Executive Summary

An established video company Vast knowledge in Encoding and Decoding technology Focused on Broadcast and IPTV markets Experienced system integration team Engineering stuff with strong broadcast and network projects background

Background

Founded in 1990, headquarters in Israel

Stable and field-proven video technology

Over 200 employees worldwide Strong US & International presence
Offices in Silicon Valley, Boston, Europe, Japan, China, Singapore

Products marketed in over 40 countries

Localization Worldwide technical support

Background

Traded on NASDAQ: OBAS April 1999: IPO, net proceeds of $16 million March 2000: SPO, net proceeds of $67million Financially solid (~$50M cash) Subsidiaries
holdings in VBox Communications and Mobixell Networks

Acquired HiTV (ECI activity) & Viewgraphics in 2000

Reference customers and Installations

JSAT IPTV Over Satellite - Japan 20 channels
FPT (BB Service Provider) Vietnam 24 Channels Headend Dakota Central Telecommunications 142 Channels Headend

Venus Corporation 134 Channels Headend

Hickory 40 Channels Headend Perry Spencer 20 Channels Headend

Reference customers and Installations

Piedmont Communications 90 Channels Headend Citizens cablevision 120 Channels Headend Scott County 120 Channels Headend Advance Technologies 45 Channels Headend Chunghwa Telecom- Taiwan's 40 channels Headend Major Operator in Japan KDDI 70 channels Headend

Optibase Projects

Pennsylvania. Illinois. North Carolina. North Dakota. Virginia. Italy. Ireland. The UK. Iceland. France. Austria. Israel. Kiev

Taiwan. Japan. Korea

Broadcast Over IP

For providing and managing live TV, pay-per-view, and NVOD channels

Management tools for creating channels, scheduling programs and defining service packages

Advanced subscriber features such as EPG, info bar, reminders, and parental control

VOD

Enables the creation and management of a full VOD service

Incorporate advertising and ecommerce features in an interactive TV service

Allows subscribers to order movies

from the comfort of their home at any time

PVR

Allows for creating and managing a network-based network or client personal-video-recording service for an optimal user experience

Enables subscribers to enjoy an entirely new TV experience by letting them watch "what they want, when they want

Home Media

Strengthening the integration of TV into the digital home network

Leverages digital media content

stored on the PC

Enabling subscribers to view pictures

and listen to music through the

television using the existing IPTV STB

KOD

Allows the delivery of a full networkbased karaoke-on-demand service

Tap into a popular new market

Enables subscribers to enjoy an athome karaoke service over existing

equipment

Head End Block diagram

Head End Block diagram

Patriot system 1.8M Dish and UHF Antenna

Head End Block diagram

ProTune UHF/VHF
tuners ADI Satellite receivers with CA decryption

Head End Block diagram

Leitch Matrix and local

control panel

AVP Patch panel

For maximum resilience

Head End Block diagram

Optibase MGW 5100

State of the art Network encoder with full redundancy
(As an Option)

Optibase
Encoder Management System and Cluster Manager

Head End Block diagram

Bit Band
Video On Demand Optional network Servers

Optibase
Ingest Station

Bit Band Bit Band

Management and load balance servers Video On Demand Vision Streaming server with 160Mbps throughput

Head End Block diagram

Wide vine Cypher real-time encryption

With supports iTV capabilities such as PVR, trick-play, stream splicing, and custom ad-insertion. Encryption for real-time unicast and multicast media formats

Head End Block diagram

Check Point fire Wall STB Boot Server

Cisco CNR or MS Win2003 Server DHCP

Head End Block diagram

Orca RightTV
Middleware and EPG & Reports Tools, With VOD, Games on demand, Network PVR, PC Portal support

Middleware Orca RightTV running on SUN V240 servers with option for redundant configuration

Head End Block diagram

Central Monitoring Solution

Zandar DX 16 splitter with Video/Audio loss real time alarm STBs for decoding 42 Plasma screens

Head End Block diagram

Central Management Application

Real time errors and status gathering from all Head end components Alerts and messages can be Emailed and logged

User Interface

User friendly interface One main control application Real time H/w Alarms Real time Video/Audio loss Alarms

Middleware Building blocks

Content Data Center
API

Content Management

Content files
multiple content files, pictures, related documents

Metadata
Name, description, rating, length, language

Package Management
Group of channels

Pricing information
Target audience, user groups

Marketing Campaigns
Buy X Get Y, Control by dates

Middleware Building blocks

Content Data Center
API

Content Management Content Security

Video DRM for on demand CA for live Games Encryption Fraud detection Encrypted Distribution

Middleware Building blocks

Content Data Center
API

Content Management Content Security

Content Distributions

Distribute from Headend to network servers Synchronize data and metadata Monitor and control

Middleware Building blocks

Content Data Center
API

Content Management Content Security

Content Distributions
API

Billing

Content/Services pricing

Multiple pricing methods (Per time, Per entry, Rental, Subscription, etc.) Multiple pricing per package Price differentiation per group VIP accounts Free trials and Promo Pre paid & post paid models

Middleware Building blocks

Content Data Center
API

Content Management Content Security

Content Distributions
API

Billing
API

Content/Services pricing

CRM

Subscriber Management

Registration offline and online Groups Personalization Sub Accounts Limitations / Parental Control Rating, Spending, Time, Exact hours History Reports

Middleware Building blocks

Content Data Center
API

Content Management Content Security

Content Distributions
API

Billing
API

Content/Services pricing

CRM
API

Subscriber Management
Delivery engines LIVE, VOD

Additional Services

Video VOD, Live feeds (channels, events) Multicast and unicast Bandwidth considerations Games / Applications Game Server Network optimization

Middleware Building blocks

Content Data Center
API

Content Management Content Security

Content Distributions
API

Billing
API

Content/Services pricing

CRM
API

Subscriber Management
Delivery engines LIVE, VOD Presentation Layer

Additional Services

HTML / Flash Multi device support PC Win9x, Win 2000, Win XP STB

Middleware Building blocks

Content Data Center
API

Content Management Content Security

Content Distributions
API

Billing
API

Content/Services pricing

CRM
API

Subscriber Management
Delivery engines LIVE, VOD Presentation Layer
API

Additional Services

PC/STB Subscriber Portal

System flow - Subscriber Log In

Access Provider Middleware
5 Get Active Contents

Application Server
4 Login / Logout 7 Active contents

Database

6 Active Contents

CA System
8 Add/remove
Entitlements

Management Server

CA Server
Licenses

9 Add/remove

Subscriber
3 Login / Logout 1 Login / Logout 2 Login / Logout

Portal

User

System flow - Content Activation

Application Server
13 Ok 4 Create
Certificate (ContentID, UserID)

5 Validate

Database

Storage
14
Content

6 Certificate,
URL)

7 Add Entitlement
STB ID, ContentID)

Middleware

Streaming Server

12 Check
Certificate (MAC, Certificate)

Activation Server
9 Activate
Content URL, Certificate

License Issuer
CA System

3 Activate
Content ContentID, UserID

8 License
User

2 Activate Content
(ContentID, UserID)

1 Select Content

Portal
11 Stream Content
(URL, MAC, Certificate)

10 Activate Content
(URL, Certificate)

Deployment Stages

Service Definition
Business and technical targets Number of registered / concurrent users Target Audience Available services Video, Games, Radio End-user device TV / PC / Both Content amount, sources Pricing schemes

Deployment Stages

System Deployment
Integration with existing network Availability Number and location of edge units

Deployment Stages (cont.)

Subscriber Portal
Branding Specific requirements for flow and graphics Customization or develop with API

Subscriber Provisioning
Registration - Customer Care and/or On-Site On-site login or Real-time authentication Integration with external user Database

Deployment Stages (cont.)

Billing
Payment method: phone bill / credit card / clearance company Input to billing system file format, API Feedback from billing system Real-time purchase confirmation

Help Desk / Customer Care

Reports per user Credit users via file

Deployment Stages (cont.)

Marketing
Specialized reports to analyze system and subscriber behavior Advertisement management portal and video Advanced pricing schemes Advanced campaigns Payment methods pre-paid, multiple Vendor contracts revenue share management

EPG data Content metadata

The Team

A qualified well experienced project and integration team with strong broadcast and network projects knowledge Professional services team of software programmers available for customization localization and on site integration with customer software components (Billing etc.)

The Solution Key Components

Encoding, Streaming, Ingest, Management

Middleware

VOD and NPVR

Conditional Access and DRM

Why Optibase

Overall Competitive price all included and more ! All components already integrated Proven and deployed technologies Feature rich solution Upgrade path to HD

The Optibase Opportunity

The right technology

Over a decade of experience in video technology

The right infrastructure

Worldwide Sales and technical support

The right financials

$50M Cash financing

The Optibase Opportunity

The right brand:

Optibase products are well recognized for their quality at the core of professional digital video solutions worldwide

The right time

Optibase integration, fast reaction team, quick, risk free deployment