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I n v e s t m e n t H i g h l i g h t s Poised for rapid growth with leading solution in the mHealth (mobile health) industry by leveraging targeted social media marketing Personalized big data capabilities Received regulatory clearance/approval in four major markets (FDA, Health Canada, CE Mark and TGA [Australia]) Multiple recurring revenue streams with razor / razor blade model Attractive valuation relative to other digital health data solutions: Fitbit (NYSE: FIT) at ~$2.5B market cap or ~22X EPS; UnderArmour (NYSE: UA) acquired MyFitnessPal for $475M or ~6X number of downloads M a r k e t O p p o r t u n i t y Vast and growing need for diabetes monitoring with the number of diabetics worldwide expected to grow from ~415M to ~642M by 2040 (Source: IDF Diabetes Atlas 7th edition, 2015) Enormous demand “upstream” to apply “user-centric” Dario solutions to broader health markets C o m p a n y O v e r v i e w DarioHealth Corp. is a leader in digital health self-management solutions, delivering the ability to combine and analyze consumer health data to personalize treatment and advance medical knowledge. The Dario™ Blood Glucose Monitoring System is a platform for diabetes management that combines an all-in-one blood glucose meter, native smart phone app, website portal and a wide variety of treatment tools to support more proactive and better informed decisions by users living with diabetes, their doctors and healthcare systems. $67 $175 $270 $308 $568 $669 $728 $838 $1,007 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 Q3 2016 2016 Q4 2016 Q1 2017 250 4,400 Mar-16 Sep-16 7,000 8,900 Mar-17 Dec-16 2,300 Jun-16 ~95% of users in the U.S. who download the app purchase the device Experiencing early traction in the U.S. market since launch in March 2016 — ~18,700 registered users as of 12/31/2016 — ~18,500 devices purchased by 9/30/2016 Revenue of $150 to $750 per user per year DarioHealth Corp. (Nasdaq: DRIO) Investor Fact Sheet $ in thousands 31/3/17 (unaudited) 31/12/16 Cash & cash equivalents $2,817 $1,093 Total Assets $5,985 $3,872 Liability related to warrants $28,000 $7,488 Total liabilities $2,752 $10,413 Shareholders’ equity (deficiency) $3,233 $6,541 Erez Raphael, Chairman & CEO DarioHealth Corp. 9 Halamish Street North Industrial Park Caesarea 3890000 Israel Tel: 972 4 770 4055 www.mydario.com [email protected] S e l e c t F i n a n c i a l s a n d F a c t s Nasdaq Ticker: DRIO Closing Price at 5/19/17: $2.69 52-Week Range: $2.42-$5.50 Shares (5/19/17) O/S: 9.6M Est. Public Float: 4.3M Market Cap (5/19/17): $25.8M FY16 Revenue: $2.8M Cash (12/31/16): $1.1M Cash/Share (12/31/16): $0.19 Fiscal Year-end: 12/31 Balance Sheet Highlights Quarterly Revenue Dario Complete Competitive Solution Revenue Model - Multiple Recurring Revenue Streams Monthly Users In the U.S. Scalable Disease Management Platform Diabetes Lifestyle Management. License and Disposables Predictive Analytics Advanced features based on predictive analytics. Blood glucose level prediction. Sale of disposable strips under subscriptions. Sale of added value features Sale of service on top of the platform. Meta-analysis for Payers and HMOs, online monitoring for insurers. Help providers to perform an efficient management of diabetic population. $ in thousands Source: The New Science of Personalized Medicine, PricewaterhouseCoopers, 2009 Income Statement Highlights US$ in thousands Q4 2016 Q4 2015 % chg FY 2016 FY 2015 % chg Revenues $838 $308 +172 $2,803 $823 +241 Op income / (loss) ($3,834) ($1,862) +106 ($11,101) ($7,698) +44 Net income (loss) ($5,238) ($1,672) +213 ($10,867) ($7,142) +52 Investor Relations Contacts: Hayden IR Brett Maas: (646) 536-7331 [email protected] Website: www.haydenir.com Engagement Highly Engaging User App Monitoring Blood Glucose Meter / Sync Enabled Population Population Relevant to Solution Management Cloud Disease & Population Management My Dario app leverage on real time data and 100% connectivity with great features like estimated HBA1C, carbs counting, Hypo alert with GPS location etc… Dario is the only true native mobile connected glucose monitor with all in one kit (lancet, strips and the meter) in all in one little, trusty device. DarioCare scales up into diabetes population management allowing plans and caregivers access to all users and 100% of the data. Dario different applications can address wider population – T1, T2 and pre-diabetes

DRIO Investor Fact Sheet 28May17dariohealth.investorroom.com/download/DRIO+Investor+Fact+Sheet+… · Q3 2015 Q4 2015 Q1 2016 Q2 Q3 2016 2016 Q4 2016 Q1 2017 250 4,400 Mar-16 Sep-16

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Page 1: DRIO Investor Fact Sheet 28May17dariohealth.investorroom.com/download/DRIO+Investor+Fact+Sheet+… · Q3 2015 Q4 2015 Q1 2016 Q2 Q3 2016 2016 Q4 2016 Q1 2017 250 4,400 Mar-16 Sep-16

Investment Highlights Poised for rapid growth with leading solution in the mHealth (mobile health) industry by leveraging targeted

social media marketing Personalized big data capabilities Received regulatory clearance/approval in four major markets (FDA, Health Canada, CE Mark and TGA

[Australia]) Multiple recurring revenue streams with razor / razor blade model Attractive valuation relative to other digital health data solutions: Fitbit (NYSE: FIT) at ~$2.5B market cap or

~22X EPS; UnderArmour (NYSE: UA) acquired MyFitnessPal for $475M or ~6X number of downloads Market Opportunity

Vast and growing need for diabetes monitoring with the number of diabetics worldwide expected to grow from ~415M to ~642M by 2040 (Source: IDF Diabetes Atlas 7th edition, 2015)

Enormous demand “upstream” to apply “user-centric” Dario solutions to broader health markets

Company Overview DarioHealth Corp. is a leader in digital health self-management solutions, delivering the ability to combine and analyze consumer health data to personalize treatment and advance medical knowledge. The Dario™ Blood Glucose Monitoring System is a platform for diabetes management that combines an all-in-one blood glucose meter, native smart phone app, website portal and a wide variety of treatment tools to support more proactive and better informed decisions by users living with diabetes, their doctors and healthcare systems.

$67$175

$270 $308

$568$669 $728 $838

$1,007

Q12015

Q22015

Q32015

Q42015

Q12016

Q2 Q32016 2016

Q42016

Q12017

250

4,400

Mar-16 Sep-16

7,0008,900

Mar-17Dec-16

2,300

Jun-16

~95% of users in the U.S. who download the app purchase the device

Experiencing early traction in the U.S. market since launch in March 2016 — ~18,700 registered users as of 12/31/2016 — ~18,500 devices purchased by 9/30/2016

Revenue of $150 to $750 per user per year

DarioHealth Corp. (Nasdaq: DRIO) Investor Fact Sheet

$ in thousands 31/3/17

(unaudited) 31/12/16

Cash & cash equivalents $2,817 $1,093

Total Assets $5,985 $3,872

Liability related to warrants $28,000 $7,488

Total liabilities $2,752 $10,413

Shareholders’ equity (deficiency) $3,233 $6,541

Erez Raphael, Chairman & CEO DarioHealth Corp. 9 Halamish StreetNorth Industrial Park

Caesarea 3890000

Israel

Tel: 972 4 770 4055

[email protected]

Select Financials and Facts

Nasdaq Ticker: DRIO Closing Price at 5/19/17: $2.69 52-Week Range: $2.42-$5.50 Shares (5/19/17) O/S: 9.6M Est. Public Float: 4.3M

Market Cap (5/19/17):

$25.8M

FY16 Revenue: $2.8M Cash (12/31/16): $1.1M Cash/Share (12/31/16): $0.19 Fiscal Year-end: 12/31

Balance Sheet Highlights

Quarterly Revenue

Dario Complete Competitive Solution

Revenue Model - Multiple Recurring Revenue Streams

Monthly Users In the U.S.

Scalable DiseaseManagement Platform

Diabetes LifestyleManagement.License and Disposables

Predictive Analytics

Advanced features based on predictive analytics. Blood glucose level prediction.

Sale of disposable strips under subscriptions.Sale of added value featuresSale of service on top of the platform.

Meta-analysis for Payers and HMOs, online monitoring for insurers.Help providers to perform an efficient management of diabetic population.

$ in thousands

Source: The New Science of Personalized Medicine, PricewaterhouseCoopers, 2009

Income Statement Highlights US$ in thousands Q4 2016 Q4 2015 % chg FY 2016 FY 2015 % chg Revenues $838 $308 +172 $2,803 $823 +241

Op income / (loss) ($3,834) ($1,862) +106 ($11,101) ($7,698) +44

Net income (loss) ($5,238) ($1,672) +213 ($10,867) ($7,142) +52

Investor Relations Contacts: Hayden IR Brett Maas: (646) 536-7331 [email protected] Website: www.haydenir.com

EngagementHighly Engaging User App

MonitoringBlood Glucose Meter /

Sync Enabled

PopulationPopulation Relevant to Solution

ManagementCloud Disease &

Population Management

My Dario app leverage on real time data and 100% connectivity with great features like estimated HBA1C, carbs counting, Hypo alert with GPS location etc…Dario is the only true native mobile connected glucose monitor with all in one kit (lancet, strips and the meter) in all in one little, trusty device.DarioCare scales up into diabetes population management allowing plans and caregivers access to all users and 100% of the data.Dario different applications can address wider population – T1, T2 and pre-diabetes

Page 2: DRIO Investor Fact Sheet 28May17dariohealth.investorroom.com/download/DRIO+Investor+Fact+Sheet+… · Q3 2015 Q4 2015 Q1 2016 Q2 Q3 2016 2016 Q4 2016 Q1 2017 250 4,400 Mar-16 Sep-16

The foregoing compilation relates to DarioHealth Corp. and contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this document, the words "anticipate," "believe," "estimate," "expect," and similar expressions as they relate to DarioHealth or its management, are intended to identify such forward-looking statements. DarioHealth’s actual results, performance or achievements could differ materially from the results expressed in, or implied by, these forward-looking statements. For more detailed information the reader is referred to DarioHealth’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and other related documents filed with the Securities and Exchange Commission. This does not constitute an offer to buy or sell securities by the Company and is meant purely for informational purposes. Hayden IR, (HIR), its affiliates, officers, directors, subsidiaries and agents have been compensated by the Company for the creation of this docume nt. HIR has relied upon information received from the Company, which, although believed to be reliable, cannot be guaranteed. This information is not an endorsement of the Company by HIR. HIR is not responsible for any claims made by the Company. You should independently investigate and fully understand all risks before investing.

Executive Leadership

Dario SMART Diabetes Management Solution

Erez Raphael, Chairman and CEO Mr. Raphael has over 20 years of systems and software development experience in various industries including mobile, life science, medical device, health IT, mHealth and digital health solutions. He previously held executive and management positions in product management, technology, innovation, intellectual property, development and operations at Amdocs (NYSE: DOX), Nokia Siemense, RedB and other companies, with a proven track record in bringing new technologies and innovations to market. Currently, he is developing and commercializing the organization’s flagship product – the Dario Smart Diabetes Management Solution – an all-in-one glucose meter and application. Mr. Raphael is driven and focused to developing innovate digital health solutions for people with chronic health conditions through mobile and digital technologies. In addition, as the CEO of publicly traded company, he holds extensive experience in capital markets including raising capital and investor relations. Zvi Ben-David, Chief Financial Officer, Secretary and Treasurer Mr. Ben-David has 25 years of financial and accounting experience, particularly with public and private medical device public companies. He previously served as corporate VP and CFO of Given Imaging Ltd., a medical diagnostic company, where he was a part of the founding team and helped lead the company’s growth from a start up to a $65M annual revenue commercial enterprise as well as its successful initial and follow-on public offerings. Following his tenure at Given, he served as CFO of Ultrashape Medical Ltd., where he led the company through two major rounds of funding totally $35M to an initial public offering on the Tel Aviv Stock Exchange and ultimately its acquisition by Syneron Medical. Recently, Mr. Ben-David has been an independent medical device entrepreneur and investor.

Leveraging social media to reach millions quickly and at a relatively low cost compared to traditional media

Near-term Growth Strategy

Steady and consistent product roll-out over the next 18 months to deliver user-centric, personalized

digital health solutions to humans

Disruptive Digital Marketing Strategy

Completely integrated all-in-one device with extreme levels of accuracy that fits right in your pocket

Innovators share the common traits of rapid growth, market dominance and premium valuations

Smart MeterThe simple-to-use Dario Smart Glucose Meter automatically

tracks your blood sugars with a tiny meter that plugs into your

phone’s audio jack

StripsEach strips cartridge holds 25 disposable strips. Reloading

your strips is simple, just pull out the old cartridge and insert a

new one.