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Perion Announces Additional Search Provider Deal

Perion Network Ltd. (NASDAQ: PERI) announced today it has entered into, and launched, a new search and distribution relationship with Bing, the search engine from Microsoft Corp.

Perion’s easy to use and safe search services are now also powered by Bing. Under this agreement, Perion is now able to offer its customers more choice when it comes to search providers and introduce Bing to its unique audience.

Commenting on the agreement, Josef Mandelbaum, Perion’s CEO, said, “We are very excited to add Bing as a search partner. Bing offers a great search solution and we are confident our users will appreciate how effective it is at helping them find what they want in an easy to use fashion. On a personal note, I first teamed up with Microsoft over 18 years ago, having worked with them throughout my entire career. I am delighted to have the opportunity to collaborate with them again at Perion.”

“We are very happy to begin this new relationship with Perion,” said Chris Nelson, senior director of strategic partnerships for Microsoft’s Online Services Division. “We’re committed to providing a rich search experience to Perion users and see this relationship as a strategic way for us to enrich and broaden our search footprint moving forward.”

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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