EnReach and Optibase Deliver TV Over IP Solution For Broadband IP; Solution Enables Pay-service Choices to Subscribers

Business Wire, Feb 11, 2002

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Feb. 11, 2002

EnReach Technology, Inc., a leading global provider of digital video entertainment systems for broadband IP networks, and Optibase, Ltd. (Nasdaq:OBAS), a leader in digital streaming solutions over broadband networks, announced today their partnership to deliver a TV over IP solution for broadband IP infrastructures. The Optibase MGW 2000 and MGW 3100 media gateway products have been fully integrated with EnReach's Residential/MDU and Hospitality systems to enable a 'plug and play' TV over IP solution. Telco and convergent broadband operators can now offer a greater level of pay-service choices to their subscribers.

"Broadband operators servicing multi-tenant buildings, single-family homes and student housing environments now have a strong position against incumbent cable providers. Utilizing the combined EnReach and Optibase solution, they can provide their subscribers with more choices, including TV over IP services," said Greg Eisips, President, Optibase Inc. "In addition to the cable-like programming service, convergent operators have the advantage of offering two-way services which may not be available from the traditional cable operator. We believe TV over IP service will be a significant source of revenue for broadband operators."

The successful implementation of the EnReach and Optibase product offering provides network operators with a high-quality low-cost encoder, a choice of low-cost EnReach-enabled set-top boxes, a third generation back-end service management system, and support for six VOD servers. Network operators with DSL, 'fiber to the home' or wireless infrastructure can now deploy TV over IP and two-way interactive services such as video-on-demand, personal video recording, web browsing and e-mail.

"The viability of the broadband IP market is a reality and today there are key applications such as TV over IP that will drive market penetration. Our partnership with Optibase helps to further propel the TV over IP offering by providing operators with the technical tools required to quickly offer advanced digital services over broadband IP infrastructure. The time-to-market for TV over IP services will be reduced significantly as a result of the integration," said Bo Wu, president and CEO for EnReach.

"We also believe broadband operators selecting the EnReach-Optibase solution will see a strong return on their investment. The solution we are offering is an important milestone for broadband operators deploying digital services over IP environments."

About EnReach

EnReach is a global provider of digital video entertainment systems for broadband IP networks. EnReach has developed complete broadband-ready entertainment systems for MDU/Residential and Hospitality operators to offer revenue-generating services such as: VOD, IPTV, DVR, Internet and E-mail to their subscribers. Headquartered in Silicon Valley, the privately held company has offices in Toronto, Canada, Hong Kong, Beijing and Shenzhen China. Additional information regarding EnReach Technology, Inc. is available at www.enreach.com

About Optibase

Optibase, Ltd. (Nasdaq:OBAS) 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: video-on-demand; real-time video streaming; digital video archiving; distance learning; and business television. Headquartered in Israel, Optibase operates through its fully-owned subsidiary in San Jose, California and offices in Scandinavia, Austria, France, 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.

Note to Editors: EnReach and EnReachTV are trademarks of EnReach Technology, Inc. All other products are trademarks or registered trademarks of their respective owners.

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 Registration Statement on Form F-1 filed with the United States Securities and Exchange Commission.