Strategic Partnership

19 June 2015

CloudTag Inc.("CloudTag" or the "Company")

Strategic Partnership gives CloudTag access to tens of millions of users

CloudTag (CTAG:LN), the company that brings personal monitoring to the health, wellbeing and fitness markets, is pleased to announce that it has entered into a strategic partnership with Adience Solution ("Adience"), a mobile analytics and commerce ecosystem with a continuously growing user base of tens of millions of mobile consumers.

Pursuant to this partnership, CloudTag has signed an agreement which grants CloudTag a licence to Adience's technology on a revenue sharing basis with no upfront payments (the "Agreement"). Under the terms of the Agreement, MyCloudTag, the Company's health and fitness mobile app, will be marketed and distributed directly to Adience's user base and will integrate Adience's proprietary, cutting edge user profiling technology.

Adience's advanced profiling technology combines deep machine learning algorithms to analyse users based on more than 1,000 different data points, which will create rich and precise profiles for each user of MyCloudTag. These profiles will allow deep insights into the app user base, enabling CloudTag to discover the most valuable user demographics. This ability will assist with improving the user experience and in-app product offerings, as well as result in upselling opportunities. In addition, the demographics associated with most valuable users will be used for further targeted user acquisition, including Adience's user base.

Amit Ben-Haim, CEO, comments: "I am delighted to be working so closely with Adience and its highly experienced team as we look to increase our app user base ahead of the launch of our wearable device at the Consumer Electronics Show in January 2016. This partnership gives CloudTag immediate access to tens of millions of consumers and we expect to benefit enormously from the deep customer insights gained in the process."

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About Adience Solution

Adience provides a deep understanding of mobile customer interests and needs. The Adience mobile commerce ecosystem was developed by a team of talented engineers and data scientists who, by leveraging their unique deep, machine learning capabilities and technologies built from scratch for the mobile environment, are able to offer the best of breed solutions for user classification, analytics and product recommendations to customers. www.adience.com