Smilebox Debuts 2012 Collection of Springtime Celebration Designs

Smilebox, a Perion Network Ltd. (NASDAQ:PERI) brand, announced today its 2012 collection of spring designs for Easter, Passover, and graduation. More than 30 new spring designs are now available in the Smilebox desktop catalog of more than 1,000 designs in formats such as greetings, invitations, scrapbooks, slideshows, and announcements as well as the Smilebox for iPhone app.

Each Smilebox design combines music and motion to share photos and videos in a unique and memorable way. Its customers can choose how they would like to share their memories – by email, post to Facebook or blog, save to video, disc or photo frame, or print at home, store or home delivery. This spring marks the first time customers can order Easter, Passover and graduation products through Smilebox Doorstep Direct and have them delivered to their home.

“Springtime brings many holidays and occasions for our customers to share special moments through personal photos and videos,” said Norin Crawford, Smilebox Vice President of Marketing. “Our creative team has delivered a stylish and unique collection of customizable designs that will both delight and inspire.”

About Home Delivery with Doorstep Direct

Smilebox Doorstep Direct lets U.S. Club Smilebox customers print their creations and have them delivered to their doorstep in one to ten business days. Its unique Build-a-Book feature gives customers the ability to mix and match their scrapbooks and photo albums and then order professionally bound soft- and hard-cover books. Free standard shipping is available everyday on all Doorstep Direct orders.

About Smilebox

Smilebox is a Perion product which provides mobile and desktop social photo sharing services that let consumers stay personally connected with family and friends around life’s moments. Smilebox is the only service that support all personal media (photos, videos, music), all content types (greetings, invitations, slideshows, scrapbooks, photo albums and collages) and all sharing methods (email, print, burn to DVD, post to Facebook, blog, Twitter or SMS). Since the service’s launch in June 2006, more than 15 million people have installed the desktop Smilebox service and more than 180 million Smilebox creations have been played (and seen) worldwide.

Smilebox for the PC 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.

Founded in 2000, Perion (NASDAQ:PERI) is a digital media company that provides products and services to consumers to help make their everyday life simpler and more enjoyable. Focusing on an underserved market of second wave adopters who value their time online, Perion offers a growing portfolio of easy-to-use products. The Company's products include: IncrediMail, an award winning e-mail product distributed in over 100 countries in 10 different languages; Smilebox, a leading photo sharing and social expression product and service that lets customers quickly turn life's moments into digital creations to share and connect with friends and family in a fun and personal way; PhotoJoy, a photo discovery and sharing screensaver & wallpaper product; and Fixie, a PC optimization product. For more information on Perion, 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. 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, including, among others, potential litigation associated with the transaction, risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed transaction and in integrating the acquired business, the distraction of management and the Company resulting from the proposed transaction, 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, 2010. The Company does not assume any obligation to update these forward-looking statements.

Source: Perion Network Ltd.

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