HERZLIYA, Israel--(EON: Enhanced Online News)--Optibase Ltd. (NASDAQ: OBAS) today announced that it had recently received a notification from the Swiss Tax Authority of the assessment of a withholding tax obligation to its Swiss subsidiary Eldista GmbH in the amount of CHF 2.8 million Swiss Francs (approximately $3 million Dollars) including interest and penalties accruing from January 2011. Optibase owns an indirect, fifty-one percent (51%) ownership interest in Eldista GmbH which is held directly by Optibase's Luxembourg subsidiary, OPCTN, S.A.
Optibase is investigating the Swiss Tax Authority's basis for assessing the withholding tax obligation and intends to dispute any such tax obligation. In light of the early stage of the process, Optibase is currently unable to assess the final outcome of this withholding tax claim.
Optibase invests in the fixed-income real estate field and currently holds properties in the United States and Switzerland while continuously 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 with respect to the received withholding tax claim. 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. For a more detailed discussion of these and other risks that may cause actual results to differ from the forward-looking statements in this news 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.