1. COPYRIGHT © 2012 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION ALCATEL LUCENT ISRAEL DIGITAL MULTIMEDIA SOLUTIONS March 2013

2. 2 ALCATEL-LUCENT AT A GLANCE DJSI leader in Technology 2,655 patents in 2011 29,133 active patents Collaborate with 250+ universities 2011 Adjusted operating margin 3.9% 72,000 employees 100+ nationalities TR50 Most Innovative Companies 2012 2012 revenues € 14.4 B 130+ countries 7 Nobel prizes 400G photonic DSL vectoring Carrier cloud lightRadio 400G IP XRS Core router 2011 R&D/Sales 15.7% Motive Customer Experience 1000+ CUSTOMERS (NETWORK OPERATOR) 1M+ NETWORKS

3. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — INTERNAL PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION 3 Leading technology provider to all communication companies (IP, Optical Transmission, xDSL (+Vectoring), FTTH, WiFi, Small Cells, Network Management & Optimization). LTE leadership serving the upcoming major mobile networks upgrades. Works closely with the Ministry of Defense for it’s communication infrastructure. ALCATEL-LUCENT ISRAEL LEADING THE COMMUNICATION MARKET, STRONG R&D PRESNECE Alcatel-Lucent Sprint Innovation Presence Alcatel-Lucent Israel customer

4. 4 THE CLOUDBAND BUSINESS UNIT WAS BOOTSTRAPPED IN ISRAEL IN MID 2011 THE TEAM IN ISRAEL, INCLUDES THE BU MANAGEMENT, R&D, PRODUCT MANAGEMENT, SALES AND OPERATIONS TEAM INCLUDES PEOPLE WITH BOTH TELECOM AND IT/CLOUD EXPERTISE, MANY ARE “RETURNING” ISRALIES THAT GAINED EXPERIENCE WORKING FOR OTHER MNCS ABROAD CLOUDBAND BUSINESS UNIT SETTING UP BUSINESS LEADERSHIP AND R&D IN ISRAEL DEMONSTRATE ALU’S STRONG BELIEF IN THE TECHNICAL AND BUSIENSS CAPABILITIES IN ISRAEL

5. COPYRIGHT © 2011 ALCATEL-LUCENT. ALL RIGHTS RESERVED. ALCATEL-LUCENT — CONFIDENTIAL — SOLELY FOR AUTHORIZED PERSONS HAVING A NEED TO KNOW — PROPRIETARY — USE PURSUANT TO COMPANY INSTRUCTION 5 CloudBand Description The Problem Network Service Providers are looking to transform their business to achieve: 1.Agility – Ability to introduce and grow their services rapidly 2.Operational Simplicity – Planning, deployment, life cycle management 3.Cost Efficiencies – Reduction of HW & SW costs, manual processes and increased asset utilization 4.New Revenue Streams– Cloud services CloudBand CloudNode Carrier PaaS Management System Our Solution Disruptive software-based platform that leverages cloud architectures and network services to enable our customers to: 1.Move relevant network functions to run on distributed scaled-out cloud platform 2.Provide end to end management, automation and E2E cloud infrastructure 3.Differentiate cloud service offerings leveraging the network for new revenues Target Markets 1.NFV(Virtual Telco): Virtualization of network functions for business agility and operational simplicity 2.Carrier Public Cloud: New revenue-generating cloud services targeted at enterprises and consumers

6. 6 DMS BUSINESS SNAPSHOT HEADQUARTERS:  HAIFA, ISRAEL BACKGROUND:  BASED ON ACQUISITION OF THE ISRAELI (HAIFA) STARTUP, MOBILITEC, IN 2006 EMPLOYEES:  120 ( 75 ISRAEL ) OVERVIEW:  THE TEAM IN ISRAEL, INCLUDES THE BU MANAGEMENT, R&D, PRODUCT MANAGEMENT, SALES AND OPERATIONS  THE ALCATEL-LUCENT DIGITAL MEDIA SOLUTIONS (DMS) IS A MULTI-TENANT CLOUD- BASED TECHNOLOGY PLATFORM DESIGNED TO DELIVER INNOVATIVE CONTENT SERVICES FOR CONSUMERS AND ENTERPRISES.  BECAME THE WORLDWIDE LEADER OF DIGITAL MEDIA SERVICES INCLUDING THE WORLD LARGEST TIER-1 TELCOS KEY CUSTOMERS: Mobile Nigeria

7. 7 EVOLUTION OF DIGITAL CONTENT MERCHANDIZING 20052000200720092010201120122013 Ringtone store WAP Content Store IPTV VOD Store Mobile App Stores eBook Store Multi-content stores E-Campus stores Enterprise Mobile Content Mobilitec FoundedAcquired by ALU

8. 8 THE COMPLETE DIGITAL MULTIMEDIA SOLUTIONS PLATFORM Enables user-specific, contextual, social, and interactive discovery, and a search experience tailored to device being used. DISCOVERY Optimizes delivery to any device with support for video transcoding/DRM, downloads and streaming and personal media lockers. DELIVERY Supports flexible payment mechanisms including rent, buy, loan, ad-sponsored, subscriptions, bundles, discounts and in-app billing PAYMENTS Ingests content, defines meta- data structures, manages catalogs, and leverages tools and APIs for service creation. CONTENT MANAGEMENT Leverages customer activity to improve user experience. SUBSCRIBER MANAGEMENT AND ANALYTICS Promotes content usage with tools for marketing, campaigns, branding, etc… MERCHANDISING AND MONETIZATION PLATFORM SOLUTIONS Enabling users to discover, purchase and consume any digital content. Multimedia Content Stores Augmenting TV shows, live events & advertisements with targeted content. advanceTV Enterprise private App and Content “Stores”. Working with BYOD. Enterprise Mobility Give students access to curriculum / course content on any connected device. eCampus + Future Solutions …