Confidential

Company PresentationSeptember 2016

Confidential

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 different from 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 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 transactions 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 the markets in which the businesses 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 uncertainties may 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, 2014 filed with the SEC on April 16, 2015. Perion does not assume any obligation to update these forward-looking statements..

SAFE HARBOR

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 of goodwill, amortization and impairment of acquired intangible assets and the related taxes thereon, as well as certain accounting entries under the business combination accounting rules that require us to recognize a legal performance obligation related 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 indication of 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 are regularly used internally to understand, manage and evaluate our business and make operating decisions, and we believe that they are useful to investors as a consistent and comparable measure of the ongoing performance of our business. However, our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.

NON-GAAP MEASURES

Confidential

2016 Expected EBITDA Margin

14%

Q2‘16 Revenue

$78M

Q2’16 EBITDA

$10.8M

1. Current market leader, with scale

2. Profitable for 10+ years

3. Poised to take advantage of multiple industry growth drivers

4. Strong partnerships with:

5. Seasoned and successful management team

Complete solutions for advertisers & publishers:

Outstanding Creative Formats

SuperiorExecution

Exclusive Inventory

Data-driven Technology

Enhanced Engagement

Programmatic Buying at Scale

Investment highlights

Confidential

Perion is a Global Leader in Two Major Categories

intent-based solutions for publishers

high-impact brand advertising

01 02

Confidential

Leader in intent-based solutions for publishers

01

Confidential

Confidential

Syndicating intent-based search& driving incremental revenue to publishers

Search providers

Monetize publishers’ products

Drive traffic to searchproviders & increase their

market share

Publishers

Confidential

Number 2 reseller of intent-based Search, with high profitability

Perion has reacted quickly to market dynamics achieving stability and marginal growth

• Strong management and focused strategy

• Solid long-term partnerships

• Complies with all market regulations

IAC69%

Perion17%

Blucora (infospace)

14%

Competitors market share (%), Q1 2016

Source: companies publications, Perion analysis

42.940.8

45.543.1

40.543.

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

Search monetization revenue ($M)

Confidential

The intent-based business is built upon strong assetsWhat makes CodeFuel a strong industry player?

Long term partnerships with Bing, Yahoo & Google provide scalable demand inventory, specific to intent key-words & category

Strong partnerships

Wide search data enablesperformance (RPM) optimization & user intent extraction

Intent know-how & big data

Innovative tech teams & infrastructure gives search know-how backed by vast experience in monetizing client assets

Proprietary technology

Confidential

Intent-basedCustomized native formats for superior UX

Balancing engagement & monetization

Focusing on end-user preferences, based on ongoing user feedback

A complete solution for content publishers

01 02 03

Confidential

In-Video

In-Feed

In-SearchIn-Image In-Tag

Customized native formats

Confidential

KW ranking based on machine-learning engineOptimize for best RPM based on predictive CTR

Balance monetization & engagement

Identifying user intent and balancing monetization & engagementUsing top proprietary technologies

Advertiser Publishers

BIG DATA from 10m searches a dayPage screening w/ smart tag algorithmAdded data signals

Identify user intent

Real time delivery of adsDashboard that tracks performanceNon-human traffic detection

Programmatic demand delivery

Confidential

Leader in high-impact brand advertising

02

Confidential

CAPTURING CONSUMER ATTENTIONIS DIFFICULT

Average AttentionSpan of 7 Seconds

See 7000 MarketingMessages a Day.

3.3 Devices on Average. Millennials Have 4

Source: Forrester Research, "The State of Consumers and Technology Benchmark 2014 US" as cited in company blog, Jan 16, 2015

Confidential

WE HELP BRANDS

Confidential

With high-impact ads that deliver results

153%Greater Ad Reca l l

50X CTR Versus Standard Disp lay

61% More L ike ly To Share V ia

Soc ia l Networks

46%Higher Overa l l

L ikeabi l i ty

DRIVES ACTION BRAND RECALL

EARNED MEDIALIKEABILITY

Sources: High Impact Advertising Across Screen: An Undertone & Ipsos Joint Research Project, 4/15; Nielsen “The New Digital Consumer” 2/14

Confidential

Driving Intent For A Luxury Auto Brand

Build awareness for new, more affordable luxury car model and to engage affluent men, taking over sales from luxury competitors.

Campaign Objective

Tactics

Creative: Page Grabber

Targeting: M35-64; HHI $220K, Investable

Assets $500K+, Luxury Car Owners or In-

Market for Luxury Car; Auto, Business, Tech,

Sports, Luxury Channel targeting.

+200%Lift In Purchase Intent

Among Men A35+ Exposed

To Page Grabber

+45%Lift In Aided Brand

Awareness among

M35-64

Results:

Source: Millward Brown

Confidential

17.5% Map Completion

Rate

285%

82.3%Interaction Rate

With The Product

Carousel

Greater Map

Completions Than

Benchmark

Higher Carousel

Interaction Rate than

CPG benchmark25x

Engaging Consumers With Store Locators of a Beauty Brand

Increase awareness of a cosmetics company promotional offer among beauty-conscious women & drive in-store traffic with store locator functionality.

Creative: Expandable Half Page Rich

media Mobile w/ in-unit store locator.

Targeting: W25-54, BT to frequent luxury

department store shoppers, Purchased-

based targeting (Offline Beauty buyers)

Tactics

Campaign Objectives

Source: Spongecell FY13 Benchmarks

Results:

Confidential

Tactics

Increase Consumer Loyalty and Drive Offline Sales for a Coffee Chain

Increase in-store sales during Holiday Season among potential brand “switchers” and establish the coffee chain as the holiday destination for consumer coffee needs.

Creative: Page Grabber, In-Stream

Video, Half Page 300x600

Targeting: Demo to A18-34, Behavioral

targeting to Family Oriented, Coffee

Shop Visitors (Holiday), Gifters, Indulgent

Seasonal Drink Buyers

Source: Nielsen NBI Study

+$5.91In Incremental Sales for

every $1.00 Spent on

Undertone media

98.0%of brand’s incremental sales

during Holiday driven by

Undertone ads

Campaign ObjectiveResults:

Confidential

Engaging cross-screen creative

Data-driven programmatic platform

Exclusivequality media

Engaging consumers requires more than a beautiful ad

A complete solution for brands

01 02 03

Confidential

Stunning cross-screen creative

Full screen, inherently viewable format that’s built with responsive design to allow for a seamless experience across devices

PAGE GRABBER

Custom built for highly engaging brand experiences

Confidential

FACEBOOK CANVAS• Mobile in-app• In feed to full screen experience • Fast loading High Impact• Flexible creative

Leveraging our social expertise with high impact canvas on Facebook

Confidential

Comprehensive solution in growing channels

Quality Pre-Roll Video

• Direct publisher video inventory

• Video ad before video content

• High viewability & completion

Full Screen Video

• Full screen viewable video

• Largest video real estate

• Vertical video functionality

In Line Video

• In line viewable video

• User scroll (TBD)

• Leave behind creative (TBD)

COMPREHENSIVE VIDEO SOLUTIONS

A R R I V I N G 2 H 2 0 1 6

MOBILE VIDEO TEASER TAPESTRY UMOTION

PROPRIETARY MOBILE FIRST

• Full screen storytelling format using playful

mashups of static images and animated GIFs

• User controls the pace of the brand story by

tapping to proceed

• Takeover format that leverages

native smartphone capabilities

for a unique, participatory ad

experience

• Prompted by the user with a

simple tilt, twist, shake or pan

motion

• Captures attention with a 7-10 second

auto play video teaser

• Can house vertical or horizontal video,

and includes branded skins and social

overlays

Confidential

Proprietary technology enables the best delivery of high-impact ads to the target consumers

HTML 5Creative libraryRich media delivery

Adcreation

Insights & Optimization that drive higher consumer engagement

Right context

Programmatic buying platformProgrammatic buying for all formatsIntegration with key DSPs

Right audience

Data platformUser profiles & targetingReporting & analytics

Publishers

Advertiser

Right ad

Confidential

192.3 Million Uniques in content publishers>$200M annual spend on social networks

Brand safe, quality network

Source: Comscore May 2016, Cross Screen Reach

192M uniquevisitors in content publishers

100% YoY growth in annual spend onsocial networks

Confidential

Our Quality Standards Are Reflected in Our Verified Human Traffic

% VERIFIED HUMAN TRAFFIC

85.9%Networks & Exchanges

96.3%Direct Publishers

98.4%Undertone

source: Ad fraud percentages, Integral Ad Science, Q2 2015

Confidential

We help top brands stand out

AUTO CPG PHARMACEUTICAL RETAIL TECH/TELECOMFIN SERVICES

Confidential

Unified value proposition

Confidential

Leader in high-quality & intent-based advertising solutions for brands and publishers

Creative

- High-impact- Social- Native

- Intent-based- UDMS

- Self-serve (MMR – FB, TW, IG) - Bing API- Private marketplace

ProgrammaticData

Consumer minded

Advertiser Publishers

Confidential

Financialinformation

Confidential

DIVERSIFIED REVENUES with strong growth trajectory

From 84% search revenue in Q2 2015 to a more balanced 53% in Q2 2016:

53%42%

5%

Search Advertising Product

84%

7%9%

Q2‘15

$40.8$45.5 $43.1

$40.5 $41.7

$7.8 $7.1

$24.5 $35.3 $36.3

Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16E

Advertising & other Search

$78-81

Q2’16

Confidential

Growing EBITDA trend

$13.8

$11.5$12.0

$8.8

$10.7

$12-13

EBITDA, ($M) Q2’15-Q3’16E

Confidential

2016 Expected EBITDA Margin

14%

Q2‘16 Revenue

$78M

Q2’16 EBITDA

$10.8M

1. Current market leader, with scale

2. Profitable for 10sraey +

3. Poised to take advantage of multiple industry growth drivers

4. Strong partnerships with :

5. Seasoned and successful management team

Complete solutions for advertisers & publishers:

Outstanding Creative Formats

SuperiorExecution

Exclusive Inventory

Data-driven Technology

Enhanced Engagement

Programmatic Buying at Scale

Investment highlights