GLOBAL AD TECH COMPANYFOR BRANDS & PUBLISHERS

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This presentation contains historical information and forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995with respect to the business, financial condition and results of operations of Perion. The words “will”, “believe,” “expect,” “intend,” “plan,” “should” and similarexpressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptions and expectations of Perion withrespect to future events and are subject to risks and uncertainties. Many factors could cause the actual results, performance or achievements of Perion to bematerially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, or financialinformation, including, among others, the failure to realize the anticipated benefits of companies and businesses we acquired and may acquire in the future,risks entailed in integrating the companies and businesses we acquire, including employee retention and customer acceptance; the risk that such transactionswill divert management and other resources from the ongoing operations of the business or otherwise disrupt the conduct of those businesses, potentiallitigation associated with such transactions, and general risks associated with the business of Perion including intense and frequent changes in the markets inwhich the businesses operate and in general economic and business conditions, loss of key customers, unpredictable sales cycles, competitive pressures, marketacceptance of new products, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, whetherreferenced or not referenced in this presentation . Various other risks and uncertainties may affect Perion and its results of operations, as described in reportsfiled 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 December31, 2016 filed with the SEC on March 7, 2017. 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, amortization and impairment of acquired intangible assets and the related taxes thereon, as well as certain accounting entries under the businesscombination accounting rules that require us to recognize a legal performance obligation related to revenue arrangements of an acquired entity based on itsfair value at the date of acquisition. The purpose of such adjustments is to give an indication of our performance exclusive of non-cash charges and other itemsthat are considered by management to be outside of our core operating results. These non-GAAP measures are among the primary factors management usesin planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage and evaluate ourbusiness and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performanceof our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, andshould be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financialmeasures may differ materially from the non-GAAP financial measures used by other companies.

NON-GAAP MEASURES

Proprietary| NASDAQ: PERI

Perion Facts

• Founded in 1999

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

• Reversed merger with Conduit (2014)

• Acquired Undertone in 2015

• ~500 employees with main offices in Tel Aviv and New York

Proprietary| NASDAQ: PERI

Investment Highlights

$274.0M

EBITDA

$28.9M

Complete Solutions For Advertisers & Publishers

Cash Flow

$36.0M

Revenue

150+ Fortune 500 companies

Extended agreementthrough 2020

• Profitable for 10+ years

• Market leader in digital advertising and search distribution

• Strong partnerships with

2017

Q4/17 $77.3M $11.9M $7.2M

Guidance 2018 $28-32M

Proprietary| NASDAQ: PERI

“Perion reported Q417 results above expectations”

2017

Actual Needham

Revenue ($M) $274 $272

Adj EBITDA ($M) $29 $26% of Revenue 11% 9%

Non GAAP EPS $0.24 $0.25

Actual vs Estimates:Revenue ($M) 101%Adj EBITDA ($M) 113%Non GAAP EPS 96%

Source: https://needham.bluematrix.com

Proprietary| NASDAQ: PERI

Search & Social Advertising

Brand Advertising

Awareness

Consideration

Intent

Purchase

High Impact | Data-driven | CreativeProgrammatic | Video | Retargeting

Leading in Search distribution| Innovative Technology | Leading

Social Partners

We deliver data-driven online advertising and search solutions to brands and publishers

Who we are?

Proprietary| NASDAQ: PERI

Key Priorities & Activities

Powering growth by focusing all the efforts

on the following key priorities

• Optimized cost structure

• Focused on profitability

• Media Buying

Organic Growth:

Sales First Approach

• Search

• Advertising

Differentiated Technology

• Campaign Intelligence

• Engineering

• Partnerships

Operational Efficiency

Perion Advertising

Confidential

Perion Addressable Market Accelerated Growth

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

10

18

13

22

18

27

37

56

2017

2021

Rich Media Video Standard Display Search Other

Global Digital Ad Spend 2017:

$229B

Global Digital Ad Spend 2021:

$376B

Source: eMarketer, October 2017

83

129

CAGR 15% 14% 11% 11% 12%

Confidential

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

56%

Reserved high quality Inventory

Unreserved

2017 Programmatic Split

Source: eMarketer, September 2017

2

3

4

5

1 Proprietary

High-Impact Formats

High Viewability

High Tier publishers

Multi devices & platforms

Quality Traffic

Why Undertone ?

Consumers

Proprietary Technology

Multiple formats, channels and devices

Brands

Award Winning Creative

NASDAQ: PERI

Proprietary| NASDAQ: PERI

PHARMACEUTICAL TECH/TELECOMFIN SERVICES RETAILCPGAUTO

Serving The World’s Best Brands Across All Verticals

Proprietary| NASDAQ: PERI

P&G's Marc Pritchard On 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)

Source: https://www.forbes.com/sites/avidan/2016/10/23/pgs-marc-pritchard-on-avoiding-the-crap-trap-in-advertising/#7a86e8c776f7

Proprietary| NASDAQ: PERI

Undertone Offering Perfectly Meets Market Trends

Our Offering Market Trends

Proprietary Ad

builder system

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

Dynamic tags

White-listed pubs

• Brand safety across quality sites• Contextual relevancy

ML based campaign m

anagement system

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

Holistic end-to-end

solution

• Fewer but better partners• Cross platforms & screens

Across all

touchpoints

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

Proprietary| NASDAQ: PERI

We approach Creative as both the Art & Science that connects

brands to consumers.

We design with the user experience in mind:

• Innovation lab consumer tests

• In-house full-service creative studio with deep brand and design expertise

• Data driven best practices

Creating High Quality Ads

Proprietary| NASDAQ: PERI

Screen Shift ExpandableAdhesion

Page Grabber See Through

A Glimpse Into Our Advertising Solutions

NASDAQ: PERI

Engaging Video Storytelling Drives Purchase Intent for Puffs

10%Lift in Purchase Intent

CTR 36X Industry Rich Media Benchmark1

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

11,310 Vehicles Purchased

21 seconds Interaction Time

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

Sources: Sizmek1

Delivering Strong Business Outcomes …

Proprietary| NASDAQ: PERI

60%

30%

0%

90%

45%

0%

3%

1.5%

0%

50%

25%

0%

38%

58% 85%

30%

*MOAT benchmark; *the ratio of those that converted from hovering to interacting

Sources: IPSOS; Sizmek 2015 Databook; Undertone 2016 Benchmarks

2.97%

0.22%

34%

0.98%

IPSOS Recall/Standard vs. Undertone HI

MOAT/Standard vs Undertone HI

Sizmek/RM vs Undertone HI

Sizmek/RM vs Undertone HI

EngagementAwareness Attention* CTR

Industry Undertone Industry Undertone Industry Undertone Industry Undertone

… Through High Performing Campaigns

Proprietary| NASDAQ: PERISource: Undertone Data, Google Insights, IAS, MOAT; UDMS 2016 Benchmarks;Based on Undertone Page Grabber and Standard 300 x 250

86%Lower Cost Per Click

50% Lower Cost Per Engagement

$1.00

$7.14

$10

$5

0

$.20

$.10

0

$0.10

$0.20

Industry Undertone Industry Undertone

… With Attractive Return On Investment

NASDAQ: PERI

Undertone Growth Strategy

Short-term Long-term

Artificial Intelligence to better optimize campaigns performance, by delivering to targeted audience, coherent brand message across all

media platforms & screens

Innovative technology, enabling advertisers to manage their brand awareness campaigns with holistic,

scalable & profitable solution

Perion Search

Confidential

Leading Search Syndication Player

An extended agreement through 2020, 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

Proprietary| NASDAQ: PERI

While Mobile Usage Is On The Rise, Desktop Usage Has Remained Consistent

Source: Mary Meeker “Internet Trends 2017”

Confidential

Search Market

34%Bing Ads Search Share

in US (PC)

136MBing Unique Searches

5.4BBing Monthly Searches

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

Confidential

Search Future Plans

Expand product offerings through Bing

Diversify the

publishers pool

Develop internal

offerings (O&O, D2S)

Long term renewal with Bing in progress featuring expansion into adjacent products

ConfidentialProprietary| NASDAQ: PERI

Leader In Premium High Impact Advertising

Leader In Search Distribution

Long Standing Partnerships With Key

Industry Players

Data Driven Innovative Technology

Massive & Fast Growing Addressable Market

Attractive Financials

An Attractive Investment Opportunity In A Fast Growing Market

Thank You