March 2015

INVESTOR RELATIONSPRESENTATION

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Confidential 2

Forward Looking Statements

This presentation contains historical information and forward-looking statements within the meaning of The Private Securities

Litigation Reform Act of 1995 with respect to the business, financial condition and results of operations of Perion. The words will,believe, expect, intend, plan, should and similar expressions are intended to identify forward-looking statements. Such

statements reflect the current views, assumptions and expectations of Perion with respect to future events and are subject to risks

and uncertainties. Many factors could cause the actual results, performance or achievements of Perion to be materially differentfrom any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or

financial information, including, among others, the failure to realize the anticipated benefits of the ClientConnect transaction; risks

entailed in integrating the ClientConnect business with Perions other businesses, including employee retention and customeracceptance; the risk that the transaction will divert management and other resources from the ongoing operations of the two

businesses or otherwise disrupt the conduct of those businesses, potential litigation associated with the transaction, and general

risks associated with the business of Perion and with the ClientConnect business, including changes in the markets in which thebusinesses operate and in general economic and business conditions, loss of key customers, unpredictable sales cycles, competitive

pressures, market acceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business

strategy and various other factors, whether referenced or not referenced in this presentation. Various other risks and uncertaintiesmay affect Perion and its results of operations, as described in reports filed by the Company with the Securities and Exchange

Commission from time to time, including its annual report on Form 20-F for the year ended December 31, 2013 and the report on

Form 6-K filed with the SEC on September 23, 2014. Perion does not assume any obligation to update these forward-lookingstatements.

Confidential 3

Use of Non-GAAP measures

Non-GAAP financial measures, as well as adjusted EBITDA, consist of GAAP financial measures adjusted to include the resultsof discontinued operations, and to exclude acquisition related expenses, share-based compensation expenses, amortization ofacquired intangible assets and non-recurring tax expenses, as well as certain accounting entries that are required under thebusiness combination accounting rules. The purpose of such adjustments is to give an indication of our performance exclusiveof non-cash charges and other items that are considered by management to be outside of our core operating results. Thesenon-GAAP measures are among the primary factors management uses in planning for and forecasting future periods.Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate our business andmake operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of theongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolationor as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financialstatements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially fromthe non-GAAP financial measures used by other companies. A reconciliation between results on a GAAP and non-GAAP basis isprovided in the Appendix of this presentation.

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Perions Mission and Strategy

A leading search and display advertising monetization platform for desktop software developers

Mobile marketing and retargeting platform, for app developers, providing them the best ROI

Continued innovation and a strong acquisition pipeline for executing our vision and powering growth

Perion is a leading performance-based cross-device marketing technology company

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Perions Management Team

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Josef MandelbaumCEO20+ years experience, former CEO of American Greetings Interactive

Yacov KaufmanCFO20+ years experienceAcorn Energy, Tower Semiconductor

Shai GottesdienerGeneral Manager, Mobile15+ years management experience in Internet companies

Limor GershonyGeneral Counsel15+ years experience Veraz Networks, Medigate

Dana MaorSVP Human Resources15+ years experienceFrutarom, RadvisionStrong M&A background

Miki KolkoCTO20 years experience in Internet and Big Data techFormer founder and CTO of 3 startups

Amir NahmiasGeneral Manager Codefuel15+ years experience in the software and content industry

Yuval HamudotGeneral Manager Consumer Apps15+ years experience in R&D product development

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Business Model

Free(mium) software

companies partner with

Perion

Rev-share or Upfront payment

to software companies (PPI)

Perion's monetization

solution installed on

users PC

along with software

Perion generates

revenues from advertising and

searches performed by

the end user of software

Robust analytics system enabling real time access

to campaign data and optimization.

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Strong algorithm of LTV (Lifetime Value) prediction supports the business model

Perion has developed a proprietary predictive technology for accurately forecasting LTV and predicting ROI

Expertise in Big Data

Allows us rate flexibility and highly adaptive business model

Commercial competitive advantage through Bing long term contract (since 2011)

New 3+1 year contract from Jan 2015

Bing has increased its market share in the US from 12% to 20%

Perion represents approximately 8% of Bing searches and almost 2% of US market

Long-term partnerships with all the main search engines

Google, Yahoo, Bing, Ask.com

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Monetization Platform

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Pushing through the Headwinds

We are evolving in several ecosystems with multiple owners: the operating system (Windows), the browser(IE, Chrome, FF) and the search engine (Bing, Google, Yahoo, )

In recent years, competition has increased and search and platform providers have enacted new guidelines attempting to regulate the industry

New guidelines have adversely impacted our monetization business and ability to effectively compete

New policies coupled with reduced CAC causing declining revenues, expected to continue into first quarters of 2015

$-

$20

$40

$60

$80

$100

$120

$140

Q1'14 Q2'14 Q3'14 Q4'14

Mill

ion

Quarterly Revenue

Revenues Revenue Net of CAC

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Executing in a Challenging Environment

Conservative business approach:

Controlling customer acquisition spend by reducing partners rates, maximizing RoI and growing cash position for future investment

Transitioning business model, reducing risk away from PPI, increasing rev-share model

Improving cost structure, reducing costs to maintain high margins

Working hand in hand with industry policy makers

Focus on increasing market share in a smaller market

Accelerate development and marketing of mobile offering

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Transitioning into Mobile Performance Advertising

GrowMobile by Perion, a mobile media buying and retargeting platform for app developers

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Significant Market Potential

Worldwide mobile advertising spend expected to reach $159B in 2018 (emarketer, Dec 2014)

Q3.14: Americans now spend more time on mobile than on TV

App discovery challenge: over 3M apps in all app stores, difficult to stand out

Increasing audience and increasing need >> advertising dollars are shifting to mobile

Total US mobile advertising market:

$42B in 2018

Display, social & video:

$24B in 2018

Estimated potential net

revenue:~$2-3B in 2018

Source: Business Insider, October 2014

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Rise of Social Advertising

Worldwide social advertising spend expected to reach $26B in 2018

Social advertising growth driven by mobile, principally through Facebook and Twitter

U.S. social ad spend will reach $15B in 2018, and will include $7.6B in mobile spend (38% CAGR), surpassing desktop for the first time.

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A New Advertising Technology Stack

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Mobile fundamentally different from desktop

No cookies, but device identifiers and OS

Technology of PC adtech companies doesnt apply to mobile >> providing huge opportunity

High technology requirements:

Very fragmented technology, with mostly point products offering single solutions

Need for attribution, data, analytics

22 SDKs implemented on average per app

Too complex for smaller companies

DIY internal solutions at larger companies usually lead to poorer performance by the advertiser

A taste of the mobile adtech jungle (excerpt from Lumascape)

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Thousands of possible combinations in any ad campaign:

Numerous designs, size and format possibilities for each campaign

Countless traffic sources: