PEERTV PLC : Trading Update, Change of Directorate

18 October 2012

PeerTV PLC

("PeerTV" or "the Company")

Trading Update

Change of Directorate

The board of PeerTV (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market, and PCB (printed circuit board) production solutions, wishes to update the market of the following developments.

Trading at S.M. Digitek Ltd. ("Digitek"), its PCB production subsidiary, has been seasonally slow in September due to the various holidays that fell into this month this year. The management of Digitek and the board now think it unlikely that this shortfall will be made up during October.

PeerTV Ltd  is experiencing new hardware issues in its legacy product, the ES550 set top box. Failures occurred on an unusual number of boxes and after only a few months in service. None of the boxes showed any problems during PeerTV Quality Assurance inspection. PeerTV now suspects that a subcontractor replaced a resistor component with a cheaper copy during production without receiving PeerTV approval. The subcontractor has indicated its willingness to rectify the situation, but the means by which this will occur have not yet been agreed. The management believes that Digitek can accomplish the rectification of this problem within approximately one month and with an estimated direct cost of $30,000. In the meantime, the client that ordered the Android boxes has put this order on hold until this issue has been dealt with.

The result of these developments is that the cash position of the Company will be tight in November, notwithstanding the recently completed fundraising, also announced this morning, which raised £663,500 (before expenses), £505,800 (net of expenses).  The cash position is presently expected to be managed through invoice discounting.

Moshe Bartov, CEO of PeerTV Ltd. and a member of the board has tendered his resignation and will shortly leave the Company to pursue other opportunities. Avi Vermus, the CEO of Digitek will act as interim CEO of PeerTV Ltd and take responsibility for any restructuring with a view to realizing cost savings.

The board will update the market as soon as it has decided the future organization of the Company.

Further enquiries:

PeerTV Plc

Leon Nahon, Chairman                                                                                           [phone]

Libertas Capital Corporate Finance Limited

Thilo Hoffmann/Andrew McLennan                                                           [phone]

Peterhouse Corporate Finance

Jon Levinson/Eran Zucker                                                                               [phone]

Bishopsgate Communications

Nick Rome/Sam Allen                                                                                    [phone]

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