Thursday March 8, 1:03 pm Eastern Time

Formula Systems Ltd. Announces Investment of $10 Million in Sapiens International Corporation N.V.

HERZLIYA, Israel--(BUSINESS WIRE)--March 1, 2001--Formula Systems Ltd., ("Formula") (Nasdaq: FORTY - news)), a leading provider of information technology products, solutions and services, announced today that on March 7, 2001, pursuant to a Share Purchase Agreement, between Formula and Sapiens International Corporation N.V. (Nasdaq: SPNS - news; "Sapiens"), and following approval of Sapiens' shareholders of the Agreement Formula, through a wholly owned subsidiary, has completed a $10 million investment in convertible preferred shares of Sapiens representing approximately 20% of Sapiens' outstanding share capital on an as converted basis.

Under the Agreement, Formula has also been granted an option to invest an additional $10 million in the same terms as set forth in the initial investment, subject to certain adjustments. The option is exercisable until December 25, 2003. If Formula exercises such option in full, it may hold approximately 31% of Sapiens' outstanding share capital, on a fully diluted basis.

About Formula
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.

About Sapiens
Sapiens International (Nasdaq: SPNS - news) is a leading provider of large-scale, customized, business-critical software solutions which are developed and delivered in rapid time-to-market. Through its e-Business Integration, Migration, Outsourcing and IT Services business lines, Sapiens enables its customers to capitalize on their IT assets in the transition to e-business. Sapiens' strategic solutions integrate its proven rapid application development (RAD) methodology, efficient rule-based object technology, and extensive consulting expertise. Applying proven technologies, including its flagship eMerge(TM) offering, Sapiens ensures a rapid return-on-investment and responsiveness to change. In addition, Sapiens provides its customers in the insurance/finance and supply chain markets with field-tested, reusable, business components, to expedite deployment of certain applications, as well as dedicated practice groups, which provide business domain expertise.

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: market demand for the Company's products, dependence on strategic partners, integration of new business, successful implementation of the Company's products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in the Company's SEC filings.