Sofwave Medical Ltd.

Investor Presentation • Apr 19, 2021

Breakthrough Ultrasound Technology For Non-invasive Skin Tightening

DISCLAIMER

This presentation (the "Presentation") is for informational purposes only and does not constitute or form any part of any offer or solicitation to buy or subscribe for securities of Sofwave Medical Ltd. (the "Company" or "Sofwave") and should not be regarded as a recommendation or an opinion on such matters. The information included in this Presentation is not comprehensive and does not include all the information with respect to the Company and its business required for any decision concerning an investment in the Company's securities. This Presentation includes forecasts, estimates, assessments, expectations and other information, intent or belief pertaining to future events and/or matters, which constitute "forward-looking statements" as defined in the Securities Law 5728-1968, which is based on current expectations, projections and assumptions about future events. Actual results may differ materially due to variety of factors, some of which the Company has no control over and cannot be reasonably foreseen at this date, including, but not limited to: dependency on third parties engaged by or who contracts the Company and its services, change in the overall economy; the duration and severity of the COVID-19 (coronavirus) pandemic and its impact on the Company and on local and global economy and the Company's ability to manage and develop its business. Such information may not materialize, in whole or in part, or may materialize in a manner significantly different to that forecast. Therefore, actual future results, performances or achievements of the Company may differ materially from what is or may be expressed or implied in this Presentation. Certain information and factual statements (including markets or trends) contained herein are based on or derived from publicly available documents or independent third party sources the accuracy of such information and the assumptions on which such information is based have not been independently verified. The past performance information contained herein is not indicative of future results and there can be no assurance that the Company will achieve comparable results or that the Company will be able to implement its investment strategy or achieve any investment objective.

SofWave

Innovative Technology serving an unmet need

Developed devices based on patent protected high intensity low divergence, multiple ultrasound beam technology for non-invasive skin tightening

Clinical Validation

Completed first product development including pre-clinical research and clinical trials in the US and Europe with leading aesthetic doctors. FDA and CE mark cleared.

Extensive KOL and Distribution Network

Solid KOL support. Initial direct sales force with strong traction in the US. Major distributor signed up for European and APAC markets.

Fast growing market

In 2021, Global Medical Aesthetic market sales are expected to grow 19% to \$13B

2016 2017 2018 2019 2020 2021

Concept and prototype development, animal trials

Prototype and human trials in Europe

US multisite clinical trial and FDA submission

FDA clearance, round B financing and launch of second clinical trials

Initial US and ROW sales, CE mark

Establishment of US direct sales force and distribution channels in APAC and EMEA

Proven track record

Experienced proven talent recruited to the leadership team.

Disruptive Product

Demonstrated combination of excellent clinical efficacy and safety with minimal down-time to patients.

Superior Business Model

Fast, easy procedure that can be delegated to non-physician staff.

Lead Investors

Shimon Eckhouse, XT Hi-Tech and Lynav - Idan Ofer & Udi Angel, Gandyr Nadlan-Judith Yovel Racanati

SofWave Quarterly Revenue Growth*

*2019 and 2020 annual revenue audited, Q1/21 unaudited

Team With A Track Record

Commercial aesthetic medical device expertise

Shimon Eckhouse

Active CHAIRMAN

Inventor of IPL

30 years of aesthetic medical device experience

Louis Scafuri CEO

20 years of aesthetic medical device experience

Ariel Sverdlik CTO

Innovator with 20 years of R&D experience in medical and aesthetic devices using ultrasound

Genady Naschon COO

Over 13 years of aesthetic device experience

Lina Omari CDO

Digital marketing expert with 10 years experience in product development, marketing methodologies & operations.

Ruthie Amir, MD CMO

Board certified physician

15 years of aesthetic medical device experience

Michael (Miki) Eden CFO

Over 20 years of management experience in overall financial & commercial strategy, fund raising M&A transactions, investor relations, and governance

Sofwave Leadership Team Track Record in Medical Aesthetics

• Shimon Eckhouse, co-founder and chairman
  • Founder of Lumenis, took it public on Nasdaq, reached a valuation of >\$1B
  • Founder of Syneron, took it public on Nasdaq, reached a valuation of >\$1B
  • Inventor and entrepreneur in the medical aesthetic device sector, inventor on IPL, RF, vacuum and ultrasound devices. Author of 63 registered US patents, >40 in aesthetic medical technologies
  • Created global market leaders in aesthetics- led numerous acquisitions and mergers at Lumenis and Syneron Candela and earlier stage compamies
  • One of the most well known scientists and business person in the medical aesthetic field. Connected to KOL's, sales people and distributors in medical aesthetics
• Louis Scafuri, CEO
  • President and COO of Marquet, sold to GE medical for \$880M

• Connected to KOL's, sales people and distributors in medical aesthetics

• President and COO of Lumenis
• CEO of Syneron/Candela
• Founder and CEO of ZALEA, web and social media based digital company focused on aesthetic procedures
• Play key role in creating global market leaders in aesthetics- led numerous acquisitions and mergers at Lumenis and Syneron Candela
• Exceptional track record of establishing and growing channel to market capabilities. Significant global network of KOL's, sales people and distributors in medical aesthetics

The Challenge

The clinical impact of aging

Young Skin

60%

Reduction in collagen levels by age 60

Elastin production stops

20's

Older Skin

• Sagging skin, loss of volume
• Wrinkles mid face, around mouth
• Excess fat under chin and neck, large folds on chin neck area

CONFIDENTIAL & PROPRIETARY 7

Mechanism of Action

Thermal injury in the dermis induces the generation of new collagen and elastin

Current Solutions:

Sub-optimal performance

• Significant epidermal damage with long healing periods and patient down time
• Multiple sessions for efficacy
• Lack of real-time treatment feedback
• Complex equipment, untreatable areas, cumbersome treatment
• Highly professional practitioners required

Our solution: SUPERB™

Synchronous Parallel Ultrasound Beams

• Completely noninvasive: 7 synchronous high-frequency ultrasound beams
• SofWave SUPERB™ creates multiple unique geometric 3D cylindrically shaped thermal injury zones
• Volumetric and directional thermal coagulation, parallel to the surface of the skin
• Unique vector lines of tightening along the direction of facial wrinkles and in parallel to the natural vectors of skin tightening

. No damage to underlying structures – nerves, bones, blood vessels or facial fat

SUPERB compared to existing technologies

NON-ABLATIVE

Dermis Temperature 40 to 50⁰C

*Note that for clearance the U/S transducers are shown next to each other along their long axes

Differentiated and Superior

	Non-ablative laser-based technologies, incl. IPL, RF	Ablative laser-based technologies,	Needle with RF based technologies	HIFU-based technologies	Sofwave SUPERB™
Competitors	InMode, Solta, Alma, Cynosure, Lumenis	Solta, Alma, Cynosure, Lumenis, Candela)	InMode, Alma, Lumenis, Candela)	Merz
Damage to Epidermis	No	Yes	Yes	No	No
Efficacy	Low	Good	Medium	Good	Good
Number of treatments	3-6	1-2	3	1-2	1-2
Down-time	Minimal	Long	Long	Minimal	Minimal
Doctors learning curve	Short	Long	Long	Medium	Short
Side effects	Minimum to Medium	Many	Many	Medium	Minimal
Comfort for patient	Medium to Good	Low	Low	Low	Good
Treatment Time (Minutes)	30	40-60	40-60	40-90	30-45

2021 to 2023 Global aesthetic market and skin tightening market*

Industry has returned to pre-Covid levels.

>\$13B

Revenue forecast of the 2021 global aesthetic market

• Skin tightening and body shaping revenue expected growth in 2021 to \$1.8B
• 2023 market expected to grow to \$2.3B a CAGR of 14.9%

Total Worldwide Sales of Aesthetic Products (\$MMs):

Source: Medical Insight 2021

Strong IP

18 global patents pending

Ultrasound Transducer And System

Structure of the ultrasonic transducer with specific attention to skin treatments device and methods

Device and Methods for Other Body Areas Structure of applicator(s) specifically designed for other body area treatments and relevant parameters

Global Phase

Applications underway in key geographies

3 Month Follow Up Results

Single treatment-FDA Trial

Eye Brow Lift, 3 Month Follow Up, Single Treatment

Similar surgical procedure cost ~\$7,000 with significant down-time*

Baseline 3 Month FU

Typical Surgical Lift Result from: https://www.realself.com/surgical/brow-lift

Physician's Business Model

A fast, highly effective single, non-invasive

CONFIDENTIAL & PROPRIETARY 23

Quotes from two of our KOL's

Dr Bary DiBernardo, Facial Plastic Surgeon, NJ

"So if its taking you thirty to forty minutes, say you do one an hour and you are making \$2,500 an hour. And you are not doing it, someone else is. That's a tremendous ROI "

Dr Jason Pozner, Facial Plastic Surgeon, Boca Raton, Florida "Any skin type, no bruising, no redness. Beautiful"

Quote of Prof Eyal Gur, Chairman of Plastic Surgery, Ichilov Medical Center, Tel-Aviv

"התוצאות של הטיפול ב Sofwave -הן מעל למוכר. לאחר אילחוש הטיפול נמשך כ- 30-40 דקות. הוא כמעט לא מורגש ואפשר לחזור לשגרה באופן מיידי. תוך שבועיים המטופלים מתחילים לראות שינוי במראה ולקבל מחמאות. שיא האפקט מגיע תוך כ- 10-12 שבועות – העור נראה חלק ומתוח יותר, המטופלות מרגישות מעולה." -פרופ' אייל גור

"להתראות מתיחת פנים, שלום Sofwave פריצת הדרך שחיכינו לה"

Source: https://www.isravibe.co.il/2020/12/20/sofwave/

Physician Value-Creation

A rewarding business opportunity

Efficacy superior to alternatives, Great patient satisfaction

Per procedure revenue to physician \$2,000-\$3,000

Treatments can be completely delegated

Lower variable cost per patient with no disposable transducers (only pulse consumables) and shorter treatment time

Faster, 4-6 month practice ROI vs > 1 Year for alternatives

Sofwave Near Term Growth Drivers

• Expanding Global market and extensions of distribution channel

• Grow Direct sales force in the US and increase market coverage
• Sign up distributors in: Korea, Taiwan, China, Brazil and Latin America
• Additional Applications and regulatory clearances
  • "Lifting" indications by FDA- Eyebrow lift and Neck lift
  • Body application: Cellulite, Abdominal Shaping, Arms, Buttocks, Decolletage
• •Increased utilization by growing installed base (more treatments)
  • Social and digital platform expansion to B2C to drive procedure demand

Expanding global market share, revenue growth and Strong GM 2023E total

Building the foundation to capture

~4%

market share by 2023

Estimated 2023 Revenue >\$90M, >80% GM

addressable market

~\$2.3B*

Summary

• Highly differentiated technology platform with a strong pipeline, answering a large unmet need for non-invasive skin tightening served by sub-optimal solutions in a \$1.8B market growing at 15% annually
• Strong efficacy and safety profile validated in extensive clinical trials and solid global KOL support
• High patient satisfaction – fast and comfortable treatment with minimal to zero down-time
• Attractive physician business model, great ROI, fast procedure, can be delegated to staff
• Very fast growth Q1/21 revenue ~\$4M almost equal to 2020 revenue (2020 first revenue year)
• Experienced team with a track record of aesthetic medical device commercial success and high investor value creation