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US Government Branches and Armed Forces Units Opt for New Optibase MGW Decoder
Optibase MGW Decoder Decodes Up to 12 Channels of H.264 IP Video Streams in a Compact, Dense Platform

Mountain View, California, April 20, 2009 - Optibase (NASDAQ:OBAS), a leading provider of advanced video solutions, today announced that US armed forces units and other branches of the US government have purchased its newly released MGW Decoder platform to decode H.264 and MPEG-1/2 video streams received from the GBS network.

With the GBS network and TV content providers increasingly moving to highly efficient H.264 compression in order to reduce bandwidth costs and serve more content in existing bandwidth, organizations with legacy video networks need a fast, cost effective solution for decoding the new format to baseband video.

MGW Decoder is a dense solution that decodes up to 12 streams of H.264 and MPEG-1/2 streams in a compact 2 RU rack-mountable platform and does not require any changes to the network infrastructure. The hardware-based decoding appliance offers remote management as well as an auto-start mode for fast service start during tactical deployments. MGW Decoder supports a range of video resolutions from QCIF to FD-1, frame rate of 1 to 30 frames per second and ancillary data. It is designed to decode H.264 streams for monitor walls, re-encode DVB over IP content to different formats and bit rates, and feed local legacy RF cable systems.

“Content providers enjoy clear economic benefits from upgrading to H.264. For organizations with legacy networks, however, upgrading infrastructure can be complex,” said Eli Garten, VP of Product Management at Optibase. “Our customers have responded enthusiastically to the MGW Decoder’s ability to decode 12 H.264 streams in a single compact, easy-to-deploy platform.”

Visit Optibase on stand 1042 at AFCEA Technology Showcase, DISA Customer Partnership Conference, April 20-24, 2009.

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 http://www.optibase.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.

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