PeerTV PLC Half Yearly Report

 25 September 2013

PeerTV PLC

("PeerTV" or "the Company")

Interim Results and Issue of Equity

PeerTV (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market, and PCB (printed circuit board) production solutions, today announces its unaudited results for the six months ending 30 June 2013.

Key Developments

· Consolidated turnover of $1,274,000 and total comprehensive loss of $1,099,000.

· Operating loss for the period reduced by 63% ($475,000 compared to $1,275,000 the same period in 2012 and $4,419,000 for the year ended 31 December 2012).

Both businesses have made steady progress towards recovery. Conversion of prospects into orders taking time.

· Main achievement in PTV was the delivery of the first order for Android Set Top Box to PTV's major traditional customer. Significant additional orders expected later in 2013 and beyond.

· PeerTV marketing team has generated a stream of potentially significant sales opportunities. Peer TV R&D department allocating its limited resources to progressing the conversion of these leads into sales.

· Digitek made important progress in establishing relationships with several customers, including many well known Israeli brands, with potential for mass production and high volume business.

· Achieving approvals for the military and medical sectors opening doors to several important customers.

Post Period Highlights

· Digitek sales in third quarter of 2013 have increased significantly compared to the first two quarters of 2013.

· Continuation of placing of 35,714,285 0.5p Ordinary shares at 3.50 pence per share and a similar number of five year warrants exercisable at 4 pence per share, generating a total of £1,250,000 gross proceeds. The Company has effected closings in respect of £1,007,400 to date of which £550,500 was received prior to 30 June 2013. The balance is expected to complete during the final quarter of 2013.

· Digitek SMT Assemblies Ltd raised a further £110,000 in secured loan notes and has made repayments to loan noteholders totaling £41,000.

Further to the announcement of 3 September 2013, the company announces the issue of 3,539,996 new ordinary shares.

These new ordinary shares were issued pursuant to a further closing of the placing announced on 16 June 2013 and also mentioned above. The shares and attached warrants were placed with private investors. This brings the gross amount received by the company under the placing to £1,007,400.

Application has been be made for the 3,539,996 shares, which rank pari passu with the existing ordinary shares in issue, to be admitted to trading on AIM and admission to trading is expected on or after 5 October 2013.

Further enquiries:

PeerTV Plc

Eitan Yanuv, Chairman

+972 9 7407315

Libertas Capital Corporate Finance Ltd

Thilo Hoffmann/Sandy Jamieson +44 (0) 203 697 9499

APPENDIX

CHAIRMAN'S STATEMENT

Our interim results for the six months ended 30 June 2013 show consolidated turnover of $1,274,000 and total comprehensive losses of $1,101,000.

The operating loss for the period was $477,000 compared to $1,275,000 in the same period in 2012.

Both our businesses have been making progress and are steadily converting prospects into orders.

Peer TV

During the first six months of 2013 Peer TV supplied the first order for our Android set top box to our major traditional customer. The product was launched by the customer on a commercial basis in August 2013 and we are expecting follow up orders after our customers' market testing.

Following its extensive activities, including attendance at trade exhibitions and a European road show in July 2013, the PeerTV marketing team has generated a stream of potentially significant sales opportunities. We have a meaningful sales pipeline of over 200,000 units from about twenty separate companies and we hope to convert a proportion of these into sales. Each of these leads requires support from our R&D team and requires careful resource allocation and we expect fairly lengthy sales cycles.

Digitek

During the first six months of 2013 Digitek made important progress in establishing relationships with several new customers, including many important Israeli companies.

Success in obtaining the top level quality approvals for the military and medical sectors has opened the door to several major customers.

The results of these efforts have been seen in the third quarter of 2013 in which sales have increased significantly.

The Digitek business continues to be financed by an investor based revolving loan note facility. The finance costs associated with the facility are high and we hope to be in a position to revert to bank credit facilities by mid 2014.

E Yanuv

Chairman and Director

CONDENSED GROUP INCOME STATEMENT

FOR THE SIX MONTHS ENDED 30 JUNE 2013

CONDENSED GROUP BALANCE SHEET

FOR THE SIX MONTHS ENDED 30 JUNE 2013

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

NOTES TO THE REPORT AND CONDENSED GROUP FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED 30 JUNE 2013

1. 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 2013 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 2013 and for the six months ended 30 June 2012 are unaudited.

The financial information for the year ended 31 December 2012 is an extract from the latest group accounts. Statutory financial statements for the year ended 31 December 2012, prepared in accordance with IFRS, on which the auditors gave an unmodified opinion but did include reference to matters to which the auditors drew attention by way of emphasis without modifying 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.

During the six month period ended 30 June 2013 the group incurred a loss of $1,101,000 and had net liabilities of $5,442,000 as at that date.

During the period both businesses made progress including the conversion of prospects to orders. In particular PeerTV supplied the first order of its Android set top box to its traditional customer and expects further orders following the successful launch of the product. Investment capital is being used to provide the technical support required to convert other sales leads to orders.

Similarly, Digitek made important progress in establishing relationships with several new customers, including many important Israeli companies, assisted by obtaining the top level quality approvals for the military and medical sectors. These factors are reflected in increasing order book and sales.

The directors believe that due to the aforementioned restructuring and funds raised through private placing which commenced in June 2013 and issue of loan notes in Digitek SMT Assemblies since the period end the group is a going concern. However, the future of the group is dependent on the directors being successful in their bid to secure finance and the group achieving its trading projections.

2. RAISING OF CAPITAL

In June 2013 the company approved and reported the issue of 15,728,556 0.5p Ordinary shares at £0.035 each and 15,728,556 five year warrants exercisable at £0.04 per share.

3. BUSINESS SEGMENT ANALYSIS

Class of business

The turnover, loss on ordinary activities before taxation and net liabilities of the group are attributable to two

classes of business.

PeerTV Ltd is engaged in developing and providing hardware and software to enable the delivery of live broadcasts and video on demand over the internet to the television. The company develops, manufactures and supplies end-to-end technology systems for a new breed of TV operator that seeks to deliver rich, personalized and highly cost-effective internet TV services.

Through its wholly owned subsidiaries SM Digitek (1993) Ltd and Digitek SMT Assemblies Ltd, Digitek Holdings Ltd's principal activities are the assembly of electronic products and components and the associated sourcing and logistics for companies principally engaged in the hi-tech and telecommunications industries in Israel. It uses electronic and computerized equipment, which operates robotically and is geared to the accurate assembly of the electronic components on the circuit board in the least possible time.

4. LOSS PER SHARE

Basic loss per share is calculated by reference to the loss on ordinary activities after taxation of $1,101,000 (30 June 2012- loss of $1,614,000 and 31 December 2012 - loss of $5,170,000) and on the weighted average of 60,008,815 (30 June 2012 - 45,844,122 and 31 December 2012 - 50,229,193) shares in issue. The calculation of diluted earnings per share is based on the loss on ordinary activities after taxation and the diluted weighted average of 74,984,088 (30 June 2012 - 47,377,947 and 31 December 2012 - 62,220,398) shares calculated as follows:

Since 30 June 2013 a total of £456,900, representing 13,054,286 0.5p Ordinary shares and warrants, has been received.

Since 30 June 2013 Digitek SMT Assemblies Ltd raised a further £110,000 in secured loan notes and has made repayments to loan note holders totaling £41,000.