Gross revenues up 57% and net loss per share improved 90% vs. Q3 2007

Operating EBITDA loss improved 30% and net loss per share improved 50% vs. strong Q2 2008

Company confirms turning monthly operating EBITDA positive in Q4 2008

DUBAI, United Arab Emirates — November 17, 2008 KIT digital, Inc. (OTC BB: KITD), a global provider of IP-based video enablement technologies and video-centric interactive marketing solutions, reported financial results for the third quarter ended September 30, 2008.

Q3 2008 Financial Results

Financial results in this release are quoted in U.S. dollars, although a material portion of the company’s revenue is earned in other currencies.

For the third quarter of 2008, revenue totaled $5.4 million, as compared to $5.5 million in the previous quarter and $3.4 million in the same quarter a year ago. The company’s revenues include software license and maintenance fees, streaming and data fees, technical and creative service charges, software set-up fees, and advertising-related income. 

During the third quarter, the U.S. dollar appreciated versus the other currencies in which the company generates revenues. On a like currency basis, KIT digital increased revenues during the quarter. The company employs a “natural hedging” strategy in which management endeavors to match revenue generated in a given currency against the associated client delivery costs denominated in the same currency. This strategy results in approximately neutral cash-flow impact from foreign exchange movements, despite changes in reported gross revenues.

The net loss for the quarter was $2.6 million or ($0.02) per basic and diluted share, compared to a loss of $3.3 million or ($0.04) per basic and diluted share in the previous quarter and a loss of $8.2 million or ($0.21) per basic and diluted share in the third quarter of 2007.

The net loss for the quarter reflects several non-cash items, including $188,000 in stock-based compensation, compared to $73,000 in the previous quarter and $1.2 million in the same year ago quarter. Additionally, the net loss included restructuring charges of $162,000 relating to employee termination and facility closing costs, as compared to $146,000 in the previous quarter and none in the third quarter of 2007.

For the third quarter, operating EBITDA, a non-GAAP term, was a loss of $1.57 million, as compared to a loss of $2.24 million in the previous quarter and a loss of $6.64 million in third quarter of 2007. Operating EBITDA as defined by the company as the loss before non-cash stock based compensation, restructuring and non-recurring costs, impairment of property and equipment and depreciation and amortization. Management reports the company is turning operating EBITDA positive during the course of the current fourth quarter, and is optimistic that the company will turn free cash-flow positive by the end of this year or in beginning of the first quarter of 2009.

The weighted average common shares outstanding for the quarter totaled 114,557,722, as compared to 82,800,972 in the previous quarter and 38,907,293 in the third quarter of 2007. The common shares outstanding at November 14, 2008 totaled 114,609,788.

At the end of the third quarter of 2008, the company had a cash position of $6.1 million. Management believes the company possesses more than sufficient cash to finance its organic growth plan through to profitability, as well as to make selective acquisitions.

On October 5, 2008, subsequent to the end of the third quarter of 2008, the company acquired 100% of the capital stock of IP-based video enablement company Visual Connection, a.s.,the purchase of which included a $2.5 million upfront cash payment. On November 12, 2008, the company received $1.4 million in straight (non-convertible) debt financing from Genesis Merchant Partners, L.P., secured by accounts receivable, inventory and other assets. The proceeds of this debt facility may be used for general corporate purposes. As of November 14, 2008, the Company had a cash position of $5.2 million.

Even after accounting for an additional 20%+ strengthening of the U.S. dollar since September 30, 2008 versus the Czech koruna, the Australian dollar and other currencies in which KIT digital does business, consolidated fourth quarter 2008 revenues are estimated to be at least $8.5 million. In the absence of the strong U.S. dollar, management estimates that fourth quarter 2008 revenues would have been more than $10 million.

Management Commentary

“The third quarter represented substantial progress across the board,” said Kaleil Isaza Tuzman, chairman and chief executive officer of KIT digital. “Despite the generally slow Summer period, a faltering economy, a strong U.S. dollar and the ongoing rationalization of acquired assets, we grew our underlying business on a local currency basis versus a banner second quarter, and ended the third quarter with a September monthly operating EBITDA loss of approximately $195,000—versus well over $2 million of monthly burn at the beginning of the year. We are crossing over to positive monthly operating EBITDA during the current fourth quarter, just as we committed to our shareholders at the beginning of this year.”

Gavin Campion, president of KIT digital, commented: “At KIT digital, we take a financially disciplined and bottom-line approach. We generally leave the small and medium-size enterprise (SME) market to our competitors, while we go after higher-margin, enterprise clients, frequently in emerging markets. During the third quarter, we won a number of key new accounts and made great progress on the integration of our product lines and acquired businesses—activities which take time to develop and will bear financial fruit in future quarters.”

“We started 2008 at an annualized revenue run-rate of approximately $12 million,” continued Campion. “Even after the appreciation of the dollar in recent months, we are currently operating at an annualized revenue level of approximately $35 million. Looking forward to 2009, we will continue to leverage our first-mover advantage as the only truly device-agnostic IP video solutions provider, able to deliver and manage video on the browser, the mobile device and the IPTV-enabled set-top box or game-box.”

Q3 2008 Operational Highlights

• Signed over 20 new enterprise clients across major geographies—Asia/Pacific, Europe, the Middle East & Africa (EMEA), and the Americas;
• Acquired Morpheum, one of Asia’s leading providers of web-based content management systems—which is already in the process of being integrated with the KIT digital’s “VX” video management platform;
• Created a critically-acclaimed, custom-built Web environment for TV innovator Seth MacFarlane and his new collection of web shorts, titled ‘Seth MacFarlane’s Cavalcade of Cartoon Comedy’;
• Launched a North American IPTV set-top box deployment for TV2Moro, a new company created by leading players in Arab media production and distribution;
• RCN, a leading broadcaster in Latin America, choose KIT digital to provide a broad range of streaming media initiatives;
• An estimated 91% of KIT digital revenue in the third quarter of 2008 was generated in the Asia/Pacific and EMEA geographies, and approximately 9% from the Americas.

Conference Call

KIT digital will hold a conference call to discuss Q3 2008 results at 10:00 a.m. Eastern time on Tuesday, November 18, 2008. To participate in the call, please dial +1 (800) 288-8968 (North America) or +1 (612) 332 0725 (outside of North America). Note that these call-in numbers have changed since the company’s last press release; the previously disseminated call-in numbers will be answered and forwarded to the numbers above. Please dial into the call five minutes prior to the scheduled start time. If you have any difficulty connecting to the conference call, please contact the Liolios Group at +1 (949) 574-3860.

For interested individuals unable to join the live conference call, a replay of the call will be available an hour after the conclusion of the live call through December 2, 2008 by dialing into +1 (800) 475-6701 (North America) or +1 (320) 365-3844 (outside of North America). The access code for this replay is 970370. In addition, an online archive of the call will be available for 30 days afterwards through the Investor Relations section of the Company’s website at www.kitd.com.

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About KIT digital

KIT digital, Inc. (OTCBB: KITD) is a leading, global provider of proprietary IP-based video enablement technologies and video-centric interactive marketing solutions. 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 publish, manage and distribute 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 100 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include ABC Disney, Associated Press, China Mobile, General Motors, IMG, Kmart, NASDAQ, News Corp, RCS, Telefonica and Verizon. KIT digital has principal offices in Dubai, Melbourne (Australia), Prague, Stockholm, New York and London. For additional information, visit www.kit-digital.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 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.

To view financial statements please click here

Management cites strong 4Q outlook, acquisition-related synergies and strategic roadmap for 2009

NEW YORK and DUBAI, United Arab Emirates, Nov. 3– KIT digital, Inc. (OTC Bulletin Board: KITD), a leading global provider of IPTV enablement technology and video-centric interactive marketing solutions, will discuss recent acquisitions and operational results, and present its roadmap for business growth in 2009 with shareholders at the 2008 Annual Meeting of Stockholders. The Annual Meeting will be held at the Harvard Club, Weld Room, 3rd Floor, 27/35 West 44th Street, New York, New York, on Thursday, November 6, 2008, beginning at 10:00 a.m. EST.

As this is the first general stockholders’ meeting to be held by the company since new management assumed control of the company on January 9, 2008, chairman & CEO Kaleil Isaza Tuzman and president Gavin Campion will review the developments of the last 10 months, including the consolidation of video-centric interactive marketing agency Sputnik and the acquisition of three accretive, synergistic businesses — with particular focus on the Visual Connection acquisition announced on October 7, 2008 — which have combined to make KIT digital the leading international video-over-IP solutions provider. Messrs. Isaza Tuzman and Campion will further discuss and clarify points touched on during the investor conference call of October 16, 2008, including:

• Strong 4Q outlook, with positive operating EBITDA crossover during quarter as planned, and management attention now turned towards near-term positive free-cash flow target;
• Revenue increase from approximately US$12 million in run-rate at the start of 2008 to current annualized run-rate of over US$35 million;
• 3Q gross revenues essentially flat over banner 2Q on a U.S. Dollar basis — due to foreign currency depreciation during the period — with slight improvement in net revenues and strong improvement in EBITDA;
• Current revenues roughly spread as follows geographically: 55% from EMEA (Europe, Middle East & Africa), 37% from Asia/Pacific, and 8 percent from the Americas;
• Broadened product capabilities as a result of Visual Connection acquisition, including content delivery and IP-based network operations, recording and editing suite deployments.

Through the rest of this quarter and into early 2009, management expects to concentrate on consolidating operations, realizing further cost and product synergies resulting from recent acquisitions, and engaging new enterprise customers. At the Annual Meeting, management will discuss the Company’s business plan for 2009, which includes:

• Furthering its position as a full-service IP-based video solution provider addressing clients in large vertical markets, including: media and publishing, automotive, financial services, consumer and packaged goods, and government;
• Focusing on global 1000 companies and product capability cross-selling;
• Continuing to position KIT digital as a globally-minded, P&L-oriented strategic partner to its enterprise clients — helping them extend their brands and monetize mobile and online video;
• Extending its first-mover advantage in the IP-based video enablement space as the only truly device-agnostic solutions provider — able to deliver and manage video on the browser, the mobile device and the IPTV-enabled set-top box or game-box;
• Hiring world-class sales, client services and product development executives in key territories;
• Continuing a “natural hedging” approach to foreign exchange movements: balancing regional revenues with regional costs and currencies.

During 2009, management will concentrate on revenue and cost synergies resulting from recent acquisitions and the expansion of KIT digital’s technology platform and client base. The Company may also execute selective, accretive strategic acquisitions which complement the Company’s geographical and product footprint. As previously stated, management is examining the advantages of a potential reverse stock split and a concomitant move to a more recognized stock exchange. Other than the per-share trading price of its stock, management believes the Company qualifies for such a listing insofar as revenues, net assets, current SEC filings and other requirements are concerned.

About KIT digital

KIT digital, Inc. (OTCBB: KITD - News) is a leading, global provider of proprietary IP-based video distribution technologies and video-centric interactive marketing solutions. 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 publish, manage and distribute 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 100 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include ABC Disney, Associated Press, China Mobile, General Motors, IMG, Kmart, NASDAQ, News Corp, RCS, Telefonica and Verizon. KIT digital has principal offices in Dubai, Melbourne (Australia), Prague, Stockholm, New York and London. For additional information, visit http://www.kit-digital.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 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.

Media Contact:
Jonathan Cutler
Verse Communications
+1.818.981.3023
jonathan@verseinc.com

Roll-out will focus on multi-dwelling units (MDUs) which are underserved by satellite TV, starting with Arabic Language content in the United States and Canada

DUBAI and CANNES, Oct. 15 — KIT digital, Inc. (OTC Bulletin Board: KITD), a leading global provider of IPTV enablement technology and video-centric interactive marketing solutions, announced today that it has been selected by TV2Moro, a new firm backed by several top-tier ethnic television aggregators and producers, to deploy a new IPTV set-top box (STB) service to deliver programming to ethnic consumers in North America. The TV2Moro/KIT digital partnership has a minimum term of 48 months, and involves platform development fees, ongoing platform licensing fees, and a revenue share model based on the number of subscribers adopting the service.

TV2Moro’s initial commercial roll-out will include a top-tier bouquet of Arabic language channels, and is scheduled for the beginning of 2009, with a test phase (or commercial “alpha”) taking place now. During the MIPCOM audiovisual conference taking place now in Cannes, France, KIT digital is performing live product demonstrations of the TV2Moro STB platform for prospective broadcaster and telecommunications partners.

“The TV2Moro partnership is a harbinger of the future for KIT digital,” commented Kaleil Isaza Tuzman, chairman and chief executive officer of KIT digital. “We are applying a network- and device-agnostic approach to all of our client partners — thinking through platform development and distribution across IPTV set-top boxes, mobile phones and the browser. We see ourselves as the only player in the market with this big-picture approach and capability - making us more relevant to our clients’ bottom-line than browser-only, video- player and online tools-focused companies.”

TV2Moro anticipates revealing its full content slate, as well as its financial and commercial backers, during the National Association of Television Program Executives (NATPE) conference in Las Vegas, starting January 26, 2009. TV2Moro anticipates launching the service with at least 20 channels, and expects to roll-out other ethnic packages (such as Russian and Spanish-language) through 2009 and 2010.

The Arabic language package launch is expected to make an immediate impact within the Arab-American and Arab-Canadian communities, as it will offer hard- to-get, TV-quality Arabic programming at attractive price points. The TV2Moro service will feature a company-installed, easy-to-operate set-top box which will “look” and “feel” like a standard cable box, and will work with all broadband Internet providers. The TV2Moro service will support live programming, video-on-demand, pay-per-view and digital video recording functionalities. Later versions of the TV2Moro set-top box may also function as an IP telephony device.

KIT digital was selected for its end-to-end service, complete product portfolio, enterprise customer service, and content acquisition expertise. KIT digital is managing the entire fulfillment, platform technology and IPTV broadcasting/streaming components of the TV2Moro system, including but not limited to: capture and ingest of satellite and IP-based content, transcoding and encoding, meta-tagging, configuration, programming interface and streaming (live and VoD/DVR). KIT digital will also manage, through an outsource service provider, the in-home installations of the product, and handle inventory management and tier 2 customer service support. Future versions of the TV2Moro STB service will be integrated with online and mobile offerings, in a seamless “home and away-from-home” entertainment solution.

Gavin Campion, president of KIT digital, continued, “For us, it’s all about developing AND monetizing IP-based video platforms for our clients. The TV2Moro deal is an enterprise deal for us by any definition-be it team effort, revenues, gross contribution etc. However, it is structured in such a way so that we are very motivated to see TV2Moro succeed commercially, and share in that success.”

Ethnic media is an enormous market that is well understood by the KIT digital management team. More than 65 million people in North America prefer to consume media in a language other than English, and about a quarter of all U.S. adults consume some type of ethnic media, according to a recent Knight Foundation poll. Today, satellite TV is the dominant modality in the ethnic television market in the United States, but satellite TV is richly priced and most often inaccessible in MDUs. Satellite TV is also one-way, lacking the interactive and social media components available through IPTV.

The TV2Moro “alpha” version is being demonstrated by KIT digital in booth a04.20 at the MIPCOM audiovisual conference in Cannes, France through October 16, 2008.

About TV2Moro

TV2Moro is an ethnic programming IPTV distribution network focusing on diaspora communities in North America, Australia and Europe. TV2Moro executives and investors come from several top-tier ethnic television aggregators and producers. TV2Moro is currently in an “alpha” deployment of its Arabic channel bouquet and will launch the commercial “beta” of its Arabic package on or about January 1, 2009. TV2Moro anticipates revealing its initial content slate, as well as its commercial partners and financial backers, during the National Association of Television Program Executives (NATPE) conference in Las Vegas, starting January 26, 2009. In the future, you will find information on TV2Moro at http://www.tv2moro.com.

About KIT digital

KIT digital, Inc. (OTCBB: KITD) is a leading, global provider of proprietary IP-based video distribution technologies and video-centric interactive marketing solutions. 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 box solutions. The KIT VX platform allows clients to publish, manage and distribute digital video content, build online/mobile
communities and integrate advertising. The Company offers businesses a full range of interactive marketing solutions and KIT clients can access approximately 100 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include News Corp., Verizon, IMG, China Mobile, Telefonica, Vodafone, K-Mart, Coles, NASDAQ, Hummer and RCS. KIT digital has principal offices in Dubai, Melbourne (Australia), Stockholm, Prague, New York and London. For additional information, please visit http://www.kit-digital.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 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.

Media Contact:
Jonathan Cutler
Verse Communications
818.981.3023
jonathan@verseinc.com

KIT digital will support worldwide digital distribution for global entertainment network

DUBAI and LOS ANGELES – October 14, 2008 KIT digital, Inc. (OTCBB: KITD), a leading global provider of IPTV enablement technology and video-centric interactive marketing solutions, announced today that the company has been selected by Bennett Media Worldwide, a leading provider of men’s lifestyle programming, to build and promote the company’s online and mobile outlets—including its MEN7 web portal. Through its global content syndication group, KIT digital will offer Bennett additional syndication outlets for MEN7 content to a variety of national and international Internet and mobile partners. KIT digital’s “VX” digital asset management platform will provide MEN7 with a best-of-breed customer-facing video portal, while giving Bennett the ability to publish its content in localized formats and protocols to partners globally. KIT digital’s global footprint will enable MEN7 to access new markets in syndication, and provide its content to mobile handsets—a key component of this deal.

A wholly-owned subsidiary of The Bennett Group, Bennett Media Worldwide is a lifestyle and entertainment production company delivering compelling and dynamic high-definition television programming through its MEN7 network to affluent men in the 25 to 54 year old demographic. MEN7 is currently distributed through traditional television carriage in over 140 countries, making it amongst the most watched programming in the world for this demographic. Including “The MEN7 Show,” MEN7.TV produces seven high-definition broadband-oriented series, in both short and long-form, including “The Extremists,” “Beyond The List,” “Billionaires Car Club,” “Bikini Destinations” and “Eventurer”.

Kaleil Isaza Tuzman, chairman and chief executive officer of KIT digital, commented, “We are very pleased to have been selected by The Bennett Group in the context of a competitive bidding process. The MEN7 partnership is a great example of our ability to assist content providers in harnessing the power of both online and mobile distribution on a global basis—a variegated monetization path which we view as essential in today’s markets but we don’t believe is offered with the same breadth or depth by any of our competitors.” The Bennett Group’s chief executive officer, Casey Bennett, added, “We believe that in KIT digital we have found the perfect partner to assist MEN7 navigate and thrive in the digital environment. KIT digital has the right combination of technology and syndication services to provide MEN7 with a platform to successfully monetize its content on both a domestic and international level. We look forward to a long and productive partnership.”

The parent company of MEN7 was founded by Casey Bennett and is co-owned by broadcast pioneer Robert Bennett—formerly the single largest owner of TV and radio stations in the U.S., and former President of Metromedia Broadcasting, forerunner to the Fox Network.

KIT digital has emerged as one of the world’s top video interactive firms, having been called upon by industry heavyweights such as Associated Press, Telefonica, ABC Disney, News Corporation and Verizon to bolster online and mobile TV platforms and increase audience reach and market share through creative cutting-edge, consumer-facing IPTV interfaces. For more information on KIT digital’s product and service capabilities, please visit www.kit-digital.comor call +971-4-364-3549. KIT digital is performing live product demonstrations for its online, mobile and IPTV set-top box solutions in booth a04.20 at the MIPCOM audiovisual conference in Cannes, France through October 16, 2008.

About MEN7
MEN7, a part of Bennett Media Worldwide, is a lifestyle and entertainment network delivering compelling and dynamic high-definition television programming for affluent and active managed 25-54. MEN7 is distributed across multiple platforms, including a weekly flagship high-definition television series on ION Media Networks and the MEN7.tvbroadband website, and daily episodes are currently syndicated worldwide to selected broadband, IPTV and mobile distribution partners.
The Bennett Group is a fully integrated entertainment studio encompassing four distinct divisions: Bennett Media Worldwide programs are distributed in 140 territories and exhibited for sale at events including NATPE, MIPTV, MIPCOM and SPORTEL. Bennett Productions is the content development and production division, including state-of-the-art soundstages in the Los Angeles area. Bennett Music offers stereo and full digital 5.1 surround sound music in its audio production studios. Bennett HD/LA is among the few fully high-definition post-production facilities in Los Angeles. For additional information, please visit www.bennettgroup.tv.

About KIT digital
KIT digital, Inc. (OTCBB: KITD) is a leading, global provider of proprietary IP-based video distribution technologies and video-centric interactive marketing solutions. 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 and mobile networks. The KIT VX platform allows clients to publish, manage and distribute 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 100 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include News Corp.,
Verizon, IMG, China Mobile, Telefonica, Vodafone, K-Mart, Coles, NASDAQ, Hummer and RCS. KIT digital has principal offices in Dubai, Melbourne (Australia), Stockholm, Prague, New York and London. For additional information, visit www.kit-digital.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 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.

Media Contact:
Jonathan Cutler
Verse Communications
818.981.3023
jonathan@verseinc.com

DUBAI, United Arab Emirates, Oct. 14 - KIT digital, Inc. (OTC Bulletin Board: KITD - News), a leading global provider of IPTV enablement technology and video-centric interactive marketing solutions, announced on October 7, 2008 that it had acquired privately held Visual Connection, a.s., a digital media and IPTV solutions provider for major media outlets in Europe and the Middle East. KIT digital announced that the acquisition was pro forma accretive, and that the combined company is now generating in excess of $40 million in revenue on an annualized basis, with positive operating EBITDA.

The company will host a conference call to discuss the acquisition, management’s strategic plan and the current market environment at 10:30 a.m. ET/ 4:30 p.m. CET on Thursday, October 16, 2008. To participate in the call, please dial +1 (800) 762-6568 (North America) or +1 (480) 248-5088 (outside of North America). Please dial into the call at least five minutes before the scheduled start time to allow for processing time.

For interested individuals unable to join the live conference call, a replay of the call will be available beginning Thursday, October 16, 2008, one hour after the initial call, until Thursday, October 30, 2008 at 5:00 p.m. ET. To access the replay, please dial +1 (800) 475-6701 (North America) or +1 (320) 365-3844 (outside of North America). The access code for the audio replay is 964890.

About KIT digital

KIT digital, Inc. (OTCBB: KITD - News) is a leading, global provider of proprietary IP-based video distribution technologies and video-centric interactive marketing solutions. 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 publish, manage and distribute 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 100 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include ABC Disney, Associated Press, China Mobile, General Motors, IMG, Kmart, NASDAQ, News Corp, RCS, Telefonica and Verizon. KIT digital has principal offices in Dubai, Melbourne (Australia), Prague, Stockholm, New York and London. For additional information, visit http://www.kit-digital.com.

Media Contact:
Jonathan Cutler
Verse Communications
818.981.3023
jonathan@verseinc.com

Acquisition of software, digitization services & content delivery network solidifies KIT digital’s European leadership and extends global IPTV Capabilities

Combined company is EBITDA-positive at more than US$40 million in annualized revenue

DUBAI and PRAGUE, Czech Republic, Oct. 7 - KIT digital, Inc. (OTC Bulletin Board:KITD - News), a leading global provider of IPTV enablement technology and video-centric interactive marketing solutions, has acquired privately-held Visual Connection, a.s., a digital media and IPTV solutions provider for major media outlets in Europe and the Middle East. Financial figures below are in U.S. dollars unless otherwise noted.

Through its headquarters in the Czech Republic and sales offices in Bratislava (Slovakia), London, and Dubai, Visual Connection offers content digitization, localization and IP-based editing, storage, video players, and content streaming, as well as set up of digital network operations centers (NOCs) for television broadcasters, government entities, healthcare providers and telecommunications companies.

On October 5, 2008, KIT digital acquired 100% of the outstanding capital stock of Visual Connection (on a working capital and debt-neutral basis) for $2.5 million, paid in cash at the time of the closing. Subject to performance thresholds, KIT will pay an additional $7.5 million in KIT digital common shares or cash (or a combination thereof), at KIT’s sole election, over a 24-month period. The performance benchmarks comprise certain net revenues and EBITDA targets for Visual Connection, as well as the retention of certain key personnel. The approximately 65 employees of Visual Connection will receive two million cash-exercise warrants or options in aggregate, vesting over four years, which are subject to the terms of KIT digital’s employee incentive stock plan.

Management believes the terms of the acquisition will be immediately accretive. Visual Connection generated an estimated $13.0 million in revenues and more than $1.0 million in EBITDA during the trailing 12 months ended August 31, 2008. Looking forward, management estimates the operations of Visual Connection will contribute revenue and EBITDA of more than $4.0 million and $275,000, respectively, in the fourth quarter of 2008, exclusive of any operational or cost-savings synergies.

Prior to this acquisition, KIT was on pace to reach positive operating EBITDA position on a standalone during the course of the current fourth quarter. As a result of the acquisition (without factoring in the benefit of any revenue or cost synergies), management believes the combination of Visual and KIT is immediately operating EBITDA-positive, generating more than $40 million in revenues on an annualized basis. With now more than 400 clients across 25 countries, the regional revenue breakdown for the combined company is estimated to be 55% in EMEA (including South Asia); 37% in Asia/Pacific; and 8% in the Americas. The company expects to have at least a $5.0 million net cash position pro forma of the Visual Connection acquisition.

KIT digital is not issuing any new capital stock in connection with the closing of this acquisition, and continues to estimate 145.6 million shares outstanding pro forma of past share purchases and current registration processes. Based on the closing price of KIT’s stock on Monday, October 6, 2008, $0.25, the pro forma market capitalization of the company is approximately $36.4 million.

Benefits of the acquisition of Visual Connection include:

• Complementary and robust combined product suite; i.e., extension of KIT digital’s capabilities from its existing KIT VX IPTV software platform to content delivery network (CDN) and NOC set-up and maintenance capabilities
• Substantial cross-selling opportunities in the context of a go-to-market plan focused on emerging markets
• Solidified market share leadership across Continental and Eastern Europe
• Seasoned management team with similar hard-driving, entrepreneurial culture
• Equity-focused, performance-based deal structure, aligning interests of Visual Connection management and KIT digital
• Immediate increase in revenue and profitability (accretive transaction).

Strengthened also by the recent accretive and debt-free acquisition of Morpheum, a web-based content management system provider, KIT digital has quickly emerged as one of the leading players in the fast-growing IPTV industry, with a focus on international markets.

The acquisition of Visual Connection demonstrates KIT’s intention to be the clear industry leader in the Central and Eastern European region. TV advertising revenue from this market alone is estimated to double to $12 billion by 2013. Media spending in this region is growing four times as fast as in the U.K. and Western Europe, with more than 20 million broadband users added per year (Source: Informa Telecoms & Media). KIT digital plans to upsell its KIT VX platform into Visual’s existing client base, while leveraging KIT’s global network of salespeople to accelerate expansion of Visual’s digitization and NOC capabilities into other emerging markets, particularly Middle East/North Africa, Southeast Asia and Latin America.

“This is a game-changing acquisition for us,” notes Kaleil Isaza Tuzman, chairman and chief executive officer, KIT digital. “We now have greater geographic and financial scale, and the companies’ complementary product lines open up markets for each other. In particular, Visual Connection puts us in a position to better leverage client opportunities in emerging markets.”
Gavin Campion, president of KIT digital, added, “We believe this combination makes KIT digital the largest company to date in the IP-based video platform marketplace, as measured by revenues, operating cash flow, geographic penetration, and product suite capabilities. This acquisition completes our 2008 strategic plan, and now our focus turns to operational and technical integration, cross-selling, and penetrating new client segments.”

Tomas Petru, CEO of Visual Connection, and Jakub Vanek, chief engineer of Visual Connection, have joined KIT digital in senior management positions.

According to Petru, “As Visual began to expand beyond on its Central European base, we recognized the advantages of partnering with a global player like KIT digital and how it could accelerate this process. We were immediately attracted to KIT’s focus on international growth, financial discipline, and desire to take advantage of today’s challenging markets by consolidating leadership in our space. While some other companies in our industry are struggling to cohere a market strategy or becoming casualties of Wall Street, KIT knows what it wants and has the wherewithal to get there. We are convinced we joined the winning team.”

KIT digital and Visual Connection will market their combined product suite as a corporate presenter at the MIPCOM 2008 audiovisual conference in Cannes, France from October 13-17, 2008.

KIT digital will be filing a Form 8-K with the Securities and Exchange Commission, which will include further detail surrounding the Visual Connection acquisition.

Conference Call

The company will host a conference call to discuss the Visual Connection acquisition, management’s strategic plan, and the current market environment. The call is scheduled at 10:30 a.m. Eastern Time on Thursday, October 16, 2008, the details of which will be disseminated in a separate press release. For interested individuals unable to join the live conference call, a call-in replay will be available and an online audio archive of the call will be available on the company’s website (http://www.kit-digital.com) for 30 days following the call.

About Visual Connection

Visual Connection, a.s. is the European specialist of choice in the supply and delivery of comprehensive digital media solutions, services and components since 1991. The company designs, develops, delivers and integrates IPTV systems for professional, digital production, processing, distribution and archiving of audiovisual materials. Visual Connection links its expertise with integration capabilities for television, IT and telco systems, and offers technical and service support available 24/7. Visual Connection has over 200 clients, and has been involved in deployments for television and radio stations, graphics publishers, audiovisual production and post production houses, state and federal government administration, education companies, telcos and healthcare providers. Visual Connection is based in Prague, with sales representation offices in Bratislava (Slovakia), London and Dubai. For more information, go to: http://www.visual.cz/en.

About KIT digital

KIT digital, Inc. (OTCBB: KITD - News) is a leading, global provider of proprietary IP-based video distribution technologies and video-centric interactive marketing solutions. 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 and mobile networks. The KIT VX platform allows clients to publish, manage and distribute 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 100 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include News Corp., Verizon, IMG, China Mobile, Telefonica, Vodafone, K-Mart, Coles, NASDAQ, Hummer and RCS. KIT digital has principal offices in Dubai, Melbourne (Australia), Stockholm, New York and London. For additional information, visit http://www.kit-digital.com.

Forward-Looking Statements

This press release contains certain “forward-looking statements” related to the businesses of KIT digital, Inc. and Visual Connection, a.s. 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. Neither KIT digital, Inc. nor Visual Connection, a.s. are under 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.

Media Contact:
Jonathan Cutler
Verse Communications
818.981.3023
jonathan@verseinc.com

Gross revenues up 57%, operating loss down 69%, net loss down 69% from Q1
Acquisition of Kamera and corporate consolidaton completed
Company on track to achieve cash flow positivity during Q4

DUBAI - August 14, 2008 - KIT digital, Inc. (OTCBB: KITD), a global provider of IPTV enablement technology and video-centric interactive marketing solutions, announced today financial results for the quarter ended June 30, 2008. All figures below are quoted in U.S. dollars.

For the quarter ended June 30, 2008, revenue was $5.5 million compared to $3.5 million for Q1 2008 and $3.6 million in the prior year Q2 period. The Company’s revenue includes software set-up fees, software license and maintenance fees, technical and creative service charges, streaming and data fees, and advertising-related income.

The net loss for the quarter ended June 30, 2008 was $3.3 million, or $0.04 per basic and diluted share, compared to $10.6 million, or $0.27 per basic and diluted share in Q1 2008 and $7.4 million, or $0.22 per basic and diluted share, in the prior year Q2 period.

The net loss for the quarter ended June 30, 2008 reflects several non-cash items, including $73,000 in stock-based compensation, compared to $4.0 million in Q1 2008 and $1.2 million in the prior year Q2 period. Additionally, the net loss included restructuring charges of $146,000 relating to severance and facility closing compared to $2.7 million in Q1 2008 and zero for the prior year Q2 period.

Operating EBITDA loss for the quarter ended June 30, 2008 was $2.2 million, compared to a loss of $3.4 million in Q1 2008 and a loss of $6.1 million in the prior year Q2 period. Operating EBITDA as defined here is the loss before non-cash stock based compensation, restructuring and non-recurring costs, impairment of property and equipment and depreciation and amortization.  

Management remains confident that the Company will cross over to a cash-flow positive position during the course of the fourth quarter of this year.

Weighted average common shares outstanding for the three months ended June 30, 2008 was 82,800,972 compared to 38,936,039 in Q1 2008 and 33,899,002 for prior year Q2 period. The weighted average common shares outstanding at August 13, 2008 were 114,524,313.

On June 30, 2008, the Company had a cash position of $7.3 million. The Company expects an additional $5.0 million forthwith from KIT Media Limited (“KIT Media”), pursuant to the Executive Management Agreement dated December 18, 2007 between KIT Capital Ltd. (“KIT Capital”) and the Company. Certain funds related to KIT Media’s additional $5.0 million investment are currently being held in escrow by the Company, pursuant to the issuance of warrants and certain settlements between KIT Capital and the Company, but are not reflected in the Company’s reported cash balance. KIT Media and KIT Capital are each beneficially controlled by the CEO of the Company, Kaleil Isaza Tuzman.

Management believes the Company possesses cash that is more than sufficient to finance its organic growth plan through to profitability, as well as selective acquisitions.

On May 19, 2008, KIT entered into a definitive Share Purchase Agreement (the “Kamera SPA”) to acquire 100% of the outstanding shares of Kamera Content AB, and took control of the day-to-to-day operations of Kamera’s business on the same date. Cash payments totaling $4.5 million were made to consummate the Kamera acquisition and certain final conditions to the Kamera SPA were completed on June 25, 2008.

Management believes that the Company currently is in compliance with the requirements to be listed on NASDAQ Small Cap or the American Stock Exchange, except for its per share price. As such, the Company is reviewing the possibility of performing a reverse stock split and subsequent listing on one of these exchanges—which would be executed in the context of the Company crossing over to a cash-flow positive operating position. Management believes that a listing on a more prominent exchange would enhance visibility and liquidity for the Company’s common stock, and allow for certain commercial opportunities not currently available to the Company.

Kaleil Isaza Tuzman, chairman and chief executive officer of kit digital, commented, “Our Q2 exceeded management expectations. We are experiencing strong momentum across our business. With the right-sizing of kit digital and the acquisitions of Sputnik Agency and Kamera now complete, the company is now squarely focused on achieving positive cash flow by the fourth quarter. Our strong operating and cash position provides us the opportunity to assess selective, accretive acquisitions as appropriate”

Gavin Campion, president of kit digital, commented, “We are pleased at the current pace of revenue and gross profit growth, especially in the context of the significant cost reduction and post-acquisition consolidation activity that took place at kit digital in the first half of the year. Recent client additions in Asia, the Middle East and North America further demonstrate the success of kit’s focus on international markets. Our business model has been further strengthened by the acquisition of Kamera’s mobile capabilities, and we continue to adhere to a disciplined cost structure and a tactical, international growth plan.”

The Company estimates that over 92% of its revenues in the second quarter of 2008 were generated in the Asia/Pacific and Europe and Middle East (EMEA) geographies.

KIT digital’s significant corporate milestones announced during the second quarter of 2008 and since June 30, 2008 include:

• Completion, on May 8, 2008, of a $15 million investment in common stock of the Company by a group of institutional investors, led by a $7.06 million investment by kit Media.
• Completion of the acquisition of 100% ownership interest in Kamera Content, a Stockholm-based mobile content development and distribution company with clients such as Vodafone, Telefónica, MSN and China Mobile;
• Completion of the acquisition of 100% ownership in video-centric interactive online agency Sputnik, and the appointment of Sputnik managing director Gavin Campion to be president of kit digital;
•  OTCBB ticker symbol changed from RGRP to kitD;
• Polkomtel, Poland’s leading mobile services provider, chose kit digital to provide mobile distribution of EuroCup 2008 and Olympics content;
• Stephen O’Farrell and Barak Bar-Cohen appointed to senior management roles in Asia/Pacific and Americas groups, respectively;
• RCN, a leading broadcaster in Latin America, chose kit digital to provide a broad range of streaming media initiatives;
• Media Gateway, a leading international digital media content clearing house, agreed to work with kit digital to provide a broad suite of video content for various mobile TV launches in the Middle East and North Africa (MENA) region;
• Notice that kit Media, an affiliate of kit Capital, is exercising its right to purchase $5 million of common stock at a price of $0.16 per share, with funding into escrow pursuant to Company issuance of warrants.

Conference Call

The Company will host a conference call to discuss Q2 2008 results at 10:30 a.m. ET on Thursday, August 14, 2008. To participate in the call, please dial +1 (800) 766 1337 (North America) or +1 (404) 920 6210 (outside of North America). The passcode for the call is 41935739.  Please dial into the call at least five minutes before the scheduled start time to allow for processing time.

For interested individuals unable to join the live conference call, a replay of the call will be available through August 28, 2008, +1 (800) 766 1337 (North America) or +1 (404) 920 6210 (outside of North America). The passcode for the call is *41935739. An online archive of the webcast will be available on the Company’s website for 30 days following the call at the following link: http://www.kit-digital.com/news/events.aspx

About KIT digital

KIT digital, Inc. (OTCBB: KITD) is a leading, global provider of proprietary IP-based video distribution technologies and video-centric interactive marketing solutions. 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 and mobile networks. The KIT platform allows clients to publish, manage and distribute digital video content, build online/mobile communities and integrate advertising. The Company offers businesses a full range of interactive marketing solutions and KIT clients can access approximately 100 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include News Corp., Verizon, IMG, China Mobile, Telefonica, Vodafone, K-Mart, Coles, NASDAQ, Hummer and RCS. KIT digital has principal offices in Dubai, Melbourne (Australia), Stockholm, New York and London. For additional information, please visit www.kit-digital.com.

Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 — With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of kit digital, Inc. could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company’s operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rates and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.

 
Media Contact:
Jonathan Cutler
Verse Communications
818.981.3023
jonathan@verseinc.com

DUBAI, NEW YORK, LOS ANGELES, August 4, 2008 - KIT Capital, an entrepreneur-led special situations merchant bank, MNA Partners, a boutique corporate finance and investment firm focused on the Middle East and North Africa (MENA) region, and River Road Ventures, a US-based early stage venture capital firm, today announced their merger and the resulting formation of

KCP Capital. KCP Capital represents a unique cross-border merchant bank, with principal offices in Dubai, New York and Los Angeles, focused on the increasing business opportunities and capital flows between the Gulf Cooperation Council (GCC) zone, the Americas, and the ascendant emerging markets. KCP Capital will have four major practice areas: (i) Digital Media, led by Kaleil Isaza Tuzman, (ii) Merchant Banking, led by Kamal El-Tayara, (iii) Real Estate, led by Daniel W. Hart, and (iv) Asset Management, led by Irfan Amanat. KCP’s practice areas leverage the core operational and financial expertise of the KCP team, while optimizing for the opportunities and gaps that exist between developed and emerging markets.

KCP Capital’s digital media activities are centered around Dubai-based KIT digital (OTCBB: KITD), the largest investor in which is KCP’s investment vehicle, KIT Media, Ltd. KIT digital is a leading IPTV enablement and marketing solutions company focused on Global 1000 corporate clients in international markets. Kaleil Isaza Tuzman, managing partner of KCP Capital and former president of KIT Capital, serves as chairman & CEO of KIT digital.

Mr. Isaza Tuzman commented, “As a result of KIT Capital’s merger into the larger KCP Capital entity, KIT digital is now backed by greater financial muscle and, as such, is better positioned than ever to continue its path of aggressive organic growth and market consolidation. KIT digital’s shareholders know that I believe today’s turbulent markets provide well-capitalized companies with a unique advantage. This merger strengthens our capital base and allows me to further focus my time on growing KIT digital by transitioning KIT Capital’s other portfolio responsibilities to my new partners in KCP Capital.”

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KCP Capital’s real estate activities are centered around newly formed KCP Emergency Markets, a dedicated private equity fund vehicle focused on frontier emerging markets. The fund’s investment thesis is based on the arbitrage between real and perceived risk in “dislocated” markets, where positive catalysts-e.g., regime change, the end of bellicosity or civil strife, integration into regional trading organizations-may quickly and fundamentally change a country or regional investment landscape. KCP Emergency Markets is managed by KCP managing partner Daniel W. Hart.

Mr. Hart, former managing partner of River Road Ventures, explained, “We have taken proven entrepreneurs, former Goldman Sachs and Salomon Smith Barney executives, and a track record of investment success to create a first-class, cross-border partnership. The KCP Emergency Markets fund is off to a great start, thanks to the strength of this partnership.”

KCP Capital’s asset management practice, led by managing partner Irfan Amanat, is centered around KCP Structural Arbitrage, a global currency and fixed income fund which has been in existence since 2005 and has achieved a 26.8% compounded annual return after fees since inception, with extraordinarily low volatility.

The KCP merchant banking team, led by managing partner Kamal El-Tayara, anchors investment syndicates and provides financial advisory services to corporations and fund vehicles in the real estate, media, retail, transportation, telecommunications and technology industries. Since 1995, KCP principals have raised third-party equity financing in excess of US$2.0 billion in these industries and have completed over 100 transactions in the Americas, MENA, Sub-Saharan Africa and Southeast Asia-including corporate finance advisory services in the MENA region to major establishments such as Tamweel, FORSA (part of Istithmar World) and Villa Moda, as well as significant sell-side advisory mandates for telcos like Telesonique (Switzerland) and Nationlink (Central African Republic).

KCP’s merchant banking practice also manages a successful escrow services practice in the GCC real estate sector.

“Our collective relationships and expertise have been strengthened by this merger,” said Messrs. El-Tayara and Amanat, former managing partners of MNA Partners. “We believe KCP Capital is the first boutique merchant bank of its kind, focused on areas of strength in the U.S. and the GCC respectively.”

KCP Capital principals have served as entrepreneurs, operating executives, fund managers, and investment bankers. The KCP team utilizes a practical, hands-on approach that maximizes value for its investors and portfolio companies. KCP predecessor entities have directly invested in and managed companies including KIT digital (OTCBB: KITD), Silicon Spice, KPE, Nextivity, JumpTV (AIM, TSX: JTV) and Slipgate Ironworks, which have collectively created well over $1.5 billion in market value.

For additional information, please visit KCP Capital’s new website, at www.kcpcapital.com.