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Monday October 2, 12:55 pm Eastern Time
Magic Software Enterprises Appoints Dan Goldstein, Head of the Formula Group, to Act as Its Chairman
Company Also Announces Continuation of Stock BuyBack Plan
IRVINE, Calif.- (BUSINESS WIRE)- Magic Software Enterprises (Nasdaq:MGIC - news), a leading provider of state-of-the-art technology and business solutions, Monday announced the appointment of Dan Goldstein as its chairman.
Goldstein, also founder and chairman of Formula Systems Ltd. (Nasdaq: FORTY - news), Israel's largest publicly traded information technology company and a majority owner of Magic, will play an active role in Magic's strategy to become a major international e-commerce and customer relationship management (CRM) solutions provider. He replaces David Assia, who will assume the role of vice-chairman.
In addition, Magic announced its intention to continue buying back shares of its common stock on the open market.
Goldstein to Add Magic Touch
Magic, which began the evolution into a business solutions provider in late 1998, following Formula's investment in the company under Goldstein's direction, is poised to become a major international player in the e-commerce and CRM markets.
In 1999, it introduced its first business-to-business e-commerce solution, Magic eMerchantTM, which has since gone on to win several major technology awards and has been implemented in several multinational enterprises. More recently, Magic has introduced the first of several solutions expected to comprise a highly competitive and comprehensive suite of CRM products.
With Goldstein at the helm, Magic will now take the remaining important steps to re-engineer its infrastructure and business model to aggressively move to the next level of international prominence in the business solutions arena.
"I am extremely excited to have this opportunity to play a significant role in Magic's transition," said Goldstein. "My plan is to adapt my past experience in identifying and turning around promising technology companies to helping make Magic a more profitable company and an international business solutions powerhouse."
Goldstein, who has served as chairman and chief executive officer of Formula since January 1985, received his bachelor of arts degree in mathematics and computer sciences and his M.B.A. degree from Tel Aviv University. In 1998, BusinessWeek named him one of the most influential leaders of the Israeli technology movement.
Continuation of Stock BuyBack
Under Goldstein's leadership, Magic also plans to continue its previously announced stock buyback program. Over the last month, the company has repurchased more than 400,000 shares of its common stock on the open market.
Magic intends to continue buying back shares subject to, among other things, general market conditions and the market price of its ordinary shares, as well as the provisions of Israeli corporate law and U.S. securities law.
"Magic is a leading member of the Formula family of companies, and we believe its shares continue to represent an attractive investment for the company at its present market value," added Goldstein.
"The fact that Magic was able to survive the continued weakness in the application development tools market is a strong testament to the superiority of its underlying technology, while the early market acceptance of its e-commerce and CRM solutions bodes extremely well for the company's future."
About Formula Systems Ltd.
Formula Systems Ltd. is a global 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. In addition, the company manages a venture capital fund, which invests in early stage companies that develop software products for the international market. The company delivers its solutions in more than 50 countries to clients with complex IT service needs, including a number of FORTUNE 1000 companies.
About Magic Software Enterprises
Magic Software Enterprises, a member of the Formula Group (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 Ave., Irvine, Calif., 92614, telephone: 949/250-1718, fax: 949/250-7404, http://www.magic-sw.com.
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
Katharine Hanley, 949/250-1718, ext. 220
khanley@magic-sw.com
 
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