Magic Software Signs Deal With State of Nebraska to Provide Comprehensive Public Safety Records Management System

IRVINE, Calif.- Magic Software Enterprises (Nasdaq: MGIC - news), a leading provider of state-of-the-art business solutions, Wednesday announced that it has signed a deal with the State of Nebraska to provide a comprehensive public safety records management solution for all agencies within the State.

The solution, which will give agencies the ability to integrate records, court, jail and CAD functions, also will include a centralized database of criminal activity to be created using statistical and investigative information.

The solution is being developed by Magic subsidiary, Access Data Corp., whose widely respected Magic-based Sleuth^© records management system will be customized to include sophisticated interagency data sharing that uses master files to provide the common link between applications and modules. One hundred installations of the records management system, which will include extensive training and support, are expected to take place throughout the State over the next two years.

The records management solution being developed for Nebraska by Access Data Corp., 51%-owned by Magic, will include the following key benefits:

• Photo line-ups, crime scenes, and evidence and property photos
• Master file searches based upon vehicles, addresses, activities or persons
• State forms used for generating accidents, incidents and arrests
• Password/login security
• Investigative tools that allow city-by-city crime comparisons, tracking of criminals, suspects and potentially dangerous individuals, background checks, etc.
• Daily reporting tools

The system will utilize a sophisticated master files system that will be built as a by-product of report input and that will provide the common link between applications and modules. A master names file will facilitate record input by allowing one key stroke to load name, date of birth, social security number, driver's license number, and a physical description of anyone previously input into the system. A master vehicle file will provide complete information about vehicles entered into the system with a state and license match. City, state and zip code information also will be accessible using a single stroke.

All information will be password protected to the user ID level, while security levels will dictate the ability to create, modify, query and/or delete records. Pop-up tables and on-screen help will assist users in obtaining complete data. Information will be collected and sent in monthly through an automated batch program to the Nebraska's central repository.

"We chose to work with Access Data Corporation and its Sleuth solution because the underlying Magic technology made it possible for the solution to be quickly and easily modified and customized," said Michael Overton, head of Nebraska's State Crime Commission. "In the criminal justice system, time and the ease with which information can be integrated and accessed from a number of agencies can make all the difference when it comes to saving lives."

Access Data Corp. has extensive experience automating police departments, sheriffs' offices, jails, courts and dispatch centers, sharing information among county-wide installations. It has created interfaces to other computers systems (for instance, 911 telephone systems and the NCIC computer network, in Washington, D.C.), as well as written interfaces to other devices that aid in records management, such as bar code readers, digital cameras, fingerprint systems, digital mapping systems, and mobile data terminals. Recently, Access Data Corp. did a similar installation in more than 100 agencies in Iowa.

"We are extremely excited about the opportunity to work with the State of Nebraska to automate their records management system," said Israel Teiblum, president of Magic. "We knew when we purchased a majority interest in Access Data Corporation last year that their experience in the public safety arena was unparalleled, and that it would open the door for Magic to work with the many fine professionals employed by public agencies throughout the United States."

About Access Data Corp.

Access Data Corp. provides comprehensive, totally integrated database management solutions for law enforcement, communications, corrections/detentions and emergency service providers throughout the United States. In business for more than 17 years, the company has installed its solutions at more than 350 locations in 14 states. Its Sleuth^© solution, which includes integrated file management, on-screen digital camera button controls, mapping capabilities and product interfaces, as well as many other features, is one of the most respected database management applications available to small- and medium-sized public safety agencies. Access Data Corp. has headquarters at 11 Vail Avenue, Angel Fire, New Mexico 87710, telephone 505/377-6757, fax 959/377-3410, http://www.sleuthsoftware.com.

About Magic Software Enterprises

Magic Software Enterprises, a member of the Formula Group (Nasdaq: FORTY - news), develops, markets and supports software development and deployment technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries. The company's North American subsidiary is located at 1642 Kaiser Avenue, Irvine, Calif., 92614, telephone 949/250-1718, fax 949/250-7404, http://www.magic-sw.com.

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 producing computer-based solutions.

Except for the historical information contained herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product conditions, both here and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in the company's most recent annual report and other filings with the Securities and Exchange Commission.

Contact:
Magic Software Enterprises, Ltd.
Katharine Hanley, 949/250-1718 ext. 220
khanley@magic-sw.com