Kit Digital

NEW YORK and DUBAI, United Arab Emirates, August 13, 2009 – KIT digital, Inc. (NASDAQ: KITD), a leading global provider of on-demand software solutions for managing and monetizing Internet Protocol (IP)-based video assets, announced today the pricing of its previously announced public offering of common stock at $7.00 per share. A total of 3,410,000 shares were sold by KIT digital, Inc., and a total of 550,000 shares were sold by unaffiliated selling stockholders. KIT digital has granted a 30-day option to the underwriter to purchase up to an additional 594,000 shares of common stock to cover over-allotments.

KIT digital intends to use the net proceeds of this offering primarily to finance acquisitions of competitive businesses, with a limited portion used to repay certain outstanding debts and for general corporate purposes, including the potential restructuring of existing earn-out arrangements related to prior acquisitions.

“We are very pleased to have completed this equity offering and at the same time facilitated the placement of shares for certain outside shareholders,” commented Kaleil Isaza Tuzman, chairman and chief executive officer of KIT digital, whose KIT Media Ltd. investment vehicle invested in the public offering. “Together with our newly effective NASDAQ Global Market listing, today’s announcement provides evidence of our leadership position in the IP-video content management industry and puts us in a position to execute on selected, accretive acquisitions.”

Roth Capital Partners LLC acted as the lead underwriter for the offering and Merriman Curhan Ford & Co. and Maxim Group LLC acted as co-managers.

A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on August 12, 2009. Any offer or sale will be made only by means of a written prospectus forming part of the effective registration statement. Copies of the final prospectus relating to the offering may be obtained from the offices of Roth Capital Partners by e-mail to rothecm@roth.com, by fax to (949) 720-7227 or by mail to 24 Corporate Plaza Drive, Newport Beach, CA, 92660, Attention: Equity Capital Markets.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to their registration or qualification under the securities laws of any such state or jurisdiction.

About KIT digital
KIT digital, Inc. (NASDAQ: KITD) is a leading global provider of on-demand content management solutions for managing IP-based video assets. Through its end-to-end software platform, KIT VX, KIT digital works closely with consumer brands, content providers and telcos to economize on costs and maximize the value of video content via the Internet, mobile networks and IPTV enabled televisions. The KIT VX platform allows clients to ingest, manage, distribute and publish 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 80 KIT-syndicated channels and 40,000 KIT-syndicated videos. KIT digital clients include Associated Press, Disney-ABC, General Motors, IMG, Kmart, NASDAQ, News Corp, RCS, Telefónica and Verizon. KIT digital has principal offices in Dubai, Melbourne (Australia), Prague, Toronto, New York and London. For additional information, please 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 any 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
Tel. +1-646-873-3086
daniel@kitd.com

KIT digital Investor Relations Contact:
Matt Glover
Liolios Group, Inc.
Tel. +1-949-574-3860
info@liolios.com
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