PTV Peertv

TIDMPTV

RNS Number : 2255Q

PeerTV PLC

28 August 2014

28 August 2014

PeerTV PLC

("PeerTV" or the "Company")

Purchase of Capital Equipment and Update Regarding Distributor

PeerTV plc (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 regarding developments in both of its business units.

The Company announces that its subsidiary, Digitek SMT Assemblies Limited ("Digitek"), has placed an order to purchase an additional SMT (Surface Mount Technology) production line at a cost of approximatelyGBP320,000. The line is expected to become operational in the fourth quarter of 2014.

Avi Vermus, Chief Executive of PeerTV, commented: "We believe that the new SMT line will enhance Digitek's position amongst SMT companies in Israel. Its features include advanced technologies, which allow for component placing speeds that are faster than Digitek's existing lines and a shorter set up time. As such, we expect that the successful implementation of the new SMT production line will reduce Digitek's manpower costs. The introduction of the new SMT line will enable Digitek to deal with components of many types and sizes, which we expect will increase our target customer base. Importantly, through increased efficiency and expected cost reductions, we believe that Digitek may be able to increase its price competitiveness and capture a larger market share".

Digitek will pay for the equipment for the new production line over a period of 35 months.

The Company's management is confident that the new SMT line will allow Digitek to significantly increase its overall production capacity and attract new customers and projects in key industrial sectors, including medical equipment and military, for which Digitek already holds the required standards approvals.

The Company also wishes to announce that the final agreement for the appointment of a distributor for the US and Irish markets for the PeerTV OTT product, referred to in the announcement of 29 May 2014 has not yet been signed. Both sides have agreed to extend the original 90 day deadline. The discussions between the parties are progressing. The directors now expect the final agreement to be signed during the fourth quarter of 2014, although this cannot be guaranteed.

Further enquiries:

PeerTV Plc

Eitan Yanuv, Chairman

Tel: +972 974 07315

Daniel Stewart & Company (Nomad and Broker)

Emma Earl / David Coffman

Tel: +44 (0)20 7776 6550

This information is provided by RNS

The company news service from the London Stock Exchange

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