Wednesday August 9, 9:09 am Eastern Time

Magic Software Enterprises Announces Support for mBusiness in Its Award-Winning Applications, Magic eService and Magic eMerchant

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 9, 2000-- Magic Software Enterprises (Nasdaq:MGIC - news), a leading provider of state-of-the-art development technology and business solutions, Wednesday announced its support for mobile e-business (mBusiness) in its award-winning Web-based applications, Magic eService^TM and Magic eMerchant^TM.

By integrating Wireless Application Protocol (WAP) support into these applications, Magic expands their reach by enabling remote business transactions and administration, as well as even greater levels of personalized customer service.

Inherently and Magic-ally WAP-Enabled

Magic's core technology, which has been used to build both Magic eService and Magic eMerchant, is well-suited to support the requirements of mBusiness. Its multi-tier architecture enables the separation of business logic from the Web content and client interface.

This means existing application logic does not need to be changed when defining the new mobile client interface because the content layer handles content that is appropriate for Web browsers and mobile devices, as well as traditional desktops. The appropriate content is dynamically merged according to the specifications of the various devices.

"As easily as Magic can merge with HTML or XML pages, it also can support WML pages for use on WAP devices," said Jack Dunietz, chief executive officer of Magic. "This represents a clear advantage over competing technologies, and enables us to easily offer our Web-based solutions with WAP support."

mBusiness with Magic Applications

Magic eService's mobile capabilities bring benefits to the customer who needs to check service status from the road, as well as the agent and manager who need to be alerted regarding service emergencies. The customer can inquire into the status of service requests, as well as search for a particular service call and view the correspondence relevant to that request.

Sales and service managers can receive real-time information via the mobile device. Predefined alerts can be sent by the Magic eService solution directly to the WAP-enabled device, informing managers of critical situations as defined by the enterprise's business rules.

Magic eMerchant is particularly well-suited to order processing with mobile devices because of its high level of personalization and other features, such as predefined order templates. These features are necessary to accommodate the small screen and scarce bandwidth limitations of today's mobile.

A WAP-enabled Magic eMerchant enables quick and efficient order modification, order confirmation and real-time order tracking from handheld devices.

Actual Implementations

One Magic-based mBusiness implementation in the apparel industry involves 260 franchise stores. Magic- and WAP-enabled, the company's salespersons and store managers are able to manage sales and inventory by store and/or product, acquire information on work-in-progress in factories and achieve greater precision in the movement and distribution of product between stores -- all while on the move.

In addition, the retail outlets can make sales requests, receive inventory information, make suggestions and provide shipping from the road. The bottom line is the elimination of costly indirect operations and paperwork, increased product turnover, faster delivery -- and increased profitability.

Another Magic-based mBusiness implementation is being used for schedule management in hospitals. This system manages the work schedules for doctors and nurses on the Web, allowing the staff to be easily connected via mobile phones from anywhere in the world. In addition, patients can check schedules via their cellular devices to ensure better service in the form of on-time appointments.

Yet another implementation is for a reservation system. This complex, Web-based system is accessed by mobile phones to ensure immediate notification and confirmation to all system users. A copy of Magic's latest White Paper on mBusiness titled, "Mobile eBusiness," which discusses these applications further, is available through the Magic Web site, http://www.magic-sw.com/mbusiness.

"The Magic core technology and Magic applications are leading the way with significant mBusiness deployments," added Dunietz. "As many companies worldwide plan migration to mBusiness, Magic will continue to provide the needed technology and support to ensure utmost productivity and fastest time-to-market."

About Magic Software

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, Irvine
Katharine Hanley (investor/public relations)
949/250-1718 ext. 220
khanley@magic-sw.com