1. © 2013 Brightman Almagor Zohar & Co. M & A Trends December 2013

2. - 2 - © 2013 Brightman Almagor Zohar & Co. Reaching the Top?.

3. - 3 - © 2013 Brightman Almagor Zohar & Co. From Technology to Innovation

4. - 4 - © 2013 Brightman Almagor Zohar & Co. Few words about innovation… Entire industries are being disrupted by new technologies R&D vs. BREAKTHROUGHS A wave of Fortune 500 companies who come to seek innovation in Israel ……

5. - 5 - © 2013 Brightman Almagor Zohar & Co. Deloitte VC Survey Expectations as of Quarter 3, 2013 The VC Survey is a Deloitte initiative, which is conducted on a quarterly basis. © 2013 Brightman Almagor Zohar & Co.

6. - 6 - © 2013 Brightman Almagor Zohar & Co. Deloitte VC Survey Expectations as of Quarter 3, 2013

7. - 7 - © 2013 Brightman Almagor Zohar & Co. Deloitte VC Survey Expectations as of Quarter 3, 2013 Recently, there has been a dramatic increase in the number of Mobile Application companies. The survey reflects this trend, as most of the respondents (67%) believe there are too many companies in this sector. In contrast, only 7% of the Venture Capitalists believe there are too many companies in the Security sector, which, as abovementioned, is expected to be a flourishing sector in the upcoming year.

8. - 8 - © 2013 Brightman Almagor Zohar & Co. Deloitte VC Survey Expectations as of Quarter 3, 2013 It is apparent that most Venture Capitalists would like to see more energy storage companies in the market. In addition, in spite of the decrease in the number of hardware companies, there is a clear perception that there is no need for more hardware companies, as none of the respondents chose this category. Another interesting issue is that the respondents believe there are relatively not enough companies in the data infrastructure and fintech sectors..

9. - 9 - © 2013 Brightman Almagor Zohar & Co. Deloitte Fast 50 The Deloitte Brightman Almagor Zohar Technology Fast 50 Program annually recognizes and honors the 50 private and publicly held fastest growing technology companies in Israel, based on percentage revenue growth over a five-year.period

10. - 10 - © 2013 Brightman Almagor Zohar & Co. Deloitte Fast 50 2013 Company five-year average revenue growth by industry sector 2013 Company five-year average revenue growth by industry sector 2012 © 2013 Brightman Almagor Zohar & Co.

11. - 11 - © 2013 Brightman Almagor Zohar & Co. Technology M&A Multiples – Q2 2013 Source: Capital IQ EV/ EBITD A EV/ Revenu e Sector 13.2x3.4x Software 8.8x1.7xIT Services 16.9x4.2xInternet/ E- Commerce 6.8x0.9xHardware Average M&A Multiples for Companies in the Technology Sector: Average Multiples for Publicly Traded Companies:

12. - 12 - © 2013 Brightman Almagor Zohar & Co. Telecom M&A Multiples – Q2 2013 Source: Capital IQ EV/ EBITD A EV/ Revenu e Sector 5.4x1.6x Telecom Services 8.2x3.1xCable & Satellite 10.4x1.4xTelecom Equipment Average Multiples for Publicly Traded Companies: Average M&A Multiples for Companies in the Telecom Sector:

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