Ladies and gentlemen, thank you for standing by. Welcome to the Perion 2012 Guidance Conference Call. All participants are at present in listen-only mode. Following management’s formal presentation, instructions will be given for the question-and-answer session. (Operator Instructions). As a reminder, this conference is being recorded, January 12, 2012. With us today from Perion, we have Josef Mandelbaum, the CEO; and Yacov Kaufman, CFO. I will now hand over the call to Todd Fromer of KCSA for the Safe Harbor information. Mr. Fromer, would you like to begin?

[Starts Abruptly] reviewing its current strategy, issuing guidance for its 2012 financial results and providing an update on the Smilebox acquisition. The press release detailed in 2012 guidance is available on the company’s new website, www.perion.com. Also posted on the website is the live webcast that contains a slide presentation that will be used on this call and which will be archived. Before we begin, I’d like to read the following Safe Harbor statement. Today’s discussion will include forward-looking statements. These statements reflect the company’s current views with the respect to future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including those discussed under the heading “Risk Factors” and elsewhere in the company’s annual report on form 20-F that may cause actual results, performance or achievements to be materially different from any future results, performances or achievements anticipated or implied by these forward-looking statements. The company does not undertake to revise any forward-looking statements to reflect future events or circumstances. Revenue and other financial estimates contained in this presentation have not been audited or reviewed by Perion’s independent auditors. And accordingly, they express no opinion or other form of insurance as to this information. The company provides no assurance that these preliminary results will not change following the completion of its financial audit of results of operations for the fiscal fourth quarter 2011, which are expected to be completed by March 2012. With that said, I’ll turn the call over to Josef Mandelbaum, Chief Executive Officer. Josef, the call is yours.

Thank you, Todd, and happy and healthy New Year, everyone. Welcome to our 2012 guidance call. Today, I’d like to focus my comments on three items. First, a review of and progress update on our strategy; second, financial guidance for 2012; and third, an update on the Smilebox acquisition. After my prepared remarks, we will then open up the call for questions. These continue to be exciting times for our company as the strategy we have outlined over a year-ago comes to life with the execution of our plan. In the past 16 months, we have methodically and successfully executed the initially phases of our strategy and have positioned ourselves for significant growth in 2012 and beyond. The success of our mission is contingent on our further investing in and executing on four areas of growth. Infrastructure and consumer insight, building a robust product line, and consumer marketing and acquisitions. In the past year, there has been a tremendous upsurge of articles and media coverage on the power and importance of the 40 plus year old second wave adopters or SWAs. In particular, baby boomers. We view the amplified coverage of our market target as a strong validation of the strategy we set out over a year-ago. We have positioned Perion to be very well situated to be a leading application provider to this market. As a reminder the 40 plus year-old SWA is the fastest growing segment online and can be broken down according to numerous traits, and age is certainly one of them. While SWAs come in all ages, our focus is on the needs of each subgroup and their different needs as they move through their natural lifecycle. Our investment in consumer research will help us better serve the needs of each of our users. As you…

Thank you. Ladies and gentlemen, at this time we will begin the question-and-answer session. (Operator Instructions). Your questions will be polled in the order they are received. Please standby while we poll for your questions. (Operator Instructions). The first question is Aram Fuchs of Fertilemind Capital. Please go ahead. Aram Fuchs – Fertilemind Capital: Yes, I was wondering if you can get into the economics of the advertising campaigns that you are doing and how they fit into your guidance for 2012. Thanks.

Hi Aram. Thanks very much for the question. If you mean with regard to our advertising campaigns, our customer acquisition investments – well in 2011, we are expecting that number to be approximately some $8 million, while in 2012, we are expecting that to total about $14 million, with most of the growth coming from customer acquisition, while our viral growth is rather stable. Does that answer your question? Aram Fuchs – Fertilemind Capital: Great. So customer acquisition, advertising spend in 2012 will be $14 million?

Approximately. And Yacov numbers, he just gave me, includes Smilebox in both numbers. Aram Fuchs – Fertilemind Capital: Right, right, okay. So in the previous call – and I apologize, I’m in the Miami Airport, there is music back here. So previously I think you said that the Q3 number would be a steady-state number on a quarterly basis. How does that reconcile?

Yes, well that’s true, Aram. But in Q3 we only had one month of media buying or customer acquisition of course coming from Smilebox. Aram Fuchs – Fertilemind Capital: Okay.

Both companies are running at a steady state. The reason for the difference is, of course, now we have a full quarter of Smilebox customer acquisition cost. Aram Fuchs – Fertilemind Capital: Okay. And this forecast for the number of subscribers, does – that assumes Fixie, some number for Fixie as far as Smilebox, IncrediMail, right?

Correct. Aram Fuchs – Fertilemind Capital: Okay, but you don’t want to tell us what that number is, because we have the numbers for IncrediMail and Smilebox this quarter.

Then you can do the math. At this point in time, we are still early stages of Fixie. We are encouraged by what we see so far, but it's still early stages. So we don’t want to put out a number yet at this point in time, but we are very optimistic about that, as well as we are on the IncrediMail and the Smilebox front. Aram Fuchs – Fertilemind Capital: Okay. And I appreciate your mentioned the multiplatform element of your strategy. Smilebox has a nice little mobile app. I'm curious, is there a time line that you could give us of when other apps might come out or other things besides prior desktop PC applications?

I would say stay tuned to the next couple of weeks for one release or something. And then we hope on a relatively frequent basis throughout the year, we’ll have some updates on mobile or tablet expansions. Aram Fuchs – Fertilemind Capital: Okay. Great, thanks for your time.

Thank you, Aram. Have a safe flight. Aram Fuchs – Fertilemind Capital: Thank you.

The next question is from Mike Solinger [ph]. Please go ahead.

The net income guidance for 2012 of $7 million to $8 million, is that GAAP or non-GAAP?

Thank you, Michael. That is a non-GAAP number. When we speak to our non-GAAP, allow me to highlight some of the differences between the GAAP and the non-GAAP. We continue to have a deferred revenue difference and we expect that to contribute some million dollars from the top line all the way to the bottom line as well as some amortization costs from the acquisition. So the $8 million, those $7 million to $8 million we are talking to it would be non-GAAP numbers.

Okay, thank you.

(Operator Instructions).There are no further questions at this time. Before I ask Mr. Mandelbaum to go ahead with his closing statement, I would like to remind participants that a replay of this call will be available in three hours on the company website at www.perion.com. Mr. Mandelbaum, would you like to make your concluding statement?

Yes, thank you very much. And thank you all for joining us today. With a seasoned and proven management team, a new brand to reflect our strategy and future aspirations, a successful acquisition under our belts in strong and sustainable financial results. We firmly believe that our plan for 2012 will further enhance shareholder value. Thank you very much, and happy and healthy New Year to everybody.

Thank you. This concludes the Perion 2012 guidance conference call. Thank you for your participation. You may go ahead and disconnect.