Extension of bank guarantee

12 Dec 2008 09:20

12 December 2008 iPoint-media plc ("iPoint" or the "Company") Extension of bank guarantee

Further to the announcement made on 26 November 2008, iPoint (AIM:IPNT), a provider of interactive video applications and delivery platforms for web, 3G mobile and media, announces that Nisko Projects Electronics & Communications (1990) Ltd ("Nisko") has agreed to extend the period of the bank guarantee given by it until 31 December 2009.

The Company currently has a credit facility of up to NIS 7 million with United Mizrahi Bank Ltd (the "Bank"). The repayment of the Company's debt to the Bank is guaranteed by Nisko, the Company's largest shareholder. By a letter dated 25 August 2006, Nisko agreed that it would not withdraw or otherwise impair the guarantee before 31 December 2008. Nisko has now extended the period of the guarantee until 31 December 2009, but the guarantee will be reduced from approximately NIS 7 million to NIS 3.5 million. Both Nisko's board of directors and audit committee have approved the extension. In addition, in reliance on the Regulations (Relief Regarding Transactions with interested Parties), 2000 (the "Regulations"), promulgated under the Israeli Companies Law, 1999, Nisko has issued an immediate report describing the terms of the extension. Under Israeli law, shareholders who are interested in at least one per cent. of Nisko's share capital or voting rights, have the right to object to the reliance on the Regulations within 14 days of the publication of the immediate report. If such an objection is received, Nisko will be obliged to call a shareholder meeting to seek the approval of shareholders.

For further information:iPoint-media plc +(0) 972 544 450 667 Muki Geller +(0) 972 3 607 4444 Simon Marks John East & Partners Limited +44 (0) 207 628 2200 David Worlidge/Bidhi Bhoma Note to Editors

iPoint's 3G video calling platforms offer a flexible means of delivering interactive video calling services. The Company's platforms are currently used by leading mobile operators, service providers and broadcasters in Europe and Asia Pacific.