Optibase Reports Q1

HERZLIYA, Israel -- Optibase, Ltd. (Nasdaq:OBAS - News) a leader in advanced digital video solutions, today announced financial results for the first quarter ended March 31, 2006.

Revenues for the first quarter ended March 31, 2006 were $4 million compared with $3.9 million in the fourth quarter of 2005 and $7 million for the same period a year ago.

Net loss for the quarter ended March 31, 2006, was $1.3 million or $0.09 per basic and fully diluted share, reflecting for the first time the adoption of FAS123R relating to share based compensation expenses. This compares with a net loss of $3.2 million or $0.24 per basic and fully diluted share for the fourth quarter of 2005, and with a net loss of $174,000 or $0.01 per basic and fully diluted share for the first quarter of 2005. Weighted average shares outstanding used in the calculation for the periods were approximately 13.4 million for first quarter of 2006 and 13.2 million for both the first and fourth quarters of 2005.

As of March 31, 2006, the Company had cash, cash equivalents, long term investments in marketable securities and other financial investments, net, of $44.2 million, and shareholders' equity of $44.2 million.

Danny Lustiger CFO of Optibase, said, "During the first quarter, we increased our efforts to strengthen our position in the IPTV and video technology markets and continued to explore ways in which to expand our customer base.

"In the Asia Pacific market, we are proud to be one of the first companies to help bring IPTV services to India. Our recently opened office in India will support our new customer MTNL as it rolls out triple play services using Optibase's technology in Delhi and Mumbai, in addition to enhancing our sales and marketing activities in this important region."

He concluded: "While the IPTV market is slow to mature, we stand by our strategy to be a significant player in this market, a strategy that is supported by our longstanding expertise in digital video technologies and sound financial position."

Optibase Ltd. (Nasdaq: OBAS)