Half Yearly Report

28 September 2011

PeerTV PLC

("PeerTV" or "the Company")

Results for the six months ending 30 June 2011

PeerTV (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market, today announces its unaudited results for the six months ending 30 June 2011.

Key Developments

·; Production issues resolved and production process improved and streamlined through cooperation with S.M. Digitek the operating subsidiary of Digitek Holdings Ltd. ("Digitek")

·; Revenue of $993k show slower recovery than anticipated (2010: $5,081k). Proforma revenue of enlarged group amounted to $5,726k (2010:n/a)

·; Investment in R&D slightly up to $686k (2010: $538k), Sales and G&A down to $100k and $473, respectively (2010: $231k and $557k, respectively)

·; New Board focused on significantly strengthening the corporate governance and reporting functions of the Company

Post Period Highlights

·; Lifting of suspension from trading on 12 September 2011.

·; Approval of acquisition of Digitek by PeerTV shareholders on 28 September 2011.

·; Readmission to trading on AIM of the enlarged group expected on 29 September 2011

·; The Company raised £2.38m to provide working capital and cover the costs of the acquisition of Digitek Holdings Ltd. ("Digitek").

·; Completion of Digitek acquisition, which is expected to produce significant operational benefits to the Company in logistics, quality control and production management.

Chairman Leon Nahon Commented:

"Having addressed the technical issues and finalised the completion of the acquisition of Digitek, your Board looks forward to growing the enlarged business. We are focussed on integrating the businesses and further developing our product offering and growing our customer base."

Further enquiries:

PeerTV Plc

Leon Nahon, Chairman +972 974 07315

Ofer Barda, CEO

Libertas Capital Corporate Finance Limited

Thilo Hoffmann/Andrew McLennan +44 (0) 20 7569 9650

Rivington Street Corporate Finance

Dru Edmonstone/ Jon Levinson +44 (0) 20 7562 3357

Bishopsgate Communications

Deepali Schneider/Natalie Quinn +44 (0) 20 7562 3350

Appendix

Chairman's Statement

We have been through a very significant period for the Company. I will summarise events briefly and more detail can be found in our recently published Admission document

·; I was appointed Chairman on 27 April 2011

·; We have successfully addressed the production problems which impacted performance in 2010 and we appointed a new Group Chief Executive, Ofer Barda in February 2011.

·; The Company negotiated the acquisition of Digitek Holdings Ltd. ("Digitek") by way of an offer and the document covering this transaction was published on 12 September 2011. By 27 September 2011 54% of Digitek shareholders had accepted the offer. The transaction was approved by PeerTV shareholders on 28 September 2011.

·; Although our sales in the first half of the year are reduced, the markets Peer TV operates in continue to be buoyant and we believe that new products will make a significant contribution in the future.

·; We recently announced the launch of the beta version of a new Android based Set Top Box and we expect this to become an important market.

·; Digitek continues to trade profitably and should provide financial stability to our overall group results. For your convenience, the table below combines our unaudited results for the six months ended 30 June 2011 with those of Digitek for the same period, giving an indication of the performance of the two companies combined had the merger been effective throughout the period:

CONDENSED ENLARGED GROUP PRO-FORMA INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2011

·; We have appointed Moshe Bartov as the Chief Operating Officer of Peer TV Ltd. He brings a strong and deep background in the connected TV world.

·; We completed a £2.38 million equity and debt placing on 28 September 2011.

We look forward to a period when we can attack our growth market with greater vigour and we thank our shareholders for their support

Leon R Nahon

Chairman

CONDENSED GROUP INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2011

CONDENSED GROUP BALANCE SHEET

AS AT 30 JUNE 2011

PEERTV PLC

CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2011

CONDENSED GROUP CASH FLOW STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2011

BASIS OF PREPARATION

The condensed group financial statements have been prepared using accounting policies consistent with International Financial Reporting Standards (IFRS) as endorsed for use by Companies listed on an EU regulated market and in accordance with IAS34 - "Interim Financial Reporting". The same accounting policies, presentation and methods of computation have been followed in the preparation of these results as were applied in the Group's latest annual audited financial statements. It is not expected that there will be any changes or additions to these in the 2011 annual financial statements.

This statement does not comprise statutory accounts as defined in Section 434 of the Companies Act 2006 and the results for the six months ended 30 June 2011 and for the six months ended 30 June 2010 are unaudited.

The financial information for the year ended 31 December 2010 is an extract from the latest group accounts. Statutory financial statements for the year ended 31 December 2010, prepared in accordance with IFRS, on which the auditors gave an unqualified opinion but did include reference to matters to which the auditors drew attention by way of emphasis without qualifying their report.

The condensed group financial statements are presented in US Dollars and all values are rounded to the nearest thousand dollars ($'000) except when otherwise indicated.