Restructuring of SM Digitek credit facilities

30 April 2012

PeerTV PLC

("PeerTV" or "the Company")

Restructuring of SM Digitek credit facilities

PeerTV (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market and PCB (printed circuit board) production solutions, announces that its subsidiary S.M. Digitek Ltd. ("Digitek") has reached the first closing of a placing of secured loan notes (the "Secured Loan Notes") to restructure its balance sheet.

Digitek's bankers announced the withdrawal of banking facilities and have agreed with Digitek for an orderly reduction of indebtedness from the collection of debtors. The agreement provides for a capping of Digitek's repayments and with the ability for Digitek to earn a discount of approximately NIS 2 million (approximately £350,000) on its liabilities upon completion of the restructuring.

The financing is being structured via a new company, Digitek Assemblies SMT Ltd. ("DAS"). DAS is raising up to £1,250,000 (before expenses) to buy certain assets of Digitek through the placing of non-transferrable Secured Loan Notes. Digitek will use the funds received from DA for its debt restructuring and for working capital purposes.

The Secured Loan Notes have a maturity of 6 or 12 months and automatically renew unless investors notify Digitek that they wish to be repaid or Digitek decides to repay the Loan Notes. To facilitate the placing, PeerTV has entered into arrangements in which the subscribers to the Secured Loan Notes will receive warrants to purchase Ordinary Shares of Peer TV at par value. A first closing of £300,000 out of a total of £590,500 valid applications received to date was effected on 27 April. A total of 838,800 Warrants will be issued in connection with the valid applications received to date.

Further enquiries:

PeerTV Plc

Leon Nahon, Chairman +972 974 07315

Libertas Capital Corporate Finance Limited

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

Rivington Street Corporate Finance

Jon Levinson +44 (0) 20 7562 3384

Bishopsgate Communications

Deepali Schneider/Lynne Goulding +44 (0) 20 7562 3350