DUBAI, United Arab Emirates, December 15 /PRNewswire/ --

- High rates of broadband and 3G network growth in global markets
continue to drive growth for leading provider of IPTV and video-based
interactive marketing solutions

KIT digital, Inc. (OTC Bulletin Board: KITD), a leading global provider
of Internet Protocol-based video enablement technologies, reported a number
of new customer wins across the company's regional offices. From Latin
America and Eastern Europe to the Middle East and Asia Pacific, KIT digital's
continued growth is being fueled by markets where broadband and 3G mobile
penetration is growing rapidly, and by the increasingly effective integration
of the company's recent acquisitions in more developed markets.

"In the context of a global economic downturn, we have continued to
achieve client growth by focusing on the efficiency and cost-effectiveness of
KIT digital's integrated IP video offering, across Internet, mobile and
set-top box devices," said Gavin Campion, president of KIT digital. "In a
tightening budget environment, we are seeing the marketing departments of
large companies turn to the greater measurability and transparency of new
media, and video is at the vanguard of nearly all new media implementations
these days."

"While we are expanding in developed, Western markets," continued
Campion, "many of the emerging markets in which we operate are experiencing
such fundamental improvements in broadband and 3G mobile penetration that
this trend appears to be superseding the general global economic slowdown."

KIT digital's proprietary, end-to-end technology platform helps major
corporations connect with their customers, partners and other key
stakeholders by leveraging video content online under their own brand, on
mobile devices, and through Internet-enabled television sets. The company
recently added a web-based content management system through it acquisition
of Australia-based Morpheum and an IPTV broadcast platform through the
acquisition of Czech Republic-based Visual Connection.

Certain recent client additions and expansions include:

Asia Pacific
    -- SyQic, in partnership with Telecom Malaysia, engaged KIT digital to
       manage key IP-based content feeds with KIT premium entertainment news
       product, WOW! TV;
    -- The new portal, named Yoonic, represents one of the first broadband TV
       initiatives in Malaysia;
    -- George Weston Foods, one of the largest food manufacturers in
       Australasia, awarded KIT digital the digital media enablement of its 
       GWF's flagship Dons Smallgoods brand;
    -- GE Money, the personal online financial services division of GE
       Electric, contracted KIT digital for interactive and below-the-line 
       Marketing program design and implementation in 2009.


    Europe
    -- In October, KIT digital's IP-based content solutions generated 4.5
       million streams on MSN.se, doubling the site's traffic to about 9 
       million streams. "This partnership has been very successful in helping 
       us grow audience volume and engagement, and we are looking forward to 
       building upon this valuable relationship," said Peter Holmlund, 
       executive producer of MSN Sweden;
    -- KIT digital was selected by Russia's top alternative 
       telecommunications provider, Sovintel, to redevelop Corbina.tv for 
       Sovintel's consumer  brand, Beeline;
    -- KIT digital will build, develop and manage Beeline's Corbina.tv,
       including an upgraded video player, enterprise digital asset and web 
       content management system; Corbina.tv is Russia's leading and fastest 
       growing free video service with both user-generated and premium 
       content.


    Latin America
    -- Cris Morena Group (CMG), one of Latin America's most prolific 
       producers of entertainment content, engaged KIT digital to produce the 
       region's first totally IP-based entertainment "channel";
    -- KIT enablement technologies will be deployed both for external
       customers and to increase B2B delivery of content to end distributors 
       of CMG content.


    Middle East
    -- KIT digital has entered into a distribution agreement with ARPU+, a 
       subsidiary of leading regional telecommunications provider Orascom, 
       for the launch of five new mobile TV channels over the MobiNil mobile 
       network in Egypt;
    -- KIT digital was engaged by Youm7, a successful and progressive media 
       and publishing group in Egypt, to provide technology and IP-based 
       video content enablement.


    United States
    -- Pacific Coast News (PCN), an entertainment news agency providing fast
       and efficient 24/7 global coverage of entertainment news through 
       pictures and video, retained KIT digital to enable and distribute its 
      content online and through mobile devices;
    -- The PCN partnership underscores KIT's leadership in the highly
       sought-after vertical of celebrity paparazzi video content, while 
       helping to expand PCN's international market reach.

Kaleil Isaza Tuzman, chairman and CEO of KIT digital, commented, "After
all the changes our company has undergone in 2008 - including operational
restructuring, re-capitalization and several acquisitions - it is exciting
and gratifying to see our new global team completely focused on adding new
clients and expanding existing client relationships."

"Given our unique enterprise product set, monthly recurring revenue
levels, positive operating cash flow, and positive trends within our
markets," continued Isaza Tuzman, "we believe we are poised to thrive and
increase our market share through this period of economic turmoil that could
see the field of competitors shrinking. While we recognize the trading and
liquidity challenges facing public companies of our size, the key for us is
to stay focused on our clients and the bottom line, as opposed to the
vicissitudes of the markets."

KIT digital management reiterates its forecast that the company's
consolidated fourth quarter revenue will be approximately US$8.5 million
(assuming a constant U.S. dollar), and confirms that the company has recently
crossed over to positive monthly operating EBITDA.

Based on a closing price of US$0.14 per share and 114.6 million
outstanding shares, KIT digital's market capitalization was approximately
US$16.0 million as of December 12, 2008. As previously announced, the company
expects to issue an additional 31.25 million shares pursuant to previous
financing and acquisition activities, such that pro forma shares outstanding
would be approximately 146 million. As such, pro forma market capitalization
was approximately US$20.4 million as of December 12, 2008.

For more information, please visit: www.kitd.com.

About KIT digital

KIT digital, Inc. (OTCBB: KITD) is a leading, global provider of
proprietary IP-based video enablement technologies and video-centric
interactive marketing solutions. Through its end-to-end platform, KIT digital
works closely with consumer brands, content providers and telcos to maximize
the value of video content via the Internet, mobile networks and IPTV set-top
boxes. The KIT VX platform allows clients to publish, manage and distribute
digital video content, build online/mobile communities and integrate
advertising. KIT offers businesses a full range of interactive marketing
solutions and KIT clients can access approximately 100 KIT-syndicated
channels and 40,000 KIT-syndicated videos. KIT digital clients include ABC
Disney, Associated Press, General Motors, IMG, Kmart, NASDAQ, News Corp, RCS,
Telefonica and Verizon. KIT digital has principal offices in Dubai, Melbourne
(Australia), Prague, Stockholm, New York and London. For additional
information, visit www.kitd.com.

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," "expects" or similar
expressions. Such forward-looking statements involve known and unknown risks
and uncertainties, including uncertainties relating to product development
and commercialization, 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 as anticipated, believed, estimated or expected.
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. KIT digital, Inc. 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.