KIT digital Files for Public Offering of Common Stock

Proceeds Intended Primarily to Support Opportunistic, Accretive Acquisitions and Re-Pay Outstanding Debt

• Press Release
• Source: KIT digital, Inc.
• On 7:30 am EDT, Wednesday June 24, 2009

DUBAI, UNITED ARAB EMIRATES and NEW YORK, NY--(Marketwire - 06/24/09) - KIT digital, Inc. (OTC.BB:KDGL - News), a leading global provider of on-demand software solutions for managing and monetizing IP-based video assets, has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for a proposed underwritten public offering of the company's common stock. The company expects to effectuate its listing on the NASDAQ Capital Market concurrently with this offering.

Related Quotes

Symbol	Price	Change
KITD	9.84	+0.22

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KIT Media Ltd., the company's largest single stockholder, controlled by KIT digital's chairman and CEO, Kaleil Isaza Tuzman, intends to purchase at least $3.35 million of common stock in this offering, at the same price and terms as other investors in the offering. KIT digital President Gavin Campion is also an investor in KIT Media, as are several members of the company's board of directors.

The company intends to use the net proceeds of the offering primarily to finance accretive acquisitions or investments in competitive businesses, products and technologies as a part of its growth strategy. The company also intends to use a portion of the proceeds to repay a $1.5 million outstanding senior secured term loan, as well as for working capital and general corporate purposes, including a small amount -- less than $1.0 million -- to potentially pre-settle future equity earn-out payments to shareholders of previously acquired companies.

The company plans to begin selling the offering during the second half of July and close the offering in the first half of August, with the actual time frame dependent upon the SEC review of the registration statement. Further information regarding the registration statement is available via the SEC's website at www.sec.gov, under the company's CIK number: 0001076700.

This press release does not constitute an offer to sell or solicitation of an offer to buy any securities. Any such offer may be made only pursuant to the company's final prospectus for the offering and only in states in which the offering is registered or exempt from registration and by broker-dealers authorized to do so. The securities to be offered by the prospectus are speculative and involve a high degree of risk.

About KIT digital

KIT digital, Inc. (OTC.BB:KDGL - News) is a leading, global provider of on-demand content management software solutions for managing IP-based video assets. Through its end-to-end platform, KIT digital works closely with consumer brands, content providers and telcos to maximize the value of video content via the Internet, mobile networks and IPTV set-top boxes. The KIT VX platform allows clients to ingest, manage, distribute and publish digital video content, build online/mobile communities and integrate advertising. KIT offers businesses a full range of interactive marketing solutions and KIT clients can access approximately 80 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include Associated Press, Disney-ABC, General Motors, IMG, Kmart, NASDAQ, News Corp, RCS, Telefonica and Verizon. KIT digital has principal offices in Dubai, Melbourne (Australia), Prague, Toronto and London. For additional information, please visit www.kitd.com.

Forward-Looking Statements

This press release contains certain "forward-looking statements" related to the businesses of KIT digital, Inc. which can be identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including uncertainties relating to product development and commercialization, the ability to obtain or maintain patent and other proprietary intellectual property protection, market acceptance, future capital requirements, regulatory actions or delays, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our public filings with the U.S. Securities and Exchange Commission. KIT digital, Inc. is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

 
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