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This This press release contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of1995 with respect to the business, financial condition and results of operations of Perion. The words “will”, “believe,” “expect,” “intend,” “plan,” “should” andsimilar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perionwith respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of Perion tobe materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, orfinancial information, including, among others, the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in thefuture, risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance; the risk that suchtransactions will divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses,potential litigation associated with such transactions, and general risks associated with the business of Perion including intense and frequent changes in themarkets in which the businesses operate and in general economic and business conditions, loss of key customers, unpredictable sales cycles, competitivepressures, 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 press release. Various other risks and uncertainties may affect Perion and its results of operations, as described inreports filed by Perion with the Securities and Exchange Commission from time to time, including its annual report on Form 20-F for the year ended December31, 2017 filed with the SEC on March 27, 2018. Perion does not assume any obligation to update these forward-looking statements.

FORWARD LOOKING STATEMENTS

Non-GAAP financial measures, including adjusted EBITDA, consist of GAAP financial measures adjusted to exclude acquisition related expenses, other non-recurring expenses, share-based compensation expenses, accretion and gain from the reversal of acquisition related contingent consideration, impairment ofgoodwill, fair value revaluation of convertible debt and related derivative, amortization and impairment of acquired intangible assets and the related taxesthereon, as well as certain accounting entries under the business combination accounting rules that require us to recognize a legal performance obligationrelated to revenue arrangements of an acquired entity based on its fair value at the date of acquisition. The purpose of such adjustments is to give an indicationof our performance exclusive of non-cash charges and other items that are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures areregularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as aconsistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be consideredin isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared inaccordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by othercompanies.

NON-GAAP MEASURES

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Confidential

Perion Facts

• Founded in 1999

• Publicly listed 2006 (NASDAQ), 2007 (TASE)

• Reversed merger with Conduit (2014)

• Acquired Undertone in 2015

• ~400 employees with main offices in Tel Aviv and New York

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Financial Highlights ($ M)

Q3-17 Q3-18 %

65.0 57.2 -12%

31.7 26.2 -17%

33.3 31.0 -7%

Revenue

Advertising

Search and Other

6.5 6.7 3%Adjusted EBITDA

274.0

134.5

139.5

2017

28.9

17.1 11.0 -36%Cash from Operations 36.0

Net Cash (Net Debt) (23.2)

Cash and Cash Equivalents 37.5

Debt 60.7

2018 Guidance Adjusted EBITDA 29-32 ($ M)

YTD-17 YTD-18 %

196.7 180.9 -8%

91.4 88.7 -3%

105.3 92.2 -12%

17.0 18.1 6%

28.8 28.5 -1%

(26.8) 1.2 -104%

35.5 40.9 15%

62.3 39.7 -36%

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Turnaround - Key Priorities & Activities

Growth Factor:

Advertising

“Brand-conscious brands”

Differentiated Technology

• Campaign Intelligence

• Synchronized Digital Branding platform

• Optimized cost structure (G&A, S&M)

• Focused on profitability2018 EBITDA guidance

Cost Optimization

2017 / 2018 2017 / 2018 2019 / 2020

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Overall decrease of $27M

Net Debt

Cash and Cash Equivalents

Debt

31.4 35.5 40.9

86.9 62.3 39.7

55.5 26.8 -1.2

Net Debt and Cost Optimization ($ M)

YTD-16 YTD-17 YTD-18

*Non-GAAP

2016 2017YTD-18

Run-rate

G&A + S&M + R&D* 102 90 75

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Who We Are?

We deliver data-driven online

advertising and search solutions

to brands and publishers

Awareness

Consideration

Intent

Buy

Measurement by Clicks

Measurement by Impressions

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Perion Advertising

Confidential

Perion Addressable Market Accelerated Growth

US Digital Ad Spending, by Format (USD, B)

5

6

28

51

24

41

48

84

2018

2022

Rich Media Video Standard Display Search Other

Global Digital Ad Spend 2018:

$273B

Global Digital Ad Spend 2022:

$427B

Source: eMarketer, October 2017

111

188

CAGR 4% 16% 14% 15% 14%

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Perion Mastering Reserved Programmatic

33 39

46

78%

82%

84%

-

10

20

30

40

50

2017 2018 2019

74%

76%

78%

80%

82%

84%

86%

US Programmatic Digital Ad Spending (USD, B),% Of Total Digital Display Ad Spending

Source: eMarketer, September 2017

56% is Programmatic Reserved

Question 1:Is inventory being

auctioned?

Programmatic Direct

Real-time Bidding (RTB)

Question 3:Is inventory guaranteed?

Question 2:Is it a public

auction?

Programmatic Guaranteed

Preferred Deal

Open Exchange

Private Marketplace

Source: eMarketer

YES NO

YES NO YES NO

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• Fraud and unviewable impressions -

$7.4B loss in 2016

• Quality concern

• Siloed channel buying

• Disconnected technology

• Poor creative execution

Brand Challenges

Source: Forrester Data: Online Display Advertising Forecast, 2016 To 2021 (US), Q3 2016 Updates;Forrester Data: Social Media Advertising Forecast, 2017 To 2022; and Forrester Data: AD Fraud And Viewability Forecast, 2016 To 2021 (US)

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Avoiding the 'Crap Trap’ in Advertising

“We emphasized the importance of consistency in brand building.

Focusing less on volume of advertising [and] more on quality [to] make sure

it’s consistently seen as your brand across the wide variety of mediums to

get people to turn toward it.”

(Procter & Gamble's Chief Brand Officer, Marc Pritchard, Forbes, October 2016)

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Undertone Offering Perfectly Meets Market Trends

Market Trends• Higher scale & pace of targeted audiences• Innovative creative formats

• Brand safety across quality sites• Contextual relevancy

• ROI of media spent• Optimization based on clients’ KPIs

• Fewer but better partners• Cross platforms & screens

• High-impact ads in all platforms• Platforms are synced to generate optimization

Our OfferingProprietary Ad builder system

Dynamic tagsWhite-listed pubs

Campaign to campaign Machine Learning (ML)

Holistic end-to-end solution

Across all touchpoints

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Deliver Synchronized Digital Branding Across All Channels so That It Is Connected,

Relevant and Consistent with the Customer Stage in His or Her Life Cycle

Undertone Narrative

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We are focusing on “brand-conscious brands” that

are not interested in dilutive, low-value programmatic advertising which

neither builds reputations nor creates one-to-one intimacy.

“Access to quality inventory outside of the open exchange. Marketers and agencies continue to

call into question the value of digital and, more specifically, the quality of inventory available on

the open exchanges (programmatic unreserved). ”

(Richard Joyce and Samantha Merlivat, Forrester, May 2017)

Our Mission

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Serving the World’s Best Brands Across All Verticals

TelecomCarConsumer Products

PharmaceuticalFinance Retail

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Organic & Paid Social

Study Case - Synchronized Digital Branding

Retargeting & Sequential ContentHigh Impact & Video

Confidential

Intent: Enhanced StandardAwareness: Page Grabber Consideration: Brand Reveal

DEMO DEMO DEMO

Using High-Impact Ad Units

Confidential

Awareness

Consideration

Intent

Buy

To Drive Users Down the Funnel

Funnel Activity (Impressions) Cost per Activity

8,504,276 Awareness Activities $0.10 Cost per Awareness

986,661 Consideration Activities $0.80 Cost per Consideration

12,395 Intent Activities $63.44 Cost per Intent

Confidential

Engaging Video Storytelling Drives Purchase Intent for Puffs

10%Lift in Purchase Intent

CTR 36X Industry Rich Media Benchmark

Sexy, But Simple Car Imagery Sells 11,000 + Cars for BMW

11,310 Vehicles Purchased

21 seconds Interaction Time

Source: Sizmek

Delivering Strong Business Outcomes …

Fun, Unexpected Creative Drives Site Visits for Garmin

635% Lift in Unique Site Visitors

389% Lift in Number of Site Visits

173%Lift in Store Visits

178% Lift in Site Visits

Appealing Image Gallery Drives Consumers to Raymour & Flanigan

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Engagement

…Through High Performing Metrics and Efficiency

1.19%

24.81%$0.60

$0.08 0.27%

1.93%

CTR Attention*(Cost Per Second)

*CPAT: Cost per Second of Attention. Undertone: Cost/Interaction Time (Seconds). TV based on average cost, viewership and attention assumptions. Sources: Undertone 2018 benchmarks, Sizmek 2017 benchmarks, Ad Age

Industry Undertone Industry Undertone Industry Undertone

Sizmek RM/Undertone HI

Sizmek RM/Undertone HI

30sec National TV/Undertone HI

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Undertone Growth Strategy

Short-term Long-term

Artificial Intelligence to better optimize campaign performance,

by delivering to a targeted audience a coherent brand message across all

media platforms & screens

Innovative technology that enables advertisers to manage their brand

awareness campaigns with a holistic, scalable & profitable solution

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OFFICIAL PARTNER SINCE

2010 2014 2015 2017

Make Me Reach

• Self or full-service SaaS platform to manage all

Social accounts

• Easy management of thousands of campaigns

for multiple accounts

• Automatic optimization based on pre-set

objectives

• Customized reporting tools and formats

• Increase campaign performance by an average

of 30% compared to native social tools

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2018

Perion Search

Confidential

CodeFuel Monetization – User Flow

Extension installation through the browser

1

Changing homepage & default search engine

to Bing

2

A) A search leads the user to Bing search results pageOR

B) Customized search results page –CodeFuel proprietary

3 BA

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Leading Search Syndication Player

An extended agreement through 2020, is bolstering the relationship with Bing and expanding Perion’s reach within the Search ecosystem

Attractive stable monetization for

publishers

Fully compliant with market regulations

Generating strong

cash flowCoverage in top

performing leading countries

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ConfidentialSource: Mary Meeker “Internet Trends 2017”

Search - Internet Usage

While Mobile usage is on the rise,

Desktop usage has remained consistent

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The Search Market

34%Bing Ads Search Share

in US (PC)

136MBing Unique Searches

5.4BBing Monthly Searches

Source: eMarketer, September 2017Source: Microsoft, August 2017

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Search Future Plans

Expand product offerings through Bing

Diversify the

publishers pool

Develop internal

offerings (O&O, D2S)

Long-term relationship with Bing that drives expansion into joint adjacent products

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Smilebox

Mission

Transform the way people share

life’s moments, by empowering them to

connect in fresh and creative ways.

• B2C and B2B

• Desktop and Mobile

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An Attractive Investment Opportunity in a Fast-Growing Market

Confidential

Summary

A new management committed to improving revenue and profit through innovative technology and lower cost structure

Strong cash flow and coverage ratios (Solid Net Debt to EBITDA ratio), enable continuous investment in Undertone

Long-term collaboration with Bing and other Advertising industry leaders

Our advanced technology combines Ad creative platform and AI capabilities, that deliver on-moment and on-target messages across the entire consumer journey

Undertone’s Synchronized Digital Branding platform provides the perfect solution to the siloed Ads that brand-conscious brands are facing

Every day more brands are waking up and realizing that Undertone is the perfect solution to the “perfect storm” 33

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Appendix

Confidential

Income Statement ($ M)

P&L 2017 YTD-17 YTD-18 Q3-17 Q3-18

Search 139.5 105.3 92.2 33.3 31.0

Advertising and other 134.5 91.4 88.7 31.7 26.2

Total Revenues 274.0 196.7 180.9 65.0 57.2

Cost of revenues (24.7) (17.0) (17.3) (5.7) (5.5)

Customer acquisition costs (130.9) (95.8) (91.8) (32.0) (28.8)

Research and development (17.2) (13.6) (14.6) (4.1) (4.3)

Selling and marketing (52.7) (38.4) (28.3) (11.8) (8.6)

General and administrative (21.9) (16.6) (13.1) (5.4) (3.9)

Depreciation and amortization (16.6) (13.3) (7.1) (3.5) (2.6)

Restructuring charges 0.0 0.0 (2.1) 0.0 0.0

Impairment, net change in fair value of contingent consideration (85.7) (43.8) 0.0 0.0 0.0

EBIT (75.7) (41.8) 6.6 2.5 3.5

% Revenue -27.6% -21.3% 3.6% 3.8% 6.1%

Financial expense, net (5.9) (4.2) (3.1) (0.6) (1.2)

Taxes on income 8.8 10.5 (0.3) 0.7 (0.1)

Net Income (Loss) (72.8) (35.5) 3.2 2.6 2.2

% Revenue -26.6% -18.0% 1.8% 4.0% 3.8%

Net Income Non GAAP 17.4 11.1 12.0 4.1 4.3

% Revenue 6.4% 5.6% 6.6% 6.3% 7.5%

Adjusted EBITDA 28.9 17.0 18.1 6.5 6.7

% Revenue 10.6% 8.6% 10.0% 10.0% 11.7%

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Non-GAAP adjustments ($ M)

Reconciliation of GAAP to NON-GAAP Results 2017 YTD-17 YTD-18 Q3-17 Q3-18

CAAP Net Income (loss) from continuing operations (72.8) (35.5) 3.2 2.6 2.2

Share based compensation 2.1 1.7 2.1 0.5 0.6

Amortization of acquired intangible assets 13.0 10.7 3.6 2.6 1.3

Restructuring costs 0.0 0.0 2.1 0.0 0.0

Non-recurring Legal fees 0.2 0.0 0.2 0.0 0.0

Impairment of goodwill and intangible assets 85.7 43.8 0.0 0.0 0.0

Fair value revaluation of convertible debt and related derivative 1.1 0.6 1.1 (0.8) 0.2

Accretion of payment obligation related to acquisition 0.0 0.0 0.0 0.0 0.0

Taxes on the above items (11.9) (10.2) (0.3) (0.8) 0.0

Non-GAAP Net Income from continuing operations 17.4 11.1 12.0 4.1 4.3

Taxes on income 3.2 (0.3) 0.6 0.1 0.1

Financial expense, net 4.7 3.6 2.0 1.4 1.0

Depreciation 3.6 2.6 3.5 0.9 1.3

Adjusted EBITDA 28.9 17.0 18.1 6.5 6.7

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Balance Sheet Overview as of 30.09.2018 ($ M)

Current Assets Current Liabilities

Cash and cash equivalents & Short term bank deposit 40.9 Current maturities of long-term loans 13.5

Accounts receivable, net 43.2 Accounts payable 36.2

Prepaid expenses and other current assets 8.6 Accrued expenses and other liabilities 13.8

92.7 Deferred revenues 3.9

Payment obligation related to acquisitions 3.4

70.8

Non Current Assets Long-Term Liabilities

Property and equipment, net 16.2 Long-term Debt 26.2

Intangible assets, net 7.6 Other long-term liabilities 6.4

Goodwill 125.1 32.6

Deferred taxes & Other assets 5.2

154.1 Shareholders' Equity

143.4

Total Assets 246.8 Total Liabilities and Shareholders' Equity 246.8

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Financial Debt and Free Cash Flow Evolution ($ M)

2016 2017 2018 Q1 2018 Q2 2018 Q3

Cash Flow from Operating activities 30.5 36.0 14.6 2.9 11.0

Investment in Equipment and Capitalization cost (5.9) (7.4) (0.8) (0.4) (1.6)

Free Cash Flow 24.5 28.7 13.8 2.5 9.4

Q3’2018 –First Quarter Achieving Positive Net Cash Position for the First Time in Four Years

37

3944 42

56

4542 42

2723

8 6

-1

9992

86 87

78

65 64 62 61

50

41 40

-10

10

30

50

70

90

110

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3

Net Debt Gross Debt

Thank You

investors@perion.com