Loan Note Conversion and Issue of Equity

22 December 2014

PeerTV PLC

("PeerTV" or the "Company")

Loan Note Conversion and Issue of Equity

PeerTV plc (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market, and PCB (printed circuit board) production solutions announces that it has converted 8% unsecured loan notes ("Loan Notes") to the value of £806,660 resulting in the issue of 23,459,681 new Ordinary Shares at a price of 3.43849 pence each ("Conversion Shares"). This conversion has been made further to the announcement of 23 December 2013, which set out certain amendments to the terms of Loan Notes, including the Company's ability to elect to convert Loan Notes in issue into Ordinary Shares of the Company.

The Company also announces that it has issued 3,000,000 new Ordinary Shares in part payment of loans by its subsidiaries PeerTV Limited and SM Digitek (1993) Limited at a price of 2.5 pence per new Ordinary Share ("Loan Shares").

The Conversion Shares and the Loan Shares ("New Shares") amount to 26,459,681 new Ordinary Shares in aggregate. Application has been made for the New Shares to be admitted to trading on AIM and admission is expected to occur at 8:00am on 31 December 2014 ("Admission").

Following Admission, the Company will have in issue 67,580,974 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. Therefore the total number of Ordinary Shares with voting rights in the Company will be 67,580,974. This figure may be used by Shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

Further enquiries:

PeerTV Plc

Eitan Yanuv, Chairman

Tel: +972 974 07315

ZAI Corporate Finance Limited

Ray Zimmerman

Tel: +44 20 7060 2220