NEW YORK, NY and DUBAI, UNITED ARAB EMIRATES — (Marketwire) — 08/31/09 — KIT digital, Inc. (NASDAQ: KITD), a leading global provider of on-demand software solutions for managing and monetizing Internet Protocol (IP) based video assets, today announced it closed the sale of an additional 594,000 shares of common stock at the recent public offering price of $7.00 per share, pursuant to the 15% over-allotment option exercised in full by the underwriters in connection with its public offering that closed on August 13, 2009.

The full exercise of the over-allotment option brings the total number of shares sold by KIT digital in its registered public offering to 4,004,000 and the aggregate net proceeds received by the company to approximately $22.2 million, after deducting the proceeds from secondary shares sold by unaffiliated stockholders, underwriting discounts, commissions and deal-related expenses payable by the company.

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.

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.

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 other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. Copies of the prospectus supplement relating to this offering may be obtained from Roth Capital Partners, LLC, attention: Equity Capital Markets, 24 Corporate Plaza Drive, Newport Beach, CA 92660, by telephone at +1-949-720-7194, or via email at rothecm@roth.com.

About KIT digital

KIT digital (NASDAQ: KITD) is a leading, global provider of on-demand Internet Protocol (IP)-based video asset management solutions. Through its end-to-end software platform, “KIT VX,” KIT digital enables enterprise clients to acquire, manage and distribute their video assets across the three screens of the computer Internet browser, mobile device and television via an IPTV set-top box. KIT digital clients’ use of the VX platform ranges from end-consumer focused video distribution to internal corporate deployments, including corporate communications, human resources, training, security and surveillance. KIT digital is a premier partner to Akamai Technologies, jointly providing an unparalleled suite of IP-based content management, storage and delivery. The KIT digital client base includes over 470 enterprise customers across 30 countries, including The Associated Press, Disney-ABC, Google, IMG Worldwide, Kmart, Nasdaq, News Corp, RCS, Sensis, Telefonica, 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.

KIT digital Media Contact:
Daniel Goodfellow
Tel. +1-646-873-3086
Email Contact

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