Optibase Loans $1M to Media 100Optibase Loans $1M to Media 100

Optibase announces $1M secured debtor-in-possession (DIP) financing for Media 100 to fund operations under its acquisition is closed

March 22, 2004

2 Min Read

HERZLIYA, Israel -- Optibase Ltd. (NASDAQ:OBAS), a leader in digital video encoding and streaming solutions, and Media 100 Inc. (OTCBB: MDEAE.OB) announced today that they have executed a definitive loan agreement to provide up to $1 million of secured debtor-in-possession (DIP) financing, and an asset purchase agreement which, subject to court approval, calls for Optibase to buy substantially all the assets of Media 100 for $2.5 million (less the amount of any funding advanced).

In accordance with its previously announced plan to facilitate the transaction, Media 100 has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code in United States Bankruptcy Court for the District of Massachusetts (the “Court”). The sale will be subject to various conditions, including approval by the Court in the Chapter 11 case. Optibase and Media 100 have requested that the Court, upon expedited hearing, enter an order setting forth sale procedures, including notice and overbid provisions which would be applicable to the transaction.

“Following approval by the Court, Optibase intends to keep Media 100 activity intact as a unit in Optibase in order to continue the development, sales, and support of the Media 100 products,” said Tom Wyler, Chief Executive Officer and Chairman of the Board of Optibase. “We strongly believe in the capabilities of the Media 100 team of employees and their vision for 844/X and Media 100 HD, and believe that with our financial strength the Media 100 line of products will be able to realize their potential.”

“The Optibase deal gives Media 100 strong financial support during the Chapter 11 proceeding in order to drive the market penetration of 844/X Version 3 and the debut release of Media 100 HD,” said John Molinari, President and Chief Executive Officer of Media 100. “We believe that with our substantial, five-year technology investment, Optibase will acquire products that will be cutting edge and allow for strong competition in the market.”

Optibase Ltd.

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