HERZLIYA, Israel -- Optibase Ltd. (NASDAQ: OBAS), a leader in digital video encoding and streaming solutions, today announced execution of a non-binding term sheet (the “Term Sheet”) with Media 100 (OTCBB: MDEA.OB) providing for negotiation of a debtor-in possession loan by Optibase to Media 100, and the sale to Optibase of substantially all of the assets of Media 100 Inc. in a pre-packaged bankruptcy proceeding, under title 11 of the United States Bankruptcy Code (“Chapter 11”) (the "Transaction"). At this time, there is no binding agreement between the Company and Media 100 for the Transaction. Moreover, any such future agreement and sale would be subject to various conditions precedent, including approval by the Court in the Chapter 11 case. The parties are under no obligation to pursue or complete the Transaction unless and until they have executed a definitive agreement ("Agreement") and the Court has approved the Transaction.

This Transaction, once filed with the bankruptcy court and given an interim order by that court, among other things to secure the debtor-in-possession financing, will allow Media 100 to continue to develop, sell and support its 844/X editing-compositing systems, newly-introduced Media 100 HD system, Media 100 i, and other content design products.

“Media 100 has created differentiated and valuable technology that we believe can flourish with the right backing,” said Tom Wyler, Chief Executive Officer and Chairman of the Board of Optibase. “If the asset purchase by Optibase is approved by the bankruptcy court, the advanced products that Media 100 has developed would represent a growth opportunity for Optibase.”

“With an extremely strong balance sheet, Optibase gives Media 100 the financial wherewithal to continue engineering and marketing 844/X and Media 100 HD and compete aggressively in the market,” said John Molinari, president and chief executive officer of Media 100. “The deal is timed well to support us just as we begin first shipments of our new 844/X Version 3 release and prepare to deliver our first implementation of 844/X technology on the Apple Power Mac G5 platform—Media 100 HD.”

Optibase Ltd.