KIT digital Acquires Accela Communications

PRAGUE, Czech Republic – September 9, 2010 – KIT digital, Inc. (NASDAQ: KITD), the leading global provider of video asset management solutions (VAMs) for multi-screen IP-based delivery, has acquired Accela Communications, Inc. (based in Southborough, Massachusetts).

“This acquisition extends our leading market share position for enterprise-level video asset management products and services across the multiple screens of the mobile and tablet device, browser and IP-enabled television,” said KIT digital’s chairman and CEO, Kaleil Isaza Tuzman. “This is consistent with our acquisition strategy of geographical and sales vertical expansion, and we expect it to be accretive on both a revenue and cash-flow basis.”

Accela Communications Acquisition
Accela Communications is a privately-held provider of on-demand, video-based enablement and measurement tools.

“Our acquisition of Accela is highly synergistic,” said Lou Schwartz, head of the Americas for KIT digital. “Accela enhances KIT digital’s market scope through its deep experience in particular industry vertical segments amongst its client base: healthcare, information technology, and financial services. Accela also adds strong sales channel partnerships. At the same time, KIT digital brings multi-screen VAMs capabilities which can be upsold to Accela’s enterprise customer base, along with other extended solutions and services.”

Accela’s online video platform, AccelaCast, supports the production, delivery and measurement of interactive video and multimedia communications, providing corporate clients greater audience engagement and learning across a wide range of industries.

AccelaCast allows organizations to create unique multimedia programs through customized design, navigation and data collection options. These clients can then manage and monetize those interactions through the AccelaWorks data acquisition, measurement, classification and delivery system.

Accela serves more than 150 corporate customers, including Alcatel-Lucent, CA, EMC, Hitachi Data Systems, Haymarket Medical, HP, IDG, International Medical Press, McAfee, Motorola, Multiple Sclerosis Association of America, Rogers, SAP and Xerox. Accela sells both directly and through value-added reseller relationships--sales channels which will now apply to the broader KIT VX solution set sold by KIT digital.

Bill Reinstein, Accela president and CEO, commented: “We are very excited to be teaming with the global leader in IP video management, particularly given KIT digital’s strong mobile, live event and connected TV delivery capabilities. Our collective strengths should yield exceptional value and unique benefits for our newly combined global customer base. Our organizations also share a customer-centric culture and a disciplined approach to operational and financial management."

KIT digital will progressively transition Accela’s clients to the data layer of its VX-one software platform, while maintaining AccelaCast's client-facing reporting, measurement and interactive audience engagement modules.

Southborough, Massachusetts will continue to be home to Accela’s 30+ employees, and will become KIT digital's New England sales and account management hub.

The acquisition of Accela Communications closed Wednesday, September 8, 2010.

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About Accela Communications, Inc.
Accela Communications is a marketing technology company that provides software and services to produce, deliver and measure interactive, IP-based video communications across a wide range of industries including healthcare, information technology, financial services and marketing services. The company creates opportunities for market and audience engagement with the AccelaCast® multimedia platform and the AccelaWorks® data acquisition, measurement, classification and delivery system. The company generates actionable results through its Healthcare Solutions Group for all of the top twenty pharmaceutical companies, as well as for customers like HP, EMC, SAP, Thermo Fisher Scientific and others. For more information about Accela, visit www.accelacommunications.com.

About KIT digital, Inc.
KIT digital (NASDAQ: KITD) is a leading global provider of video asset management solutions (VAMs) for multi-screen IP-based delivery. KIT VX-one, the company's family of end-to-end software platform solutions, enables enterprise clients to acquire, manage and distribute video assets across the three screens of today's world: the personal computer, mobile device, and IPTV-enabled television set. The application of VX ranges from commercial video distribution to internal corporate deployments, including corporate communications, human resources, training, security and surveillance. KIT digital's client base includes more than 1,000 customers across 40+ countries, including The Associated Press, Best Buy, Bristol-Myers Squibb, Disney-ABC, FedEx, General Motors, Google, Hewlett-Packard, Home Depot, IMG Worldwide, ESPN Star, MediaCorp, News Corp, Telefonica, Verizon and Vodafone. KIT digital is headquartered in Prague, and maintains principal offices in Atlanta, Beijing, Buenos Aires, Cairo, Chennai, Cologne, Delhi, Dubai, Kolkata, London, Melbourne (Australia), Mumbai, New York, Singapore, Stockholm and Toronto. For additional information, visit www.kitd.com or follow the company on Twitter at www.twitter.com/KITdigital.

KIT digital Forward-Looking Statement
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 “anticipates”, "believes", “estimates”, "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 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 Contact:

Adam Davis
Global Communications Manager
Tel. +1-609-468-9500
adam.davis@kitd.com

KIT digital Investor Relations Contact:

Matt Glover or Geoffrey Plank
Liolios Group, Inc.
Tel. +1-949-574-3860
info@liolios.com

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