MIND CTI Ltd | August 2016

Safe Harbor

This presentation may contain statements that are forward looking. These
statements are based on management's beliefs and assumptions and on
information currently available to management. Forward-looking statements are
not guarantees of future performance, and actual results may materially differ.

The forward-looking statements involve risks, uncertainties, and assumptions,

including the risks discussed in the Company's filings with the United States
Securities Exchange Commission. The Company does not undertake to update any
forward-looking information.

About MIND

MIND is a leading provider of

Convergent, real-time, end-to-end billing and customer

care, product based solutions, for Tier 2 & 3 carriers
Call accounting solutions for organizations and large
multinational corporates

MIND Highlights

A public company (NASDAQ-MNDO)

Headquarters in Israel; Offices in USA, UK and Romania
360+ Employees worldwide
Focus on profitability
Large and growing worldwide customer base
Industry leading partners
Diversified portfolio and revenue stream
Recurrent revenue and long-term order backlog
Experienced management team

Company Strategy

Focus on product based end-to-end solutions

Increase revenue stream from each market segment:
enterprise market, traditional carriers and new carriers
Focus on strategic accounts and channel partners

Expand offering by partnerships

Penetrate new markets

Maintain profitability

Diversified Billing Customer Base

MINDBill Solution Differentiators

Truly convergent prepaid and postpaid platform

Comprehensive solution - includes billing, real-time rating for multiple
services, customer care, mediation, provisioning and Point-of-Sale
Prepaid rating capabilities compatible with postpaid flexibility
Extensive experience over 20 years
Proven track record of on-time, on-budget deployments
Scalable, open and expandable architecture

State-of-the-art technology (multi platform support)

Commitment to customer success
Tailored to meet customer needs
Excellent ongoing support

Call Accounting (CMS) Customer Base

Call Accounting / Billing PhonEX ONE

A management tool for the control of the corporate

telecommunication expenses
Distribute cost per cost centers
Increase awareness
Control/cut expenses
Eliminate misuse and abuse
Monitor personal phone usage
Carrier bill verification
PhonEX ONE is a state-of-the-art product
Comprehensive, flexible, fully web-based solution
Based on MS technology

PhonEX One Solution Differentiators

20 years of experience with 20,000+ installations

Technology Partners: Cisco, Avaya and Microsoft

High-end solution for multinational corporates
Multi-language and multi-currency support

Proven scalability with over 100,000 users on one system

Full web-based solution using ASP.NET

User friendly

Tailored to meet customer needs

Excellent ongoing support

Call Accounting Technology (Microsoft Based)

PhonEX ONE supports multi-languages and multi-currencies

Ability to configure policies/permissions per user
Integration with Microsoft active directory
Full web-based solution using ASP.NET
Development language C#, .NET

PhonEX ONE database is Microsoft SQL

PhonEX ONE is a scalable solution

Financial Overview

Investment Highlights

Consistent positive cash flows from operating activities

Strong balance sheet
Long-term relationships and some long-term contracts

Company invests significantly to ensure technology leadership

Strong business model with recurring revenues
Operation margin target of 20%

Dividend policy once a year, a cash dividend will be distributed,

subject to Board review and approval. The amount will be equal to our
EBITDA plus financial income (expenses) minus taxes on income

Revenue by Year and Cash Flow from Operations

30,000
25,020

25,000
20,060
20,000

18,447

20,928

20,209

19,886

19,473

18913

18,480

17,574

15,000

10,000
6,266
4,671

5,000

6,304

4,385

4,112

4,936

6,297

5,190
3,841

593
0
2006

2007

2008

2009
Revenue

2010

2011

2012

Cash Flow from Operations

2013

2014

2015

Revenue by Region

16,000
14,411
14,000
12,000

11,292

10,000
8,000

7,164

6,697

6,000
3,444

4,000

2,939

2,000
Americas

Europe
2014

2015

ROW

Quarterly Revenue Trend

7.0

6.3
6.0

6.5

6.5
5.7

5.7

5.2

5.1

5.0

4.4

4.4

1Q13

2Q13

5.2

4.5

4.8

4.6

4.3

4.0
3.0
2.0
1.0
0.0
3Q13

4Q13

1Q14

2Q14
License

3Q14

4Q14

Maintenance

1Q15
Services

2Q15

3Q15

4Q15

1Q16

2Q16

Revenue by Product Line

($ in thousands)

2014

2015

4,030

4,361
Billing & Customer
Care

20,990

Call Management
Solutions

Billing & Customer

Care

16,567

Call Management
Solutions

Revenue Distribution

($ in millions)

2015

2014

3.9

5.4
License
12.5

7.1

Maintenance

Services

9.3

License

7.7

Maintenance

Services

Quarterly Profit & Loss

($ in Thousands)

Q1 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

Q4 2015

Q1 2016

Q2 2016

$ 4,443
2,257
2,186

$ 5,697
2,809
2,888

$ 6,293
2,895
3,398

$ 6,511
2,886
3,625

$ 6,519
2,559
3,960

$ 5,704
2,454
3,250

$ 5,194
2,173
3,021

$ 5,211
2,028
3,183

$ 4,819
1,975
2,844

$ 4,564
1,888
2,676

$ 4,330
1,749
2,581

1,190
418
438

970
327
443

988
259
545

606
263
567

776
291
379

762
241
684

650
364
299

713
289
448

818
279
335

991
206
357

902
266
431

140

1,148

1,606

2,189

2,514

1,563

1,708

1,733

1,412

1,122

982

Impairment of ARS
Other Financial income

133

74

98

(348)

(130)

(289)

155

28

(8)

260

79

Income (loss) before taxes

Taxes
Net Income (Loss)

273
111
162

1,222
222
$ 1,000

1,704
254
$ 1,450

1,841
706
$ 1,135

2,384
1,274
486
369
$ 1,898 $
905

1,863
277
$ 1,586

1,761
313
$ 1,448

1,404
325
$ 1,079

1,382
208
$ 1,174

1,061
26
$ 1,035

Revenues
Cost of Revenues
Gross Profit
Research & Development
Selling & Marketing
General & Administrative
Goodwill Impairment
Intangible Asset Impairment
Operating income (loss)