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Revolution by Innovation

By David Ripstein

President & Chief Executive Officer

September 2015

2 September 15

Safe Harbor Provision

Certain statements made herein that use the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products and applications and loss of market share and pressure on prices resulting from competition. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the Securities and Exchange Commission. The Company does not undertake to update forward-looking statements

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Agenda Agenda

September 15

• Company Overview

• Industry Overview & Competition

• Products & Solutions Overview

• Customer Base

• Growth Opportunities

• Business Model & Financials

• Summary

4 September 15

Our Mission

Enabling service providers to provide a high-quality service to their customers, maximize revenue and

prevent churn

By proactively monitoring customer experience and providing actionable analytics

5 September 15

Problem: Increased Strain on Network Infrastructure

Who Suffers? The Subscriber!

Bad Service Quality = Customer Churn = Lost Revenue • AT&T Q2/15 Results

– 1.31% Churn Rate = 1,623,000 Subscribers – With an ARPU of $41, that’s ~$70M of lost revenue

Friction between legacy networks and Smartphone innovation

Smartphone Innovation

& Mobile Data Explosion

Network Evolution

2G43G4LTE

Irate Subscriber

6 September 15

Solution: RADCOM is a…

• Stethoscope for Service Providers

Monitoring the heart of the network to assure a quality service for subscribers

7 September 15

How does the “stethoscope” work?

Big Data Database

Analytics

Communications Network

Software-based Probes

QoE

SMS

+9723333333

40%

Phone No Device

Voice

4G

Network

Data

Data Usage

5GB

8 September 15

RADCOM’s Customer Care Dashboard

Device

No

Speed Test

Tech Download

Speed (kbps)

Upload Speed (kbps)

Ping (msec)

LTE 147 689

Model

Samsung Galaxy 4

+972545555555

40%

Data Used

5GB

Data Distribution

VoIP calls

Web browsing

Applications Used

Application Success Rate

(%) UL + DL Data

(KB)

Facebook 0% 0

Subscriber Usage

Voice Quality

Calls Made

Call Minutes

Success Rate

Quality of

Experience

6 15 45% 38%

Shows a subscribers’ quality of experience

Shows a problem with voice quality

Shows a problem with 4G download

speeds

Shows a problem with the Facebook

application

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Industry Overview & Competition

10 September 15

Move to Network Functions Virtualization (NFV)

Smartphones replace appliances with apps

NFV replaces Network Functions (routers, firewalls etc) with applications downloaded to standard servers

Camera

Maps Calculator

Books Music

11 September 15

Probe-Based Service Assurance Market Landscape

$1.23B

Others 55%

Netscout 45%

Source: Analysys Mason, 2014

Astelia Anritsu Commprove Empirix Polystar Viavi Solutions Inc.

Netscout’s acquisition of Tektronix closed last

month and is an opportunity for RADCOM

12 September 15

Probe-Based Service Assurance Market Drivers

The need to improve customer’s quality of experience

Real-time network monitoring and analytics

Reduce customer churn

Improve optimization processes

Technology migration

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Products & Solutions Overview

14 September 15

History of Innovation

1991 2007

Protocol Analyzer Start Up

1991-2000

Protocol Analyzer 2000-2004

Monitoring 2004-2007

Service Assurance 2007-2013

Virtualized (NFV) Solution

2016 onwards

Propriety Hardware

2014

Software Based

Software-based Solution

Feb 2014-2016

2018

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Growth Opportunities

16 September 15

1) Mobile Data Explosion

Source: Ericsson Mobility Report, November 2014

17 September 15

2) LTE adoption by operators

0.5

0.8

1.2

1.6

2.3

0

0.5

1

1.5

2

2.5

2015 2016 2017 2018 2019

Bill

ion

s o

f Su

bsc

rib

ers

Global LTE Growth Forecast

Source: Ovum December 2014 Estimates – 4gamericas.org

Why is LTE an opportunity for RADCOM?

Operators understand the need for LTE

and have allocated clear budgets for this transition

B

B

B

B

B

18 September 15

3) Network Functions Virtualization (NFV)

March 06, 2015 - Research and Markets

“NFV is poised to transform network and service architecture”

19 September 15

4) Strategic Partnerships

Our software based model has opened up partnership opportunities with much larger vendors helping us penetrate new

markets (such as the USA)

20 September 15

5) Repeat Business to Install Base (60 customers)

Initial PO

Upgrade

Maintenance SW Applications

Upgrade

Maintenance SW Applications

(Traffic Growth) (Technology)

Repeat Business (Recurring revenue)

APAC customer success story (over last 4 years)

Repeat Business = $12M Initial PO $1M

21 September 15

Increasing our TAM

Asia Pacific Market Penetration: Direct

Latin America Market Penetration: Direct

North America Market Penetration: Partnerships Product: NFV-based solution

Europe Market Penetration: Distributors Product: NFV-based solution

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Financials

23 September 15

Share Value

August 2014

August 2015

Exfo

Viav

Netscout/Tek

RADCOM +112%

-35%

-10%

-54%

Astellia -17%

MaveriQ Launch

Feb 2014

Product to Market Process

Share value $5.94

(07/02/14)

24 September 15

Statement of Operations (NON - GAAP)

US$ ‘000s Q2-15 Q2-14 H1-15 H1-14

Sales 4,837 4,970 11,191 10,441

Cost of sales 1,203 1,249 2,332 3,017

Gross Profit 3,634 3,721 8,859 7,424

Gross margin 75% 75% 79.2% 71.1%

R&D, gross 1,274 1,462 2,747 2,984

Less participation 148 289 148 587

R&D, net 1,126 1,173 2,599 2,397

Sales & marketing 1,413 1,720 3,363 3,617

General & administration 468 519 990 1,059

Operating expenses 3,007 3,412 6,952 7,073

Operating profit 627 309 1,907 351

Financial income (expense) 78 51 (374) 257

Net profit 705 360 1,533 608

Net taxes (100) 0 (107) -

Net profit 605 360 1,426 608

25 September 15

Q2-15 Financial Highlights

Cash Balance Increased by

$5.9M to $9.9M

Net income for H1-15

totaled $640,000

Long-Term Target for

Gross Margin Raised to 80%

26 September 15

Major Shareholders & Capital Structure1

(As of 30/06/2015)

Zohar Zisapel (Co-Founder,

Chairman), 29% Major

Shareholder, 18%

Yehuda Zisapel (Co-Founder),

5%

Public and Other, 48%

Holder Common Stock Equivalent Held

(Thousands) % of CSO

Zohar Zisapel (Co-Founder, Chairman)1 2,493 29%

Major Shareholder 1,518 18%

Yehuda Zisapel (Co-Founder) 462 5%

Public and Other 4,115 48%

Total 8,588 100%

Derivative

Number Outstanding (Thousands)

Weighted Average Exercise Price

Options 880 $6.53

Warrants 311 $3.49

1 excluding 185,537 warrants and 157,500 options exercisable

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Summary Summary

September 15

• Looking forward: Continue growth in financial parameters

Expand total addressable market via NFV solution

Increase market share within traditional markets via LTE solution

Leverage partnerships to open new scale of opportunity

Reach gross margin target of 80%

“Our platform is strong, our plan is working, our markets are stable, and are optimistic as we look

to the future”

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Thank You