Results for the year ended 31 December 2013

27 June 2014

PeerTV PLC

("PeerTV" or "the Company")

Results for the year ended 31 December 2013

PeerTV (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market and PCB (printed circuit board) production solutions announces its audited results for the year ended 31 December 2013.

Highlights 

· Total revenue of $3.01 million (2011: $1.96 million)

· Operating Loss $1.8 million (2011 $4.4 million)

· Total Comprehensive Loss of $3.05 million (2012 loss: $5.17 million). This includes $2.26 million of financing costs (2012 $1.4 million)

· Operating expenses reduced from $2 million in 2012 to $1.06 million in 2013.

· Total equity fundraising of approximately $2.8 million during the year

· Continued restructuring and refinancing of the Digitek business through the issue of additional secured loan notes and reaching agreements with bank and various other creditors

· Obtaining the standards required to attract high tier customers capable of generating orders for mass production. Continuing to reduce costs across the Group

· Focus on completing the development of the Android based Set Top Box and supplying first orders to PeerTVs major customer. Initial products which were delivered in 2013 and launched by the customer in early 2014, were well received by both the customer and its end users and expected to lead to increasing order levels.

Post Year-end Events

· Order of approximately $6.3m received by Digitek for delivery within 12 months

· Additional working capital of £566,800 raised through private placings

· £450, 280 of 8% Loan Notes converted to equity at a discount of 10% to the average price at which funds were raised during the quarter ended 31 March 2014

The Annual report and the auditor's report include the following statements

Auditors Report: Emphasis of matter - going concern

In forming our opinion, which is not modified, we have considered the adequacy of the disclosures made within note 1e of the accounting policies concerning the group's and the parent company's ability to continue as a going concern. The group incurred a net loss of $3,048,000 during the year ended 31 December 2013 and had net liabilities of $6,339,000 as at that date. This, along with the other matters explained within note 1e of the accounting policies indicate the existence of a material uncertainty which may cast a significant doubt about the group and company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the group and company were unable to continue as a going concern.

Annual Report: Going concern

The full audited accounts are available from the Company's website: www.peertvplc.com and will be posted to shareholders in the next few days.

Further enquiries:

PeerTV Plc

Eitan Yanuv, Chairman

+972 974 07315

Daniel Stewart & Company

Antony Legge / David Coffman

+44(0)20 7776 6550

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2013

I was appointed Chairman in May 2013. During 2013 the Group continued to focus on realising the potential of both its business units, Peer TV and Digitek, by exploiting the competitive advantages and positive developments in its market sectors.

Peer TV

The PeerTV business made significant progress during 2013. The first delivery of our Android set top box was made to our major customer in May 2013. However, the customer's product launch was delayed until January 2014 due to a combination of issues outside the control of PeerTV, including requests from the customer for additional features.

During 2013, our sales team succeeded in identifying several major prospects. However, due to the demands for substantial customisation and ongoing support, it was decided to focus resources on our major customer to ensure a successful deployment as a reference for expansion of the customer base.

I am very pleased to report that the reaction to the product of both our customer and the end users has been extremely positive, confirming the importance of PeerTV being the first vendor in the market with an Android based solution. The launch has resulted in approaches from at least two new customers, one of which has placed an initial order, as part of a framework order for a more significant quantity.

Investment raised in 2014 will be utilised for marketing to expand the customer base. Our development program will result in a series of innovative features which will further strengthen our competitive advantage.

We are seeing consistent and significant growth in interest and adoption of Smart TV solutions which bridge the gap between the Internet and traditional television, and anticipate rising demand for our products.

Digitek

During the year management focus at Digitek was on strengthening the customer base and obtaining the standard approvals necessary to address certain high growth sectors, including the military and medical equipment, which offer the possibility of mass production orders.

Improved sales volumes and the introduction of new important customers during the final quarter of 2013 demonstrated the success of the approach. In some cases, shortages of working capital have prevented Digitek from taking full advantage of the opportunities generated by being unable to finance the inventory of components required for large scale turnkey projects.

The Digitek team has made great steps in repositioning the business, while simultaneously dealing with serious financial challenges. Major new customers have been recruited. In May 2014 we announced a purchase order from an overseas customer of a minimum of $6.3 million for delivery in 2014. The receipt of this order for mass production represents an important milestone and we are optimistic that it will result in further high value contracts.

The board has managed its financial challenges successfully during 2013 through further issues of debt and equity finance.

Thanks go to our chief executive Avi Vermus, directors and members of staff, together with our advisors for their hard work and support during the year. We look forward to building on the significant progress that is being made in both businesses during 2014.

E.Yanuv

Chairman

PEERTV PLC

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2013

PEERTV PLC

CONSOLIDATED BALANCE SHEET

AT 31 DECEMBER 2013

The financial statements were approved and authorised for issue by the Board of Directors on 25 June 2014 and were signed below on its behalf by:

E Yanuv

Director