ForSoft Ltd. Announces Termination of Billing Project for Bezeq

HERZLIYA, Israel, Oct. 1 /PRNewswire/ -- ForSoft Ltd., (Nasdaq: FORS - news), a leading provider of large-scale IT solutions and services for telecommunications companies, utilities, banks and other enterprises, today announced that it was notified by Bezeq, the Israeli Telephone Company, that due to difficulties in the billing system project, raised because of disputes between American Management Systems ("AMS") (Nasdaq: AMSY - news), the main contractor, and Bezeq, Bezeq had to stop the project. ForSoft Ltd. participated in the project as an independent subcontractor of Bezeq as well as an independent subcontractor of AMS. The project with Bezeq began in December, 1997.

ForSoft is demanding compensation from both sides of the conflict, and the companies are discussing this contemporaneously. Since the discussions have not been consummated yet, ForSoft has no indication, for the time being, as to the impact on its financial results. Neither Bezeq nor AMS stated any claims against ForSoft in conjunction with the project.

Emanuel Cohen, CEO of ForSoft Ltd. said, "As of today, there is no way to exactly estimate the effect of the dispute between Bezeq and AMS on the financial reports of ForSoft Ltd. However, since ForSoft is a major IT services provider, we believe that our 15 year-long profound acquaintanceship with Bezeq's information system, will ensure ForSoft's chances to participate in any alternative project, to be chosen by Bezeq."

ForSoft, a member of the Formula Group (Nasdaq: FORTY - news), designs, develops and implements high quality, innovative, business-critical information systems and software applications for large organizations.

The Formula Group is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions.

For further information on ForSoft Ltd., ForSoft Inc., Consultingdirect.com, and the Formula Group, visit the following web sites:

http://www.forsoft.co.il http://www.forsoftinc.com http://www.consultingdirect.com http://www.formula.co.il

This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to, the company's ability to recruit and retain IT personnel, dependence on large projects, successful implementation of the company's services and competitive factors.