Rrsat Continues Global Expansion With the Acquisition of JCA, A London, UK-Based Company

Rrsat Continues Global Expansion With the Acquisition of JCA, A London, UK-Based Company

Strategic Acquisition Facilitates Creation of RRsat Europe in London, One of The World's Largest Media and Broadcasting Centers

AIRPORT CITY BUSINESS PARK, Israel, September 3, 2013 /PRNewswire/ --



RRsat Global Communications Network Ltd. [http://www.rrsat.com/?utm_source=PR_JCA ]
(NASDAQ: RRST), a leading provider of comprehensive digital content management
[http://www.rrsat.com/service/4/playout-end-to-end-content-management?utm_source=PR_JCA ]
and global content distribution [http://www.rrsat.com/global-network-map?utm_source=PR_JCA
] services to the television and radio broadcasting industry, today announced the
acquisition of JCA [http://www.jca.tv/index.php ], a London-based provider of content
management services [http://www.jca.tv/video_and_tv ]. This acquisition is fully aligned
with RRsat's growth strategy of becoming a global company with local presence in key
locations. The acquisition is expected to be accretive to RRsat's earnings within the
first full operational quarter post acquisition.



"This acquisition and the formation of RRsat Europe Ltd. are important milestones in
the implementation of our strategy to become a global company with local presence, closer
to our clients," commented Avi Cohen, RRsat CEO. "There are two major aspects to our
business: content management and content distribution. While the content distribution
aspect involves our state-of-the-art facilities in the U.S. and Israel, content
preparation and management requires a local presence working closely with our customers.
The addition of JCA's sophisticated local operation in London will enable RRsat to
leverage local talent and provide services specifically for content preparation and
content management to customers in Europe. This is an important asset that will expand our
scope of services and we are confident that it will enhance our leadership position in the
market."



"The effort to expand our local presence in key markets began with the acquisition of
SM2 in 2012. This gave us an expanded local presence in the United States, content
management and distribution of lucrative sports events, as well as access to top-tier
North American customers," added Mr. Cohen. "During 2013, we opened an office in Moscow,
augmenting our access to customers in Russia and the Commonwealth of Independent States.
Today, we are establishing a strong foothold in Europe, specifically in London, one of the
world's largest centers for media and broadcasting. The continued execution of this
strategy will allow RRsat to expand further, effectively leveraging our global
distribution infrastructure."



Strategic benefits of the JCA acquisition include:




- A solid business with impressive track record of growth, exceeding 400%
since JCA was acquired by TVP Group in 2004 reaching revenue of just under $10 million
(non-GAAP) during the last year as well as gross margins and profit margins that are
consistently higher than RRsat's.
- A talented management team, with over 30 years of industry experience, which
strengthens RRsat's senior management team. JCA's Managing Directors, Simon Kay and
Nick Pannaman, will remain with the organization as Managing Directors of RRsat Europe
Ltd., and will join RRsat's executive management team, reporting directly to RRsat's
CEO.
- A presence in London, a key strategic market and one of the premier
broadcasting centers in the world, providing access to customers in continental
Europe.
- A top-tier customer base, including BBC Worldwide, Sony DADC, Shine
International, Channel 4, Classic Media, DRG, Film4 as well as access to additional
higher tier local broadcasting customers in the U.K. and Europe.
- A broadening of RRsat's content management capabilities, including expanded
content preparation capabilities such as film restoration, ingest and transcoding,
content re-versioning, digital platform distribution and its bespoke Media Window
providing clients with their own on-line platform.


RRsat is acquiring 100% of TVP Group of which JCA is a wholly owned subsidiary. In
consideration for the acquisition, RRsat will pay $9 million in net cash. An additional
payment of $4.5 million will be deferred, conditional on business results including
revenue growth and profitability in the three years following the acquisition. Management
expects the acquisition to be accretive during the fourth quarter this year.



"Once we complete the integration of JCA, we plan to increase its core service and
expand its global customer base and services," added Mr. Cohen. "Our existing client base
will benefit from additional sophisticated content preparation services. We plan to take
advantage of the experienced local management team and their access to top tier clients in
the U.K and Western Europe and offer RRsat's complete set of content management and global
distribution services. Financially, we expect this acquisition to improve our overall
profitability."



RRsat management expects to fund this acquisition using cash on hand and through
expected operating cash flow of the acquired entity.



Simon Kay, JCA's Managing Director, stated: "We see that there will be tremendous
benefit from leveraging RRsat's content management and distribution capabilities and we
are excited to offer these sophisticated services to our clients. Evolving from being a
stand-alone local company to being part of a global business will enable us to offer a
greatly expanded service portfolio. We are committed to pursuing this opportunity and
maximizing our capabilities as part of the RRsat group."



Nick Pannaman, JCA's Managing Director added: "RRsat is a proven leader in this
rapidly growing industry, with state-of-the-art capabilities and an increasingly global
footprint. We are excited to become part of this dynamic organization that will allow us
to respond where we were unable to in the past. This move unlocks opportunity for our
customers, our team and our business as it will allow us to broaden both our portfolio and
customer base."



Teleconference



Management will be holding a special conference call on Tuesday, September 3rd at
9a.m. EDT in order to provide further information and answer any questions.



- Dial-in number from within the United States: 1- 877-941-1427



- Dial-in number from Israel: 1809-34-4019



- Dial-in number from the UK: 0800-358-5279



- Dial-in number (other international): 1-480-629-9664



- Playback, available until September 10, 2013 by calling 1-877-870-5176 (United
States) or 1-858-384-5517 (international). Please use pin number 4638117 for the replay.



- A live webcast is accessible at http://public.viavid.com/index.php?id=105963.



About JCA



JCA is a digital services specialist offering both video and digital TV and film
packages to the media industry. Services include film restoration, video servicing and
encoding / transcoding as well as an end-to-end digital asset management platform
servicing file-based needs. Specializing in digital file formats, HD and SD tape formats,
as well as digital delivery workflows and digital distribution, JCA works with clients
such as BBC Worldwide, Channel 4, DRG, Fremantle Media, Classic Media, ITV, Film4 and
Shine International. Established in 1989, JCA was acquired by TVP Group in 2004, of which
it is a wholly-owned subsidiary.



About RRsat Global Communications Network Ltd.



RRsat Global Communications Network Ltd. (NASDAQ: RRST) provides global, end-to-end,
content management and distribution services to the rapidly expanding television and radio
broadcasting industries, covering more than 150 countries. Through its RRsat Global
Network, composed of satellite and terrestrial fiber optic capacity and the public
Internet, RRsat provides high-quality and flexible global distribution services 24/7 to
more than 630 channels reaching multiplatform operators, Internet TV and direct-to-home
viewers worldwide and also offers occasional use services for sports, news and events with
a fleet of flyaways and over 10 transportable satellite news gathering services (SNG)
units. More than 130 television and radio channels use RRsat's advanced production and
playout centers comprising comprehensive media asset management services. Visit the
company's website http://www.rrsat.com [http://www.rrsat.com/?utm_source=PR_JCA ]



Safe Harbor Statement



This press release contains forward looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. These forward-looking statements involve known and unknown risks
and uncertainties and are based on current expectations, assumptions, estimates and
projections about the companies and the industry as of the date of this press release. We
undertake no obligation to update forward-looking statements to reflect subsequent
occurring events or circumstances, or to changes in our expectations, except as may be
required by law. Forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially from those contemplated by the
forward-looking statements, including the risks indicated in our filings with the
Securities and Exchange Commission (SEC). For more details, please refer to our SEC
filings and the amendments thereto, including our Annual Report on Form 20-F for the year
ended December 31, 2012 and our Current Reports on Form 6-K.




Company Contact Information:
Shmulik Koren, CFO
Tel: +972-3-9280808
Shmulik.Koren@rrsat.com

Investor Relations Contacts:
Hayden / MS-IR LLC
Brett Maas / Miri Segal-Scharia
+1-646-536-7331 / +1-917-607-8654
Brett@haydenir.com / msegal@ms-ir.com


RRSat Global Communications Network Ltd


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