Vizrt publishes update on tax assessment by the Israeli Tax Authorities – first tax assessment received

Bergen, Norway, January 2, 2014, Vizrt Ltd. (Oslo Main List: VIZ).

Vizrt Ltd. makes reference to the tax assessment performed by the Israeli Tax Authorities ("ITA"), as disclosed in the annual financial statements 2012, note 13 (g). In connection with this assessment, on December 31, 2013 the ITA issued a first tax assessment concerning the fiscal years 2008 and 2009.

The assessment received relates to the intellectual property ("IP") intercompany licensing agreement entered into by Vizrt in 2008. The ITA main claims are as follows:

a) the IP agreement should be reclassified as an asset sale of IP, rather than a license of IP in consideration for royalties over the useful life of the asset, and argues that this results in additional tax payments in the amount of NIS 243.3 million (approx. USD 70.2 million) for the year 2008, including interest; OR

b) if the IP intercompany agreement should not be reclassified and is thus considered as a license agreement, the royalty under this license agreement should be higher, and argues that this results in additional tax payments in the amount of NIS 55.9 million (approximately USD 16.1 million) for the year 2009, including interest.

The company believes it has a solid case opposing the ITA claims under each of the aforementioned alternatives a) and b), and intends to file an objection within the required 30 day period from the receipt of the assessment.

Following the filing of the objection, the ITA and the company have a twelve month period to reach a settlement. Should a settlement not be reached during this period, the ITA may issue an assessment order, which constitutes the final position of the ITA. Such legal order may be appealed to the Israeli District Court.

Deliberations in court are not limited in time. Payment of the tax in dispute is, however, not due before reaching a settlement or receipt of a final and non-appealable court ruling.

The company assesses its tax provision on a quarterly basis. As of September 30, 2013 the company's tax provision amounted to USD 13.0 million, which provision takes into account the ongoing tax dispute with the ITA as described herein and in the annual accounts for 2012. The company will, together with its advisors, consider the tax provision and provide an update, if necessary, in due course and no later than at the time of the release of the Q4 2013 financial statements.

The company intends to challenge the ITA’s assessment vigorously and defend its positions with respect to all matters raised by the ITA. However, at this time, the company is unable to predict the ultimate outcome of the proceedings.

Investor and media contact:

Martin Burkhalter / CEO /  +41 79 795 24 48 / MBurkhalter@vizrt.com

About Vizrt:

Vizrt provides real-time 3D graphics and asset management tools for the broadcast industry - from award-winning animations & maps to online publishing tools. Vizrt's products are used by the world's leading broadcasters and publishing houses, including: CNN, CBS, Fox, the BBC, BSkyB,  Al Jazeera, ITN, ZDF, Star TV, Network 18, TV Today, CCTV, NHK, The Globe and Mail, Times Online, The Telegraph, and Welt Online. Furthermore, many world-class production houses and corporate institutions such as the Stock Exchanges in New York and London use Vizrt systems.

Vizrt is a public company traded on the Oslo Main List: VIZ, ISIN: IL0010838154. For further information please refer to www.vizrt.com

Copyright © Vizrt. All rights reserved. This press release contains forward-looking statements with respect to the business, financial condition and results of operations of Vizrt and its affiliates. These statements are based on the current expectations or beliefs of Vizrt's management and are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those contemplated in such forward-looking statements. These risks and uncertainties relate to changes in technology and market requirements, the company’s concentration on one industry, decline in demand for the company’s products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. Vizrt undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.