MIND CTI LTD | November 2016

MINDFinancial Presentation Q3/2016

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.

Safe Harbor

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

Finance:

• 250+ employees• Experience management team• HQ Office: Israel • Offices in USA, UK and Romania

• A public company (NASDAQ: MNDO)• Focus on profitability

Team & Offices:

Customers & Partners:

• Large and growing worldwide customer base• Industry leading partners• Diversified portfolio and revenue stream• Recurrent revenue and long-term order backlog

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 thecorporate 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

20,060

18,447 19,473

17,574

19,886 18913

20,209

18,480

25,020

20,928

593

4,671 4,112

6,266 6,304

4,385 4,936 5,190 3,841

6,297

0

5,000

10,000

15,000

20,000

25,000

30,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Revenue Cash Flow from Operations

Revenue by Region

14,411

7,164

3,444

11,292

6,697

2,939

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Americas Europe ROW

2014 2015

Quarterly Revenue Trend

4.3

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16

License Maintenance Services

5.2

5.7

6.56.56.3

5.7

5.1

4.54.44.4

5.24.8

4.6 4.5

Revenue by Product Line

($ in thousands)

20,990

4,030

2014

Billing & Customer

Care

Call Management

Solutions16,567

4,361

2015

Billing & Customer

Care

Call Management

Solutions

Revenue Distribution

($ in millions)

5.4

7.1 12.5

2014

License

Maintenance

Services

3.9

7.7

9.3

2015

License

Maintenance

Services

Quarterly Profit & Loss

($ in Thousands)

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016

Revenues $ 4,443 $ 4,417 $ 4,534 $ 5,086 $ 5,697 $ 6,293 $ 6,511 $ 6,519 $ 5,704 $ 5,194 $ 5,211 $ 4,819 $ 4,564 $ 4,330 $ 4,478

Cost of Revenues 2,257 1,869 1,822 1,923 2,809 2,895 2,886 2,559 2,454 2,173 2,028 1,975 1,888 1,749 1,661

Gross Profit 2,186 2,548 2,712 3,163 2,888 3,398 3,625 3,960 3,250 3,021 3,183 2,844 2,676 2,581 2,817

Research & Development 1,190 1,293 1,268 1,280 970 988 606 776 762 650 713 818 991 902 867

Selling & Marketing 418 408 421 446 327 259 263 291 241 364 289 279 206 266 374

General & Administrative 438 393 436 459 443 545 567 379 684 299 448 335 357 431 263

Goodwill Impairment

Intangible Asset

Impairment

Operating income (loss)140 454 587 978 1,148 1,606 2,189 2,514 1,563 1,708 1,733 1,412 1,122 982 1,313

Impairment of ARS

Other Financial income 133 (7) 35 2 74 98 (348) (130) (289) 155 28 (8) 260 79 44

Income (loss) before taxes 273 447 622 980 1,222 1,704 1,841 2,384 1,274 1,863 1,761 1,404 1,382 1,061 1,357

Taxes 111 45 18 (37) 222 254 706 486 369 277 313 325 208 26 240

Net Income (Loss) $ 162 $ 402 $ 604 $ 1,017 $ 1,000 $ 1,450 $ 1,135 $ 1,898 $ 905 $ 1,586 $ 1,448 $ 1,079 $ 1,174 $ 1,035 $ 1,117