KIT digital Adds Shareholder Representation to Board of Directors

NEW YORK, NY, Aug 07 (Marketwire) --
KIT digital, Inc. (NASDAQ: KITD), a leading video management software and
services company, today announced that shareholders Seth W. Hamot, the
Managing Member of Roark, Rearden & Hamot, LLC, the General Partner of
Costa Brava Partnership III L.P., and K. Peter Heiland, Managing Director
of JEC Capital Partners, LLC, have joined the company's Board as new
directors. Additionally, Director Joseph E. Mullin III has resigned.

"Seth and Peter bring demonstrated records of success in helping
companies create value, and we welcome their insights and experience to
the Board and to the company," said Bill Russell, non-executive Chairman
of the Board of KIT digital.

"These appointments are in keeping with the strategic vision laid out in
recent months for reconstituting our Board and realigning our business,
and represent another major step forward for KIT digital," said Chief
Executive Officer Barak Bar-Cohen.

Seth Hamot, through various entities, owns approximately 7% of the
outstanding shares of KIT digital. Mr. Hamot has extensive experience as
a public company director, currently serving as Chairman of the boards of
SPY Inc. and ISC8, Inc. Mr. Hamot previously served as Chairman of the
boards of TechTeam Global, Inc. and Bradley Pharmaceuticals, Inc., and on
the board of CCA Industries, Inc.

"I am enthusiastic to join and work with the KIT digital Board at this
important time in the company's history," said Mr. Hamot. "I look forward
to helping ensure that company and shareholder interests align with one
another for the benefit of all KIT digital stakeholders."

Peter Heiland, through various entities, owns approximately 8% of the
outstanding shares of KIT digital. Prior to founding JEC Capital
Partners, he spent 22 years operating a global technology company. He has
also served on boards of public and private technology companies,
including GSI Group and Integrated Dynamics Engineering.

"I am excited to join KIT digital's Board and look forward to supporting
the conclusion of the company's strategic review process. I believe that
the company is underappreciated in the public market and I am resolved to
work together with the other members of the Board to change that for the
benefit of all stakeholders," said Mr. Heiland.

In connection with Messrs. Hamot and Heiland joining the KIT digital
Board, KIT digital, Mr. Hamot, Costa Brava, Mr. Heiland, JEC, and their
related parties have entered into a standstill agreement. Under the
agreement, the Costa Brava parties and JEC parties will support KIT
digital's Board nominees for the 2012 annual meeting of shareholders and
they will refrain from taking certain adverse actions against KIT
digital's Board. Similarly, the Board will nominate and support each of
Mr. Hamot and Mr. Heiland for the 2012 annual meeting of shareholders.
The restrictions and nomination provisions will run at least through KIT
digital's 2012 annual meeting of shareholders and will potentially apply
through the 2013 annual meeting. The standstill agreement itself will
terminate following the 2013 annual meeting of shareholders and is
subject to various other terms and conditions. The full standstill
agreement is being filed by the company with the Securities and Exchange
Commission under a Form 8-K.

The company and KIT digital's Board thank Mr. Mullin for his service. Mr.
Mullin's resignation did not result from any disagreement relating to the
company's operations, policies or practices. The company is continuing
its search for additional qualified independent directors to help guide
and grow its business.

Strategic Transaction Process

Additionally, the Board of Directors unanimously determined to have the
entire Board manage the company's on-going strategic process to a
conclusion. The Board, therefore, determined that the Strategic
Transaction Committee was no longer necessary and elected to dissolve the
Board's Strategic Transaction Committee. The entire Board will determine
how to proceed and will address several expressions of interest received
from strategic parties and financial sponsors concerning the possible
purchase of the company or various parts of its business.

"We believe the on-going strategic review process will benefit from the
attention of the entire Board," Mr. Russell added, "and that the best
interests of shareholders will be served by moving the process forward
swiftly and informing shareholders of its outcome expeditiously."

About KIT digital, Inc.

KIT digital (NASDAQ: KITD) is a leading video management software 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 Media
Group, Sky Deutschland, Sky Italia, Telecom Argentina, Telecom Italia,
Telefonica O2, Universal Studios, Verizon, Vodafone and Volkswagen. KIT
digital maintains headquarters in New York City and offices in more than
a dozen countries around the world. Visit the company at www.kitd.com or
follow on Twitter at www.twitter.com/KITdigital.

New Director Biographies

Seth W. Hamot is the Managing Member of Roark, Rearden & Hamot LLC, the
general partner of Costa Brava Partnership III L.P., an investment fund
that typically focuses on companies neglected by research analysts and
with enterprise values ranging from $100 million to $1 billion. The fund
invests in balance sheet restructurings, financially or operationally
distressed issuers, securities of bankruptcies and liquidations, and
securities of companies facing complicated legal issues. Mr. Hamot
currently serves as the Chairman of the boards of Spy, Inc., a designer
and distributor of premium sunglasses and goggles sold internationally,
and ISC8, Inc., a corporation engaged in the design, development,
manufacture and sale of cutting-edge internet security systems and 3D
stacked microchips for defense, security and commercial applications.
Previously, Mr. Hamot served as Chairman of the Board of Bradley
Pharmaceuticals, a specialty pharmaceutical company with products focused
on the dermatology and gastroenterology markets, until that company was
sold in February 2008. Mr. Hamot was also the Chairman of the Board of
TechTeam Global, Inc., a leading provider of IT outsourcing and business
process outsourcing services to large and medium businesses, as well as
government organizations, until December 2010, when TechTeam was sold to
Stefanini IT Solutions. Mr. Hamot also served as a director of CCA
Industries, Inc. from July 2007 until December 2009, and has served as a
director of distressed companies and on both official and ad hoc creditor
committees. Mr. Hamot has a degree in Economics from Princeton University.

K. Peter Heiland, age 50, is a Managing Director of JEC Capital Partners
(JEC), a technology focused investment firm that was founded in 2009. JEC
Capital Partners has been an investor in several private and public
technology companies, recently leading the recovery of shareholder value
in Miranda Technologies (MT.TO). JEC was also a significant shareholder
of the GSI Group (NASDAQ: GSIG), participating in the statutory Equity
Committee during the GSI's Chapter 11 process, engineering its
recapitalization, and remaining active as a board member in the
reorganized company. Prior to founding JEC Capital Partners, Mr. Heiland
was the founder and CEO of Integrated Dynamics Engineering (IDE). IDE
designs, manufactures, and sells environmental control systems, robotics,
and motion control systems for semiconductor metrology and lithography
equipment. In January of 2008, IDE was acquired by Aalberts Industries
(AMS: AALB).

Important Cautions Regarding Forward-Looking Statements
This press
release contains certain "forward-looking statements" related to the
businesses of KIT digital, Inc., which can be identified by the use of
forward-looking terminology, such as "believes," "estimates," "expects,"
"intends," "anticipates," "will continue," "projects," "plans" and
variations of such words or similar expressions, but their absence does
not mean that the statement is not forward-looking. Statements in this
announcement that are forward-looking include, but are not limited to,
statements made concerning our potential, our strategic process and our
search for new directors. Such forward-looking statements involve known
and unknown risks and uncertainties, including uncertainties relating to
product development and commercialization, integration of acquired
businesses, the ability to obtain or maintain patent and other
proprietary intellectual property protection, market acceptance, future
capital requirements, regulatory actions or delays, competition in
general and other factors that may cause actual results to be materially
different from those described herein. Certain of these risks and
uncertainties are or will be described in greater detail in our public
filings with the U.S. Securities and Exchange Commission. Except as
required by U.S. federal securities laws, KIT digital is not under
obligation to (and expressly disclaims any such obligation to) update or
alter its forward-looking statements whether as a result of new
information, future events or otherwise.

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

KIT digital Investor Contact:

Murray Arenson
SVP, Investor Relations & Corporate Initiatives
Tel. +1-646-553-4900
Murray.Arenson@kit-digital.com

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