SYS-CON MEDIA Authors: Greg Ness, Sean Houghton, Glenn Rossman, Ignacio M. Llorente, Xenia von Wedel

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Smilebox Debuts Free, Animated Photo Valentines for iPhone

Smilebox, a Perion Network Ltd. (NASDAQ:PERI) brand, today announced it has released first-of-their-kind, animated valentine designs for its Smilebox for iPhone service. While all of the app’s designs give customers the ability to embellish single photos or create collages, these industry-leading, animated designs bring an unexpected spark of delight to both the creator and recipient. Just in time for Valentine’s Day, users will be able to share truly one-of-a-kind mobile valentines with charming animation such as flying cupids, throbbing hearts, and floating sentiments.

The Smilebox iPhone app allows users to send moments on the go and gives consumers an environmentally friendly, green option for sharing Valentine’s Day wishes. The animated designs can be shared directly from the app through email and SMS and all creations in the service can be shared via Instagram, Facebook, and Twitter.

"Our Smilebox for iPhone Valentine designs take mobile photos to a new level with an animated experience that provides a rich dimension to standard photo sharing,” said Yuval Hamudot, Smilebox president. “Over the last 4 months, we’ve seen more than 80 percent growth in both new and active users. We expect this new innovation to continue to drive the growth in user adoption of our service.”

The release of Smilebox mobile designs complements an even wider collection of 2013 valentine designs available on the desktop service for Mac and PC users. The collection provides a broad selection of Valentine’s Day greetings, collages, slideshows, scrapbooks, and invitations.

About Smilebox

Smilebox provides mobile and desktop social photo sharing services that let consumers stay personally connected with family and friends around life's moments. Smilebox for the PC and Mac can be downloaded from www.smilebox.com and the Smilebox iPhone App can be downloaded from the iTunes store. For more information, please visit www.smilebox.com and join us on Facebook and Twitter.

About Perion Network Ltd.

Perion Network, Ltd. (NASDAQ: PERI) is a global consumer internet company that develops applications to make the online experience of its users simple, safe and enjoyable. Perion’s three main consumer brands are: IncrediMail, Smilebox and SweetIM. IncrediMail is a unified messaging application enabling consumers to manage multiple email accounts and Facebook messages in one place with an easy-to-use interface and extensive personalization features, and is available in over 100 countries in 8 languages; Smilebox is a leading photo sharing and social expression product and service that quickly turns life's moments into digital keepsakes for sharing and connecting with friends and family, in a fun and personal way. SweetIM is an instant messaging and Facebook application that enables consumers to personalize their everyday communications with free, fun and easy to use content. Perion products have had over 300 million downloads to date with more than 50 million monthly unique visitors across all of its brands. Most of Perion’s applications are monetized through a freemium model. Free versions of our applications are monetized primarily through our toolbar which generates search revenue and display advertising revenue, generated through impressions. A more advanced feature rich version of many of our products is available with a premium upgrade. Perion also offers and develops a range of products for mobile phones and tablets to answer its users' increasing mobile demands. For more information on Perion please visit www.perion.com.

Forward Looking Statements

This press release 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 the Company. The words “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 the Company with respect to future events and are subject to risks and uncertainties. In addition, the financial information set forth in this press release is not an indication of the future financial results of the Company following the consummation of the acquisition. Many factors could cause the actual results, performance or achievements of the Company 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, potential litigation associated with the transaction, risks that the Company's acquisition activities may disrupt current plans and operations and pose difficulties in employee retention, risks entailed in integrating acquired businesses, changes in the markets in which the Company operates and in general economic and business conditions, loss of key customers and 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 press release. Various other risks and uncertainties may affect the Company 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, 2011. The Company does not assume any obligation to update these forward-looking statements.

Source: Perion Network Ltd.

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