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KIT digital Introduces Integrated Multiscreen Entertainment Solution With IBM Smarter Commerce

Solution Extends Premium Video Content to Mobile Devices While Delivering Communications Service Providers Critical New Revenue Opportunities

LAS VEGAS, NV -- (Marketwire) -- 04/16/12 -- KIT digital (NASDAQ: KITD) and IBM (NYSE: IBM) today introduced a mobile eCommerce Video Solution that makes it easier for consumers to purchase premium content and view it on multiple screens. The new solution, which incorporates products from KIT digital and IBM's Smarter Commerce initiative, will be on display at this week's NAB Conference in Las Vegas.

Today's busy consumer demands an on-the-go entertainment experience that extends viewing beyond the TV to multiple devices including smartphones and tablets. This shift in viewing preferences was recently validated by Jupiter Research, which reported that by 2014 consumers will watch an average of three hours of content on tablets alone each month. With this shift in digital media consumption, the IBM Institute for Business Value's study, Beyond Content, found that traditional business models are no longer addressing today's challenges, signifying that media companies need creative approaches to capitalize on new revenue opportunities and remain ahead in a competitive market.

This new solution, which is a first phase integration and part of an ongoing partnership between KIT digital and IBM, uses backend software from IBM's Smarter Commerce initiative. By marrying these products, which support complex workflows, business rules and rights management, with frontend technology from KIT digital, Communications Service Providers can deliver engaging video experiences to any device for an audience of tens of millions of consumers. As a result, IBM and KIT digital's customers can differentiate themselves in a highly competitive market and plug into valuable new revenue streams.

IBM's Smarter Commerce initiative features software and services that help companies transform their business processes to more quickly respond to shifting customer demands in today's digitally transformed marketplace. The initiative is driven by the demands from organizations looking for ways to bring new levels of automation to marketing, sales and fulfillment to secure greater customer loyalty and is part of IBM's Media Enterprise Framework. This Framework is helping media firms around the globe achieve the agility necessary to succeed in a rapidly changing marketplace.

"Consumer expectations for video anytime, anywhere has reached record levels, and as a matter of survival, broadcasters and network operators must respond with engaging offers that meet their customers' demands," said Laura Kaatz, Managing Director of Partnerships for KIT digital. "Billions of dollars in revenue and market share are at stake, and so for the first time there is a real need for service providers and broadcasters to marry their business systems with IP-based video delivery. By joining forces with IBM we have been able to accomplish this quickly and cost effectively."

"Major media companies are looking to maximize the value of their customer touch points, and today are focused on the opportunities of 'TV Everywhere' viewing behavior," said Balan Nair, EVP - Chief Technology Officer for Liberty Global, Inc. "As consumers discover, watch, purchase and share more content on all their devices, the media industry must embrace new business models to stay relevant and profitable. In this environment, the need to marry business processes with video delivery technology is increasingly pressing, and the new solution created by IBM and KIT digital appears to answer that need."

"We are excited to be introducing the first and only true 'enterprise-ready' solution designed to enable broadcasters and telecommunications companies intending to invest seriously in this market," said Alex Blum, Chief Operating Officer, KIT digital. "Integrated solutions like this demonstrate our continued innovation and success powering the global transformation of traditional broadcast to multiscreen broadband TV."

KIT digital and IBM will also host a joint information session at NAB titled, "The Journey to Smarter Commerce and Social Engagement." The session takes place on April 17 at 12:00 p.m. in room N239/241, and will educate attendees about the convergence of social media, digital marketing, personalized commerce and multiscreen delivery and how they are giving media providers a new set of technologies and opportunities for monetization. IBM Worldwide Industry Director of Communications, Media and Retail John Konczal and KIT digital COO Alex Blum will lead the session.

Technical demonstrations of the new integrated solution will be held throughout the duration of the conference at KIT digital's booth (SU8505) and IBM's booth (N5223, N7207MR).

IBM solutions powering this Integrated e-Commerce Video Solution include IBM Business Process Manager, IBM WebSphere Commerce and IBM Cognos Business Intelligence.

More information on Smarter Commerce can be found at www.ibm.com/smarterplanet/us/en/smarter_commerce/overview/

To join the conversation, follow hashtag #smartercommerce on Twitter

About KIT digital, Inc.
KIT digital (NASDAQ: KITD) is a leading video technology and services company. The KIT Video Platform, the company's cloud-based video asset management system, enables enterprise, media & entertainment and network operator clients to produce, manage and deliver multiscreen socially-enabled video experiences to audiences wherever they are. KIT digital services nearly 2,500 clients in 50+ countries including some of the world's biggest brands, such as Airbus, The Associated Press, AT&T, BBC, BSkyB, Disney-ABC, Google, HP, Mediaset, MTV, News Corp, RCS MediaGroup, Sky Deutschland, Sky Italia, Telecom Argentina, Telecom Italia, Telefonica O2, Universal Studios, Verizon, Vodafone and Volkswagen. KIT digital maintains executive offices in New York and its operational headquarters in Prague, Czech Republic, with offices in 21 countries around the world. Visit the company at www.kitd.com or follow on Twitter at www.twitter.com/KITdigital.

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KIT digital Media Contact:
Daniel Goodfellow
SVP, Global Marketing and Communications
Tel. +1-917-513-6081
Email Contact

KIT digital Investor Contact:
Murray Arenson
SVP, Investor Relations & Corporate Initiatives
Tel. +1-646-553-4900
Email Contact

IBM Media Contact:
Amanda Carl
External Relations
Tel. +1-914-766-1362
Email Contact

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