Telecom Division

1. Telecom Division Portfolio This presentation constitutes proprietary and confidential information of Mer Group Ltd.This presentation may not be disclosed, used or duplicated, in whole or in part, without the prior written consent of Mer Group Ltd.

2. Presentation Agenda • About MER Group • Global Presence • Telecom Division Portfolio • Partners & Customers

3. About MER Group • Holding company: Telecom, Security, CleanTech • Global presence: > 40 branches in Asia, Africa, Europe, North, Central and South America • Publicly traded firm (TASE:CMER): since 1992 • Headquarters: Holon, Israel • Headcount: > 1,400 employees • 2012 sales:> $200 million • Manufacturing facilities: 3 in Israel • R&D centers: 2 in Israel

4. Our Divisions • Water • Renewable energy • Natural gas solution providers • Telecom infrastructure • Public Transport • MVNO/MVNE • B/OSS • MFS • Broadband infrastucture • HLS • Defense • Emergency systems solution providers

5. Presentation Agenda • About MER Group • Global Presence • Telecom Division Portfolio • Partners & Customers

6. Global Presence

7. Presentation Agenda • About MER Group • Global Presence • Telecom Division Portfolio • Partners & Customers

8. Telecom Division Portfolio Smart Cards & NFC Infrastructure MFS MVNO/E B/OSS & M2M (CBE) Public Transport Value Added Services Labs Broadband

9. Infrastructure Business Unit

10. Wireless Infrastructure Turnkey Solutions “Telecom infrastructure spending is projected to bounce back in the year ahead … driving growth of roughly 4%.” Infonetics Research The Need: 1/3 of the world’s population is currently lacking cellular service, leaving an underserved marketplace for cellular operators The Solution On Air, Everywhere On Air, Everywhere • End-to-end solution from design through manufacturing to implementation of wireless infrastructure

11. Wireless Infrastructure Turnkey Solution Network planning and design Site acquisition and permitting Site design Site construction and civil works Design, manufacture, supply & erection of towers Design and implementation of MW links Base station equipment installation and commissioning Core equipment installation and commissioning Network optimization and maintenance

12. Infrastructure - Field Proven Solution Multi-Country End-to-End Wireless Infrastructure Project Tigo global mobile operator / Africa • Benefits • Short time-to-market network deployment • Single integrators across multiple territories • Full control of tower provisioning • Customizing towers • Creative solutions for building local infrastructure • Challenges • Difficult conditions • geography and climate • poor infrastructure • unstable political situation • Short lead times Solution Implemented complete end-to-end solution with projects running simultaneously in several countries covering hundreds of sites

13. Wi-Fi Coverage “Global mobile data traffic is anticipated to grow at 72% in 2013 to reach 23,000 Peta Bytes. By 2018 total mobile data traffic will likely eclipse 131,000 Peta Bytes.” ABI Research The Need: A high concentration of mobile devices in enclosed areas/buildings such as malls, companies, sport arenas, public transport terminals, etc. place particular demand on network bandwidth, potentially degrading performance. The Solution • Wi-Fi coverage solution for appropriate QoS utilizing DAS technology. Solution covers full implementation from planning to hardware and software integration

14. Wi-Fi Coverage - Field Proven Solution | High QoS for 2G and 3G at ECOPETROL buildingCLARO global mobile operator / Columbia • Challenges • Highest building in Bogota • High interference levels with areas of poor or no coverage • Low QoS for both incoming and outgoing calls • 1200 users over 27 floors • Solution • 2G and 3G measurements • Network planning  & design • 3 master units, 24 remote units and 184 indoor antennas • Network implementation • Benefits • End User • High QoSwith no dead spots • Ability to make andreceive calls • Ability to navigate • Claro • Increased traffic • Increased customer retention

15. Customer Business Enablement (CBE) Business Unit

16. CBE Portfolio MVNO/E B/OSS Providing services to MNOs, MVNOs and SIs to enable provision of mobile network services such as connectivity Providing operators with real-time control over customers, networks, services and business performance Cloud Billing M2M A fully hosted, converged billing system that delivers the vendor's existing functions on a SaaSbasis.  An end-to-end platform that enables operators to deliver a complete solution to a range of market verticals * MVNO/E, B/OSS and Cloud Billing are based on MER Telemanagement Solutions (MTS) software

17. Customer Business Enablement Media & Content IPTV \ OTT PPV\VoD\nPVR Broadcast\Satellite Gaming\Gambling Telecomm & Datacomm Wireless \ Wireline VoIP \ ISP Wifi \ WiMAX Value Added Services Financial Services mCommerce mPayments mBanking Utilities & Infrastruct. Gas \ Electricity Water Transportation Cloud & IoT IaaS/PaaS/SaaS Multi tenancy App-stores eCommerce Business-to-Consumer (B2C) Business-to-Business (B2B) Business-to-Business-to-Consumer (B2B2C) Consumer-to-Consumer (C2C) Machine-to-Machine (M2M)

18. MVNE and MVNE+ “The pace of growth of Mobile MVNO is accelerating. More counties and operators will embrace the wholesale business modes which collectively will account for more than 311m subscribers by 2017-end”. Informa Telecoms & Media The Need: Retailers have a major advantage over large MNOs in that they have access to highly segmented niche audiences as well as developed marketing networks. But they are daunted by the move to becoming MVNOs due to lack of experience. The Solution • Complete B/OSS • Intelligent Network and core Network Elements • Full MFS framework and a variety of Value Added Services • Minimal time to revenue • Flexible business models • Worldwide experience

19. MVNE - Field Proven Solution | Billing and Operating Services (B/OSS) Project: Simple Mobile MVNO / US (app. 1.5 million customers) • Challenges • Ability to reach specific market segments, but lacked the technical background, solution, and funding • Thin business model • Benefits • Simple Mobile focused on marketing and sales • Was able to go through a massive customer base and revenues expansion (0 to 1.5M in two years) • Solution • Developed end-to-end MVNE framework supporting a telecom provider’s operations with $750 million turnover • Full responsibility for activating new subscribers, billing, customer service, accounting, supply chain and more • Hosting and operating all IT systems under a rigorous SLA • Running fully redundant hardware and software

20. B/OSS “Combined next generation OSS/BSS market (software revenue) will reach US$ 54.36 billion globally in 2018 with 13.72% CAGR  Informa Telecoms & Media The Need: Operators need real-time control of their customers, networks, services and the performance of their businesses. They must run their networks in an optimal manner while at the same time enhance the user experience and meet consumer needs. The Solution • Carrier-grade B/OSS • Multi market best practices • Complete convergence4 • Minimal time to revenue • Flexible business models • Worldwide experience

21. B/OSS - Field Proven Solution | B/OSS Project: Warner Bros. Interactive Entertainment / USA • Solution • MER’s cloud billing installed in WB colocation, as a complete business and operation support framework, seamlessly embedded in the various online worlds using a robust set of APIs • Hundreds of thousands of concurrent online gamers received end-to-end subscription management, entitlement management, customer care, self-care, content pricing, billing and online payment clearing Challenges WB was launching massive, persistent online worlds, and was looking for a way to handle customer entitlement, management and billing and care • Benefits • Strict and rigorous ‘always on’ configuration with clear SLA • Ability to seamlessly add new worlds, and change the sizing of existing ones • WB could focus on its core competencies of developing new content

22. M2M The Internet of Things “The M2M industry is projected to maintain 23 percent annual growth rates over the next decade, and what is today a $121 billion business will be worth $948 billion by 2020” Carbon War Room & AT&T The Need: Customers today need to optimize business processes to save time and money. M2M enables businesses to create new market opportunities and revenue streams. It also helps customers to address growing compliance and sustainability requirements The Solution • Working from the vertical layer to the enablement platform, we provide a solution that brings value to the MNO. The end-to-end platform enable operators to deliver a complete solution to a range of market verticals and applications

23. M2M- Field Proven Solution | One of the Largest M2M Implementation: Cooperation of MER Security & MER Telecom Divisions City of Buenos Aires, Argentina • Solution • Comprehensive control and management system • 1200 CCTV Surveillance Cameras • License Plate Recognition (LPR) Sites at City Entrance • Over 100 police stations connected to the optical network • Wireless base station sites • Challenges • Significant technology challenge in one of the largest cities in the world • Create a safe and controlled environment – reduce crime rate, control traffic, etc. • Variety and amount of sensors and cameras • Benefits • Rapid deployment • Cost effective design • Turnkey solution • Advanced control and monitoring of large amount of sensors and cameras • Flexible solution that enables rapid implementation of new sensors

24. MFS Business Unit

25. MFS – Mobile FinaGate “The mobile money industry is forecasted to grow from $US13.8 billion in 2013 to $US278.9 billion by 2018” MarketsandMarkets The Need: ~70% of global mobile phone users do not have access to banking services. MFS provides these services to the banked and unbanked population over the mobile phone. The Solution • Simple, secure, end-to-end financial services solution • Implements transparency and improves fraud prevention for dedicated budget in the mGov domain • Increases volume of activities offered to subscriber base

26. MFS - Field Proven Solution | MFS Project: La Poste • Challenges • Improve image with public and governmental agencies • Provide mobile financial services to unbanked population • Implement transparency • Benefits • Multi access methods (smartphones, feature phones and web) • Multi language, multi currency and multi accounts • Cost effective hosted services with “pay-as-you-grow” approach • Embedded security elements for full transparency and fraud prevention Solution MER Mobile FinaGate provided a simple, secure and end-to-end solution for the provision of valuable and market changing financial services to anyone with a mobile phone.

27. Smart Card & NFC Business Unit

28. Smart Cards & NFC “NFC mobile payments to drive contactless transactions to reach nearly $50 billion worldwide by 2014” Juniper Research The Need: The growing mobile demand, an increase in initiatives for automated healthcare systems, government initiatives for national ID cards, and an increased effort in Europay, MasterCard, Visa (EMV) compliance are fueling the demand for smart cards. The Solution • Software for smart cards to suit a range of industries • Acceptance platforms for payment and public transit • Strong authentication servers (Hardware Secure Module)

29. NFC - Field Proven Solution | NFC m-Wallet Solution: Cellcom/Israel’s largest MNO • Challenges • Enable complete wallet solution including: • Standard VISA payments • VAS (coupons and loyalty cards) • Integration with leading PoS (Point of Sale) (leading Israeli retailers) • Benefits • Greater security and flexibility • Ability to store large volume of information and applications • Increased stickiness • Enhanced end user experience • True convenience – anywhere and anytime • Solution • Solution Architecture • SIM based wallet applet • Wallet / POS integration • Android Middleware • Support for smart poster NFC tags • NFC handset certification

30. Public Transport Business Unit

31. Public Transport “Two of the undeniable forces behind the evolution of transit fare payments have been passenger needs for rapid fare payment transaction speeds and payment choices. A third legitimate element, more recently, merits inclusion: payment security.” Smart Card Alliance The Need: Transport operators and integrators are striving to mitigate the risk of fraud and offer an enhanced and more convenient experience for passengers while optimizing traffic capacity and generating new sources of revenue. The Solution • End-to-end solution • Hardware and software • Value Added Services

32. Transportation Turnkey Solution Devices & Services Validator to approve/deny passenger ascent Personalization/ Service Unit – personalization and card life-cycle management Ticket vending machine (TVM) & cashless loading machine (CLM) with different payment methods Driver Console to approve/deny smart cards Back office: management of transactions, resources, fleet, financials operations, monitors and public transportation licensing Remote Secured Transaction Management (SAM) Professional services – interfaces, integration, etc. Portable Supervisor Unit (PSU)

33. Transportation Turnkey Solution Value Added Services Free Wi-Fi access Multi-Channel Audio (MCA) Automatic Deposit Cashier

34. Transportation - Field Proven Solution | Remote top up solution for Rav-kav cards VeriFone (Partner) • Challenges • Revolution in Israel’s public transport system new technology, systems and approach • Operating the remote unit and remote servers instead of using local security component • Lack of unified system to operate remote Secure Access Module (SAM) • Creating cost effective alternative to RavKavcharging • Benefits • Greater convenience • Increased stickiness • Increased revenues • Solution • Terminals for card charging in school • Back office transaction manager (inc. remote SAM server)

35. Broadband Business Unit

36. Broadband Infrastructure “ By 2017, wired devices will account for 45 percent of IP traffic, while Wi-Fi and mobile devices will account for 55 percent of IP traffic. In 2012, wired devices accounted for the majority of IP traffic at 59 percent.” Cisco VNI 2012 - 2017 The Need: The demand for faster speeds, wider bandwidth, reliability and availability has grown tenfold to accommodate the plethora of services introduced by governments and municipalities and operators, including real-time and video-based services The Solution • Provide products, services and solutions for the following: • Operator’s core network, • Fiber Optic, copper and/or over-the-top infrastructure • Customer premises equipment (CPE) – STBs, Modems, etc.

37. Broadband Infrastructure Turnkey Solution Planning and Design Commissioning and Training Network planning and topology “as-made” documentation Technical specifications Staff onsite training Mapping BOM Ongoing Service and Support Integration and Implementation 24/7 service and support Proof of Concept Software updates Equipment delivery and installation Upgrades Testing and optimization Problem fix

38. Broadband - Field Proven Solution | Fiber to the Home Portaal, The Netherlands • Challenges • Competitive and saturated market • Provide triple play services to tens of thousands of households across the Netherlands. • Establishment of CATV head-ends throughout the Netherlands • Benefits • Over 20,000 households connected to Portaal network throughout five cities • Enhanced customer satisfaction through the delivery of advanced television services, and a broad choice of TV channels. • Increased customer loyalty and retention • Solution • Built and operated a FTTH network, including five regional Head-Ends across the Netherlands • Delivered VoIP, Broadband services and analog TV broadcasts • Provided Head-End equipment, FTTH transport and access equipment • System integration services

39. VivAlertSmart Alert & Notification System “Disasters in the past 35 years have taken an estimated 2.5 million lives and cost more than US$1.5 billion, mainly in developing countries.” Asian Disaster Preparedness Center The Need: Communication is vital before, during and immediately after disasters. However disasters tend to destroy infrastructure and disrupt communication services. To minimize risk, a robust addition to the national EAS is required. The Solution Always-on unit that relies on terrestrial digital TV broadcasting (DVB) and delivers real time voice alerts and web pages via Wi-Fi to handheld (mobile, tablet) device

40. VAS Business Unit

41. Value Added Services 15 million RCS, RCS-e, and RCS-like service subscribers forecasted by 2013. We expects mobile operators around the world to take in a cumulative $1.6 billion over the 5 years from 2013 to 2017 from RCS service fees Infonetics The Need: Withlegacy messaging still growing in developing markets, there is a need for a low cost multi-VAS (SMS, MMS & VM) solution. Reducing Capexand Opexis still required offering a hosted and managed solution. In addition, MNO’s are looking for ways to become legitimate IP players and imitate OTT to prevent the leakage of messaging usage The Solution • Affordable multi-vas solution on premise or over the cloud including SMS, MMS and VM. • GSMA “Accreditation Ready” RCS-e and RCS 5.1 solution with integration to RCS clients (Neusoft, WIT etc’) running as a hosted solution or on premise

42. Labs Business Unit

43. Labs The Labs business unit has all necessary facilities, warehouses, test equipment, logistics and management tools to become a leader in its field The Need: There is a continuous need to test, verify and repair hardware, applications and services that are deployed. This allows vendors and service providers to ensure that their products will perform as expected when deployed commercially. The Solution • Offering the full range of technical service and maintenance as well as engineering solutions/support based on accumulated experience with proven performance in a wide variety of disciplines • RF Labs • Modem Labs • STB Labs

44. Presentation Agenda • About MER Group • Global Presence • Telecom Division Portfolio • Partners & Customers

45. Our Customers

46. Thank You This presentation constitutes proprietary and confidential information of Mer Group Ltd.This presentation may not be disclosed, used or duplicated, in whole or in part, without the prior written consent of Mer Group Ltd.