Optibase Named Global Leader in IP Video Headends; Recent market study by MRG Inc. recognizes Optibase's strong growth potential

Business Wire, June 21, 2004

CHICAGO & HERZELIYA, Israel -- Optibase (Nasdaq:OBAS) today announced that in a recent market research conducted by US based research firm MRG Inc. (Multimedia Research Group) Optibase has been named a global market leader with very strong growth potential following its continuous IP TV head-end deployments in North America and the international Markets.

"Examining the players in the global IP TV market we found that Optibase with its MGW 5100 system has quickly established itself as a leader," said Bob Larribeau senior analyst with MRG. "We believe that Optibase's inclusion in major IP TV networks in Europe and Asia have positioned it for very strong growth."

"This prestigious ranking is a testament that the MGW 5100 is well positioned to address strict carrier grade requirements, as IPTV services become broadly adopted," said Uzi Yahav vice president, marketing and business development, Optibase Broadband TV Business Unit. "We take great pride in this recognition and in the fact that our platforms are already enabling large international operators as well as small North American rural companies to generate new revenue services."

About Optibase

Optibase, Ltd. (Nasdaq:OBAS) provides professional encoding, decoding, editing, compositing, 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 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.