December 7, 2011
Smilebox 2011 Holiday DesignsNew Features Make This Holiday Stress-free  New Doorstep Direct home delivery printing provides more options for creativeconvenient holiday photo sharing for cards, invites, giftsprofessionally bound books

, a Perion Network Ltd. (NASDAQ: PERI) brand,a leader in creative photo sharing, unveiled today its 2011 holiday collection for its desktop service as well as the Smilebox for iPhone app. To make sharing easiermore convenient for busy families, Smilebox has also added a Doorstep Direct home delivery print option for cards, invites, printsprofessionally bound books in addition to its homestore printing options. 

More than 50 new holiday designs will debut this holiday season in its catalog of more than 1,000 designs that includes invitations, greetings, photo cards, slideshows, scrapbooks, photo albums, recipe bookscalendars.  Each design combines musicmotion to share photosvideos in a uniquememorable way.  Smilebox allows its customers to choose how they would like to share their memories this holiday - email, post to Facebook or blog, burn to DVD, save to video, disc or photo frame, or print to home, store or home delivery. 

Home Delivery with Doorstep Direct
A new feature by Smilebox, Doorstep Direct, lets U.S. Club Smilebox customers print their creationshave them delivered to their doorstep in one to ten business days.  Its unique Build-a-Book feature gives customers the ability to mixmatch their scrapbooksphoto albumsthen order professionally bound soft-hard-cover books.  Free standard shipping is available everyday on all Doorstep Direct orders. 

For more information on Smilebox for desktop, visit to download your program for free today.  A premium service, Club Smilebox, is available for $5.99/month or $39.99/year.  Club Smilebox benefits include an ad-free playback, unlimited storage for shared creationsadditional features including premium contentbonus offerings. 

Holiday Moments On-the-Go
This holiday season, the Smilebox for iPhone app will feature festive new designs to share mobile moments on the go.  Dynamic holiday designs for personalizing photos with colorful stickers, swipes, captionsframes will be featured throughout the month of December, all with the ability of flexible sharinginstant feedback from familyfriends.  This year's holiday collection includes an "I Saw Santa" sticker, allowing customers to share photos taken with St. Nick in a variety of posesenvironments, which will be available December 12. 

Smilebox for iPhone is available for the iPhone, iPad2,iPod touchcan be downloaded from the iTunes store.  For more information, please visit . 

About Smilebox
The Smilebox division of Perion provides mobiledesktop social photo sharing services that let consumers stay personally connected with familyfriends around life's moments.  Smilebox is the only service that support all personal media (photos, videos, music), all content types (greetings, invitations, slideshows, digital scrapbooks, photobookscollages)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 servicemore than 180 million Smilebox creations have been played (and seen) worldwide.

About Perion Network Ltd.
Founded in 2000, Perion (NASDAQ:PERI - News) is a digital media company that provides productsservices to consumers to help make their everyday life simplermore 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 Premium, an award winning e-mail product sold in over 100 countries in 10 different languages; Smilebox, a leading photo sharingsocial expression productservice that lets customers quickly turn life's moments into digital creations to shareconnect with friendsfamily in a funpersonal way; PhotoJoy, a photo discoverysharing screensaver & wallpaper product;Fixie, a PC optimization product. For more information on Perion (NASDAQ:PERI - News), visit .

Forward Looking Statements
This press release contains historical informationforward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 with respect to the business, financial conditionresults of operations of the Company. The words "believe," "expect," "intend," "plan," "should"similar expressions are intended to identify forward-looking statements. Such statements reflect the current views, assumptionsexpectations of the Company with respect to future eventsare subject to risksuncertainties. 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 plansoperationsthe potential difficulties in employee retention as a result of the proposed transactionin integrating the acquired business, the distraction of managementthe Company resulting from the proposed transaction, changes in the markets in which the Company operatesin general economicbusiness conditions, loss of key customersunpredictable sales cycles, competitive pressures, market acceptance of new products, inability to meet efficiencycost reduction objectives, changes in business strategyvarious other factors, whether referenced or not referenced in this press release. Various other risksuncertainties may affect the Companyits results of operations, as described in reports filed by the Company with the SecuritiesExchange 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.

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