HERZLIYA, Israel–(Business Wire)–Optibase Ltd. (NASDAQ: OBAS) (the “Company” or “Optibase”)
today announced that its wholly owned German subsidiary, Optibase
Bavaria GmbH Co. KG, a German partnership (the “Purchaser“),
completed the acquisition of two (2) supermarkets in Bavaria, Germany
(the “Properties“) from an unrelated third party (“Seller“).
Pursuant to the terms of the purchase agreement with the Seller (“Purchase
Agreement“), the acquisition of the Properties completes the
purchase of twenty-seven (27) supermarkets referred to in the press
release dated June 2, 2015.

The purchase price paid by the Purchaser for the Properties was Four
Million Seven Hundred and Fifty Thousand Euro (EUR 4,750,000), which is
One Million Euro (EUR 1,000,000) less than what was stipulated in the
press release dated June 2, 2015.

The Purchaser financed the purchase price of the Properties with a loan
from a German real estate bank (“Lender“). The total amount
borrowed from the Lender for the acquisition of all properties under the
Purchase Agreement with the seller is Twenty Million Euro (EUR
20,000,000), and the term is approximately five (5) years.

Amir Philips, CEO of Optibase commented, “We are happy to have been able
to close the two additional assets and complete the acquisition of the
portfolio in full and at a reduced price. Having done this, we will now
concentrate on operating the portfolio, improving its net cash flow and
other fundamentals.” Mr. Philips concluded, “We are watching the recent
European economic developments which may affect the markets we are
active in and considering future acquisitions in those markets.”

For further details on the Transaction, see the Company’s report on Form
6-K as filed with the Securities and Exchange Commission on June 2, 2015.

About Optibase

Optibase invests in the fixed-income real estate field and currently
holds properties in Switzerland and in Miami, Texas and Philadelphia,
USA and is currently looking for additional real estate investment
opportunities. Optibase was previously engaged in the field of digital
video technologies until the sale of its video solutions business to
Optibase Technologies Ltd., a wholly owned subsidiary of VITEC
Multimedia (“Vitec”) in July 2010. For further information, please visit www.optibase-holdings.com.

This press release contains forward-looking statements concerning our
marketing and operations plans. All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. All forward-looking statements in this press
release are made based on management’s current expectations which
involve risks, uncertainties and other factors that could cause results
to differ materially from those expressed in forward-looking statements.
These statements involve a number of risks and uncertainties including,
but not limited to, difficulties in finding suitable real-estate
properties for investment, availability of financing for the acquisition
of real-estate, difficulties in leasing of real-estate properties,
insolvency of tenants, difficulties in the disposition of real-estate
projects, risk relating to collaborative arrangements with our partners
relating to our real-estate properties, risks relating to the full
consummation of the transaction for the sale of our video solutions
business, general economic conditions and other risk factors. For
a more detailed discussion of these and other risks that may cause
actual results to differ from the forward looking statements in this
press release, please refer to Optibase’s most recent annual report on
Form 20-F. The Company does not undertake any obligation to
update forward-looking statements made herein.

View source version on businesswire.com: http://www.businesswire.com/news/home/20150708005547/en/

Media Contact:
Optibase Ltd.
Amir
Philips, CEO
011-972-73-7073-700
info@optibase-holdings.com
or
Investor
Relations Contact:
for Optibase
Marybeth Csaby
+1-917-664-3055
Marybeth.Csaby@gmail.com