Optibase Enhances Media Gateways Family with a Single-Channel Video Streamer; Introducing the new MGW 200 - a single channel encode/decode solution for one-way or two-way communications.

MOUNTAIN VIEW, Calif. & HERZLIYA, Israel -- Optibase, Ltd. (Nasdaq:OBAS) a leading provider of advanced digital video solutions, today announced that it has developed a new addition to the company's family of streaming appliances - MGW 200. This appliance combines a hardware-based MPEG-2, -1 encoder and decoder for one-way and two-way communications. Target applications include video contribution, corporate-communications and training, video server upload, high-end video monitoring and other IP streaming applications. The new platform completes the line of IP streaming appliances, which also include the telco-grade MGW 1100 and the mid-range MGW 2000e. The MGW 200 will be showcased at the National Association of Broadcasters (NAB) convention in Las Vegas, April 18-21, 2005 in Booth #SL 343.

With MGW 200, Optibase brings ease of use together with advanced features and top video quality. The system transmits and receives live video over an IP network, encodes a single, live analog or SDI source into MPEG-2, -1, and streams it in real time via IP in multicast or unicast mode. Coupled with a hardware decoder, it provides instantaneous two-way communication and video delivery using Session Announcement Protocol (SAP) and Session Description Protocol (SDP) to automatically trigger the player for live or scheduled programming and optimize data traffic and bit rates.

"The small footprint and integrated operation of the MGW 200 makes it an ideal solution for customers in education, enterprise and broadcasting, whether they are streaming live video for training, setting up a video on demand (VOD) system, monitoring security cameras, or backhauling video from location back to a television station," said Uzi Breier, Optibase's CEO. "As more and more organizations become interested in the ease and efficiency of IP streaming, this system offers reliability and quality together with integrated, user-friendly and cost-economic operation."

The MGW 200 is a 1RU appliance with an embedded processor, supporting a full range of bit-rates and resolutions. It is suited for 1-way or 2-way communications, and is equipped with a web-based management system, which allows for control anywhere on the network. It supports a wide range of network protocols and includes Optibase's traffic shaping algorithm for optimized video quality.

MGW 200 is expected to be available early Q3 of 2005. For product specifications and details, please visit www.optibase.com.

About Optibase

Optibase provides professional editing, compositing, encoding, decoding, video server upload and streaming solutions for telecom operators, service providers, broadcasters and content creators. The company's platforms enable the creation, broadband streaming and playback of high quality digital video. Optibase's breadth of product offerings are used in applications, such as: video over DSL/Fiber networks, post production for the broadcast and cables industries, archiving; high-end surveillance, distance learning; and business television. Headquartered in Israel, Optibase operates through its fully owned subsidiary in Mountain View, California and offices in Massachusetts, Europe, Japan, China and Singapore. Optibase products are marketed in over 40 countries through a combination of direct sales, independent distributors, system integrators and OEM partners. For further information, please visit www.optibase.com.

Statements made in this press release with respect to Optibase's current plans, estimates, strategies and beliefs, particularly with respect to upcoming releases of new products, that are not historical fact are statements that could be deemed forward-looking statements about the future performance of Optibase. All forward-looking statements in this press release are made based on management's current assumptions, expectations and estimates in light of the information currently available to it. Optibase cautions you that a number of serious risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and advises you not to place undue reliance upon them. The Company does not undertake any obligation to update forward-looking statements made herein.