Optibase Partners With HB Communications Video Systems Integrators in US Markets

Optibase (NASDAQ:OBAS), a leading provider of advanced video over IP solutions, today announced a partnership with HB Communications Inc., an award-winning provider of technology solutions for audiovisual (AV), video and professional audio needs, with over 60 years of expertise in the areas of streaming media, broadcast video, content creation, distance learning and system integration.

HB Communications will leverage Optibase’s IPTV platforms and video distribution systems as key elements in its "Total Solution Approach” to creating custom solutions that address its customers’ audio and video needs in boardrooms, conference centers, training rooms, distance learning centers, entertainment facilities, museums and houses of worship.

Through its partnership with Optibase, HB Communications can now provide its customers with a full line of video encoders, ranging from the carrier-grade MGW 5100, and the MGW FlashStreamer, which provides Internet encoding and streaming, to the exceptionally compact, rugged and cost-effective H.246 encoder - MGW Micro . Optibase encoders combine seamlessly with the EZ TV Video Portal to provide access across organizations to live, VOD and NPVR content from set-top-box, PC and Mac clients.

"We are thrilled that HB Communications has chosen to partner with us in delivering IPTV solutions.” said Joseph (Yossi) Aloni, President Optibase Inc., "Partnering with quality system integrators like HB Communications is key to our success in making innovative technologies such as real-time video streaming, H.264 format and advanced desktop video players accessible to customers who are leaders in the areas of education, corporate cost reduction, and entertainment."

"We are excited about delivering Optibase products to our customers as part of our Total Solutions Approach,” said Kevin Collins, Vice President, HB Communications. "Optibase's IPTV solutions will allow us to continue the tradition of providing our customers the highest quality systems the industry has to offer while enabling us to reach new customers that require complex carrier-grade audio-visual systems. We look forward to taking on new and challenging opportunities, with Optibase as an essential partner to our success."

About Optibase

Optibase provides video over IP solutions, specializing in video encoding, decoding and streaming for federal and state government agencies, Telco operators, enterprise organizations and the world's leading broadcast service providers. With a collection of open, standards-based products, Optibase enables its customers to take full advantage of video distribution over their IP network, ensuring superb video quality in a scale of bit-rates for simple and effective video streaming to desktops, STBs and VOD applications. For further information, please visit www.optibase.com.

About HB Communications

HB Communications Inc. has been the Northeast’s leading provider of audiovisual, video and professional audio solutions since 1946. HB’s headquarters is an innovative, 92,000 square-foot facility located in North Haven, Connecticut. With additional offices in Waltham, Massachusetts and Mountainside, New Jersey, HB has the capacity to deliver its expertise to the Northeast region and beyond. HB’s concept to completion methodology allows for custom design and seamless integration into any educational, corporate or residential environment. For further information, please visit www.hbcommunications.com.

This press release contains forward-looking statements concerning our marketing and operations plans. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. All forward-looking statements in this press release are made based on management's current expectations which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. These statements involve a number of risks and uncertainties including, but not limited to, risks related to the video technologies market in general, and the evolving IPTV market in particular, competition, our ability to manage growth and expansion, general economic conditions and other risk factors. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward looking statements in this news release, please refer to Optibase's most recent annual report on Form 20-F. The Company does not undertake any obligation to update forward-looking statements made herein.