Tuesday October 16, 12:29 pm Eastern Time

Formula Systems LTD Announces Name Change of ForSoft Inc. to nextSource Inc.

NEW YORK--(BUSINESS WIRE)--Oct. 16, 2001--ForSoft Inc. - a wholly owned subsidiary of Formula Systems LTD (Nasdaq: FORTY - news), and a leading provider of Human Capital Management Solutions - announced today that it has officially changed its name from ForSoft Inc. to nextSource Inc.

With a keen sense towards the future economy, nextSource has upgraded and advanced its central offering, a Human Capital Management (HCM) Solution. The HCM Solution is a feature-rich solution that provides a secure, web-based, customizable platform. With no up-front investment for the customer, the customer quickly realizes improvements in staffing intervals and the quality of candidates while more effectively managing and controlling expenditures related to the acquisition of human capital. Through the use of this solution, a customer's HR organization will increase the amount of time available to focus its activities on more value-added tasks.

nextSource is also offering an opportunity for agencies to be at the forefront of the next evolution in the staffing industry. Companies increasingly look for ways to consolidate and cut costs. Becoming a member of our Value Added Reseller (VAR) Program will afford agencies the opportunity to offer an invaluable resource to current clients.

As an additional offering, nextSource has created the Multiple Listing Staffing Association (MLSA). This is the first industry-wide network of independent staffing agencies, which will work together, under the nextSource umbrella, to address the challenges presented by the constantly changing landscape of the staffing industry.

About nextSource
nextSource, headquartered in New York City is a subsidiary of Formula Systems LTD. The company designs, develops and implements a full life-cycle, web-based solution that manages staffing and sourcing, procurement, accounting and reporting processes. This system allows the customer to manage complicated processes, such as vendor selection, evaluation, and management; accrual of spend; MWDVBE compliance; skill set and market-rate benchmarking.

Founded in 1981, Formula Systems LTD (Nasdaq: FORTY - news) has more than 4,000 employees, including 2,500 developers. It includes a dozen public companies and approximately two dozen privately held companies. Its strategic and equity business partners include Ernst & Young, EDS, Informix, and Baan. Formula Systems LTD's revenue exceeded $400 million in 2000.

Contact:
nextSource Inc., New York
Marian Palionis or Kate Rudgers, 212/736-5870
mpalionis@nextsource.com
krudgers@nextsource.com