel video, on-demand video rental, a community Intranet and other digital services.

About Optibase

Optibase provides high-quality, cost-effective products that enable the preparation and delivery of streaming media based services over broadband networks. Optibase has created a breadth of product offerings used in applications which involve-the delivery of video over broadband networks, such as digital video archiving, distance learning and business television. Headquartered in Israel, Optibase operates through its fully owned subsidiary in San Jose, Calif., and offices in the UK, France, China and Japan. Optibase products are marketed in over 40 countries through a combination of direct sales, independent distributors, system integrators and OEM partners. For more information, please visit Optibase's Web site at www.optibase.com.

This press release contains certain "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. Specifically, the statements regarding the application of MGW 2000, the future release of follow-on versions of MGW 2000 and their application are forward looking, and involve certain risks and uncertainties associated with products and services based on novel technologies. Actual results could differ materially from such forward-looking statements. For more information regarding Optibase and risks and uncertainties associated with Optibase's operations, please see the discussions and risk factors in Optibase's Registration Statement (No.333-11396) (declared effective on March 8, 2000), and annual report on Form 20-F filed with the Securities and Exchange Commission for the 1999 fiscal year.