PTV.L Regulatory News (PTV)

18 May 2015

PeerTV PLC

("PeerTV" or the "Company")

Turnaround Plan for PeerTV Limited and Issue of Equity

(Amended Headline) - The announcement text is unchanged and is reproduced in full below.

PeerTV plc (AIM:PTV), a provider of technology solutions for the OTT (TV over the internet) market, and PCB (printed circuit board) production solutions wishes to update the market regarding its plans for achieving a turnaround in its OTT business and the issue of equity.

The performance of the Company's subsidiary PeerTV Limited has been disappointing since readmission in September 2011. The company has upgraded its Set Top Box product to the Android operating system and added a range of important features but has not been successful in achieving sales volumes or broadening its customer base in a substantial way.

The Company is now committed to a significant turnaround strategy under a plan drawn up by the new CEO of PeerTV Limited, Wes Wilcox. The implementation of the plan requires financial investment before cash flow from new business is generated and Yorkville Advisors has agreed to vary the terms of the Standby Equity Distribution Agreement (SEDA) so that additional funds can be drawn down to meet the costs of implementation.

The Company is now issuing the first new Ordinary Shares in connection with this arrangement. The directors are of course aware of the significant dilution which has taken place during the past ten months in particular and fully understand the views of the shareholders. However, the new issues of Ordinary Shares are being made to provide the business with the working capital it needs to build shareholder value.

In addition the balance sheet is being strengthened through the settlement of a number of liabilities through the issue of new shares

Accordingly company announces that it has issued new Ordinary Shares as follows:

a) 37,967,290 Ordinary shares at a price of 0.3598 pence per share to YA Global SPV Limited being a further drawdown of £130,000 under the SEDA announced on 30th July 2014.

b) 9,977,121 Ordinary shares at a price of 0.3314 pence per share to YA Global SPV Limited being a further conversion of principle of £31,755 and payment of accrued interest under the Convertible Note Facility announced on 10th February 2015.

c) 18,000,000 Ordinary Shares in part repayment of loans due by its subsidiaries PeerTV Limited and SM Digitek (1993) Limited at a price of 0.40 pence per share. The amount of liabilities being repaid is £72,000.

d) 13,333,333 Ordinary Shares at a price of 0.45 pence per share in settlement of a claim to the value of 360,000 NIS by a former customer of PeerTV Limited in regard to products ordered in 2010. Under the terms of the settlement, the claimant agreed to a monthly limit on the sale of the shares to 1/24th of the total shares issued to him.

e) 4,074,074 Ordinary shares at an average price of 0.45 p per share to two individual parties in settlement of fees and other liabilities due by the Company and its subsidiaries.

In aggregate, 83,351,818 Ordinary shares have been issued. Application has been made for the New Shares to be admitted to trading on AIM and admission is expected to occur at 8:00am on 22 May 2015 ("Admission").

Following Admission, the Company will have in issue 302,677,899 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. Therefore the total number of Ordinary Shares with voting rights in the Company will be 302,677,899. This figure may be used by Shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company.

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