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