Citizens Cablevision Company Chooses Optibase for Triple Play Services; MGW 5100 Chosen for Its High Quality Video and Easy Migration Path for Future Video Formats

Business Wire, July 27, 2004

MOUNTAIN VIEW, Calif. & FLOYD, Va. -- Optibase (Nasdaq:OBAS) a leading provider of carrier grade TV streaming platforms today announced that Citizens Cablevision, a wholly owned subsidiary of Citizens Telephone Cooperative, has selected Optibase's MGW 5100 carrier grade streaming platform to deliver advanced TV services to its subscribers.

Citizens Cablevision Inc. was formed to provide broadband data, video and voice services to the cooperative members as well as to those residing in the surrounding communities. The Virginia-based independent operating company services over 7500 subscribers in the Floyd area. Offering voice and Internet services, Citizen Cablevision sought a platform that would enable it to offer competitive video services using its existing network.

"We wanted a platform that would easily enable us to expand our range of services without complex integration needs," said Danny Vaughn, network manager at Citizen. "Optibase's MGW 5100 integrated platform met this requirement and offered unmatched video quality at competitive pricing. A migration path for future use of Windows Media 9 and MPEG 4 video formats was an attractive bonus."

For additional information on MGW 5100 and Optibase, please visit our website at http://www.optibase.com/html/solutions/carrierclass.html or send an email to info@optibase.com.

About Optibase

Optibase, Ltd. (Nasdaq:OBAS) provides professional editing, compositing, encoding, decoding, video server upload and streaming solutions for telecom operators, service providers, broadcasters and content creators. The company's platforms enable the creation, broadband streaming and playback of high quality digital video. Optibase's breadth of product offerings are used in applications, such as: video over DSL/Fiber networks, post production for the broadcast and cables industries, archiving; high-end surveillance, distance learning; and business television. Headquartered in Israel, Optibase operates through its fully owned subsidiary in Mountain View, California and offices in Massachusetts, 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.

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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.