Trading Update

ADGORITHMS LTD

("Adgorithms" or the "Company")

Q3 Trading update

The Company today announces a trading update for the third quarter of 2015. In recent weeks, the online advertising market has experienced severe disruption, resulting in a loss of supply for major online advertising exchanges and a drop in demand from major media buyers.

This has had a significant effect on indirect revenue generation for the Company and is expected to continue to do so for the near term. Consequently, Adgorithms expects its earnings for the full year to be materially below market expectations.

However, the Board believes that although these developments affect financial performance in the near term, they strongly emphasise the market need for the Company's SaaS solution and will expedite the Company's direct sales and adoption of its SaaS solution by advertisers. Adgorithms' proprietary software platform, Albert, can enable brands to place online adverts directly, increasing transparency, marketing effectiveness and return on investment.

Adgorithms is beginning to experience traction with its SaaS platform, and announces that Exit Electronics Ltd., the sole distributor in Israel for Hisense, a leading global consumer electronics company headquartered in China, has engaged Adgorithms for the use of its SaaS platform. The engagement will commence with the launch of Hisense's new flagship products during the upcoming "Black Friday" weekend sale in November.

Management remain focused on converting a strong pipeline of SaaS opportunities into profitable contracts over the coming months.

The Company's board of directors remain confident in the overall long term growth prospects of the business.