Optibase Launches Creator Digital Video Ingest System at IBC 2006; HD/SD Multi-Format Broadcast and Archive Ingest Server for Professionals

At IBC 2006, Optibase will unveil Creator, the first in its rangeof professional digital video ingest systems. Based on Optibase'sproven encoding technologies to ensure broadcast quality contentproduction, the Creator Ingest Server incorporates Optibase'sexpertise as a leader in digital video solutions to provide a superiorquality video server, designed for professionals.

Creator is ideal for video on demand services, archiving, play outand other content creation applications that require concurrent frameaccurate high-resolution and low-resolution encoding in real-time, aswell as real-time quality control, when creating content and addingmetadata. Optibase Creator generates a range of formats, includingMPEG-2 and MPEG-4 H.264 in standard and high definition, according tobroadcasters' requirements.

Yossi Aloni, vice president of marketing at Optibase, explained,"The launch of Creator is part of Optibase's continued commitment tothe professional arena. Extending our tool set for thebroadcast/post-production market, the Creator simplifies the creationof digital content." He continued, "Unique in its class, the Creatorensures broadcast video content quality, generating files at up to150Mb/s 4:2:2 with Dolby digital."

For stand alone ingest applications or integration into MediaAsset Management applications through its powerful SDK, the Creator'srobust platform meets the demanding standards of professional contentcreation. The Creator can be seamlessly integrated with leading assetmanagement systems and video servers.

At the show, the Company will also introduce the latest release inits renowned line of streaming platforms, the MGW 230, a singlechannel encoding and streaming platform with advanced featuresincluding composite video performance and SDI audio with embeddedaudio.

About Optibase

Optibase provides professional encoding, decoding, video serverupload and streaming solutions for telecom operators, serviceproviders, broadcasters and content creators. The company's platformsenable the creation, broadband streaming and playback of high qualitydigital video. Optibase's breadth of product offerings are used inapplications, such as: video over DSL/Fiber networks, post productionfor the broadcast and cables industries, archiving; high-endsurveillance, distance learning; and business television.Headquartered in Israel, Optibase operates through its fully ownedsubsidiary in Mountain View, California and offices in Japan, China,India and Singapore. Optibase products are marketed in over 40countries through a combination of direct sales, independentdistributors, system integrators and OEM partners. For furtherinformation, please visit www.optibase.com.

This press release contains forward-looking statements concerningour marketing and operations plans. All statements other thanstatements of historical fact are statements that could be deemedforward-looking statements. All forward-looking statements in thispress release are made based on management's current expectations andestimates, which involve risks, uncertainties and other factors thatcould cause results to differ materially from those expressed inforward-looking statements. These statements involve a number of risksand uncertainties including, but not limited to, risks related to theevolving market for digital video in general and the infancy of theIPTV market in particular, competition, our ability to manage growthand expansion, general economic conditions and other risk factors. Fora more detailed discussion of these and other risks that may causeactual results to differ from the forward looking statements in thisnews release, please refer to Optibase's most recent annual report onForm 20-F. The Company does not undertake any obligation to updateforward-looking statements made herein.