dollars although Tom Petty and the Heartbreakers a material portion of the company'srevenue

dollars, although assesses a material american girl lyrics displays portion of the company'srevenue is earned in other currencies.)KIT digital expects revenue for the fourth quarter ended December 31, 2008to exceed $9.0 million, increasing more than 67% over the previous quarterand at least 130% over the same quarter a year ago. The company expects toreport positive operating EBITDA for the full quarter. The company definesoperating EBITDA as the loss before non-cash, stock-based compensation,restructuring and non-recurring costs, impairment of property andequipment and depreciation and amortization. The increase in revenue andimprovement in operating cash flow are attributable to both organicgrowth and acquisitions.For fiscal 2008, ended December 31, 2008, the company expects to reportrevenue in excess of $23.0 million, an increase of at least 65% from theprevious year. At December 31, 2008, the company had approximately $4.4million in unrestricted cash and cash equivalents and no long-term debt.The company will provide further results in its complete fourth quarterand full-year earnings press release and conference call that will beannounced at a later date.Based on the operational foundation the company established in 2008 andits outlook for 2009, management expects fiscal 2009 revenue to increaseto more than $40.0 million, with an operating EBITDA margin of at least10%. Management expects that the company's operating EBITDA margin willincrease over time, as cost synergies from previous acquisitions arerealized and the company's fixed expenses are leveraged across a largerbase of clients and sales.KIT digital's board of directors has approved a reverse split of thecompany's common stock, and the company expects to obtain approvalforthwith from holders of a majority of the company's stock for thereverse split to occur at a ratio of 1:35 shares.

Based on the timing ofsuch stockholder approval and subject to the SEC filing process, thereverse split is expected to take effect in mid-February 2009.KIT digital management believes a reverse stock split benefitsstockholders, primarily because a higher stock price may qualify thecompany for a listing on the Nasdaq Capital Market exchange . Managementbelieves that except for its per-share price the company currently issubstantially in compliance with the requirements to obtain a Nasdaqlisting, and plans to embark on the listing application as soon aspracticable after the reverse split is effectuated."We see a number of benefits to this reverse stock split, includingcertain commercial opportunities which are easier to access as aNasdaq-listed entity," said Kaleil Isaza Tuzman, chairman and chiefexecutive officer of KIT digital breakdown petty . "We believe this is an opportune timeto take this action, having reached a material inflection point in termsof our business expansion, revenue growth, and cash flow don t do me like that petty . As promised bynew management at the outset of 2008, we exceeded $20.0 million inrevenue for the year and turned the corner to operating EBITDA-positivein the fourth quarter.""We continue to add major clients in markets that are rapidly adopting andexpanding broadband and 3G mobile networks, where there is increasingdemand for IP-based video and video-centric online advertising," addedGavin Campion, president of KIT digital free fallin . "We believe we are on track toexceed $40.0 million of revenue in 2009, with rising operating cash-flowmargins averaging at least 10% for the year."The reverse split will reduce the number of outstanding shares of KITdigital's common stock from approximately 146.1 million shares toapproximately 4.17 million shares.

Each stockholder will hold the samepercentage of the company's common stock immediately following the reversestock split as they held immediately prior to the reverse stock split . Nofractional shares will be issued in connection with the reverse stocksplit; a full share will be issued in lieu of fractional shares.Stockholders who hold their shares in brokerage accounts or "street name"will not be required to take any action to effect the exchange of theirshares Continental Stock Transfer & Trust Co free fallin petty . is the company's transferagent and will act as the exchange agent for the purpose of implementingany exchange of stock certificates in connection with the reverse split.The existing CUSIP number of KIT digital's common stock will automaticallyindicate the reverse split factor and any newly issued shares are expectedto have a new CUSIP number.The exercise price and the number of shares of common stock issuable underthe company's outstanding warrants and options, including those under thecompany's equity incentive plans, will be proportionately adjusted toreflect the reverse stock split.Additional information about the reverse stock split will be available inKIT digital's information statement to be filed with the Securities andExchange Commission shortly free falling petty . Once the information statement is cleared bythe SEC, and 20 days after it is mailed to non-consenting stockholders,KIT digital's common stock will begin trading on a post reverse splitbasis.While the company plans to effect the reverse stock split prior to the endof the second week of February 2009, subject to market and other customaryconditions, there can be no assurance that the reverse stock split will beconsummated or that it will achieve its intended effect of resulting in anincreased per-share price for KIT digital's common stock, or ultimately ina Nasdaq listing or any other intended benefits gone gator . The company reserves theright, in its discretion, to abandon the reverse split or Nasdaq listingapplication process at any time.Conference CallKIT digital management will summarize its 2009 operating plan and host aconference call to discuss the topics of this release at 10:00 a.m EST(3:00 p.m. GMT) on Thursday, January 15, 2009, followed by a question andanswer period.

To participate in the call, please dial +1 (800) 895-1085(North America) or +1 (785) 424 1055 (outside of North America) . Theconference call access code is "7KITDIGITAL." The management slideshowwill be presented via webinar at dial into the call and register for the webinar at least 5-10minutes prior to the scheduled start time to account for processing time.If you have any difficulty connecting to the conference call, pleasecontact the Liolios Group at +1 (949) 574-3860.For interested individuals unable to join the live conference call, areplay of the call will be available two hours after the conclusion of thelive call through February 15, 2009 by dialing into +1 (800) 677-7320(North America) or +1 (402) 220-0666 (outside of North America) hard promises . There isno access code required for the conference call replay heartbreakers lyrics . In addition, anonline archive of the call and the management slideshow will be availablefor 30 days afterwards through the Investor Relations section of theCompany's website at the Presentation of Operating EBITDAManagement uses operating EBITDA for forecasting and budgeting, and as aproxy for operating cash flow .