Results for the year ended 31 December 2014

30 June 2015

PeerTV PLC

("PeerTV" or "the Company")

Results for the year ended 31 December 2014

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 2014.

Highlights 

· Total revenue of $1.51 million (2013: $3.01million)

· Operating Loss $4.5 million (2013: $1.8 million). Includes Exceptional Item, being the write down of goodwill on the purchase of Digitek of $957,000. (2013: Nil).

· Total Comprehensive Loss of $5.1 million (2013 loss: $3.05 million). This includes $2.06 million of financing costs (2013: $2.26 million) and

· Operating expenses increased from $1.3 million in 2013 to $2.2 million in 2014.

· Total equity fundraising of approximately $4.6 million during the year including the conversion of loan notes of $1.8 million to equity.

· Challenging year for both the PeerTV and Digitek businesses, with important technology advances not yet reflected in financial results.

· Confidence in the future of Over The Top TV on a global basis and electronic assembly in Israel.

· Both businesses impacted by shortage of working capital:

o PeerTV - forced dependence on main customer which despite successful launch and sales of Android Set Top Box did not follow through with further confirmed orders. However, new customer introduced together with several leads subsequent to the year end.

o Digitek - difficulty in financing turnkey projects and problems with machinery resulted in reduced orders and delays in bringing online some new customers from the military and medical device markets.

Post Year-end Events

· Investment of about $3.4 million raised to provide working capital, repay certain loans, accrued interest and fees, purchase equipment and to finance cooperation agreements with Speech Modules Holdings Limited ("Speech").

· Adoption of turnaround plan for PeerTV with appointment of new Chief Executive Officer and Vice President Sales & Marketing. Both appointees with strong industry experience.

· New assembly line to be purchased by Digitek to significantly increase capacity and attract new customers.

· Cooperation agreements signed with Speech for the development and marketing of synergetic products incorporating advanced Automatic Speech Recognition technologies.

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

Auditors Report: Emphasis of matter - going concern

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 $5,191,000 during the year ended 31 December 2014 and had net liabilities of $6,624,000 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 head office and can be downloaded from www.peertvplc.com. They will be posted to shareholders today together with the Notice of the Annual General Meeting to be held on 28th July 2015

Further enquiries:

PeerTV Plc

Eitan Yanuv, Chairman

Tel: +972 974 07315

ZAI Corporate Finance Limited

Tim Cofman / Richard Morrison

Tel: +44 20 7060 2220

Daniel Stewart & Company plc

David Coffman

Tel: +44 207 7766550

PEERTV PLC

CHAIRMAN'S STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2014

2014 was a challenging year for both our business units, Peer TV and Digitek. Important advances were made in both technical and business development. However, these are not yet not reflected in the financial results.

We remain confident that both units have competitive advantages which can be utilized to achieve significant profitability and build shareholder value.

During 2015 significant additional steps have been taken to address the shortcomings in these units and bring about the necessary turnaround. These include the appointment of highly experienced Chief Executive Officer and a VP Sales and Marketing at PeerTV and the purchase of a state of the art assembly line at Digitek.

Peer TV

With Broadband penetration levels rising and connected devices becoming increasingly accessible the Over the Top (OTT) market is showing strong growth and we anticipate rising demand for our products.

The Android set top box was launched by our major customer in January 2014. The reaction to the product of both our customer and the end users was extremely positive, the product sold out and initial orders were received from a new customer. Unfortunately repeat orders were delayed by the major customer's decision to deploy new infrastructure which would enable a more economic and higher quality service to their subscribers. Responding to that decision much effort was focused on the customer's requirement for various enhancements, including support for the advanced H.265 technology. Our success in completing the related tasks resulted in a conditional order worth just under $1 million. Unfortunately, although all the stated tests were passed, that order has still not been confirmed.

Throughout the year, shortages of working capital prevented us from actively pursuing opportunities in the wider OTT market due to the level of customization required. This meant the Company was dependent upon these two customers.

In the first half of 2015, we have ramped up the level of marketing with the aim of broadening the customer base. The appointments of Wes Wilcox and Jim Lomax provide us with industry expertise and we expect this to result in sales to established OTT operators and new entries to the market around the world.

During 2015, cooperation agreements have been signed with Speech Modules Holdings Ltd a leading provider of voice recognition systems, quoted on the Tel Aviv Stock Exchange. We are developing two exciting new products, incorporating the Speech technology. We currently hold about 15% of the share capital of Speech. It is an ambitious company with proprietary technologies for potentially huge global markets, but it is not without competitors. Our shareholding could prove to be an important financial asset.

Digitek

There remains good demand in Israel for quality electronic assembly services. There are many high tech, military and medical equipment companies which require local production for security and control purposes.

During 2014 the Digitek business was impacted by difficulties in obtaining financing for full turnkey projects and poor production line performance, which held back the recruitment of new larger customers, including those from the military and medical equipment sectors, offering the possibility of mass production orders.

In May 2014, Digitek received an order of $6.3 million to supply smart electric meters for export. An initial quantity worth $100,000 was supplied. The order had involved much management time and expense. Due to disputes between other parties in the supply chain, that order was not realized, despite satisfaction with the Digitek product and service.

During 2015, we have acquired a new assembly line, together with other machinery enabling Digitek to meet the quality requirements of larger customers and to significantly increase its assembly capacity. We have seen increasing interest from both existing and new customers and expect sales levels to increase during the second half of 2015.

Financing

During 2014 the Company issued new share capital of $4.6 million. This included the full conversion of Loan Notes issued by PeerTV plc in 2011, repayment of loan and other creditors, cash raised through private placements and a Standby Equity Distribution Agreement with Yorkville Advisers.

To support the business it continues to be necessary to raise equity financing, but we are aware of the high level of shareholder dilution that this involves and hope to move the group to a position where this is no longer necessary as quickly as possible

Our directors, management and members of staff, together with our advisors have continued with their hard work and support and we look forward to improved results in 2015 and beyond.

E.Yanuv

Chairman

PEERTV PLC

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2014

PEERTV PLC COMPANY NUMBER: 7068350

CONSOLIDATED BALANCE SHEET

AT 31 DECEMBER 2014