Monday May 6, 8:34 am Eastern Time

nextSource Announces Launch of 4th Generation Vendor Management Software

NEW YORK--(BUSINESS WIRE)--May 6, 2002--nextSource Inc. - a wholly owned subsidiary of Formula Systems (1985) LTD (Nasdaq: FORTY - news), and a leading provider of human capital management solutions - announced the release of Version 4.0 of their flagship ASP software, the nextSource Talent Acquisition Management Solution(TM) (TAMS).

John Sculley, nextSource Advisory Board Chairman said, "The hottest sector of the human capital market will be vendor management, with prospects for continued growth of software and services. The high quality of the nextSource software offering coupled with our management's domain experience, makes nextSource the one to watch in this high growth space. I am very excited about this company."

nextSource, the first in the industry to reach a 4th generation of their software, takes vendor management to the next level with its robust solution. Some features are:

Customers are able to now post and release all types of openings -contingent, projects, temporary (clerical/industrial) and direct (permanent).

TAMS now has a user-customized Dashboard which allows the user to select the functionality they often use, and allows one-click access to all application functions. As part of the reporting capabilities, nextSource has added professional engagement evaluations and enhanced vendor evaluations to help companies identify strengths and abilities in both their contingent workers and current vendors. TAMS will now connect to The People Blue Book(TM), allowing customers to have virtual access to market rates.

nextSource believes that over fifty percent (50%) of corporate spend is allotted to "human capital assets". Employing a staffing management service will make organizations both more effective and more profitable. nextSource delivers a suite of software and services through a web-based application and has extensive expertise in developing, implementing and servicing staffing management solutions. nextSource's implementation team works with each client company's Procurement, Human Resources, and Financial organizations to adapt their solution to the client's current processes.

For more information on TAMS and other nextSource offerings, please check out www.nextsource.com or email your inquiry to info@nextsource.com.

About nextSource
nextSource, headquartered in New York City is a subsidiary of Formula Systems LTD. The company designs, develops and implements web-based, high quality, innovative Human Capital Management Solutions. These offerings allow customers to manage the business processes of job posting and fulfillment, vendor selection, evaluation, and management; accrual of spend; MWDVBE compliance; skill set and market-rate benchmarking. A Microsoft Certified Partner, nextSource has patents pending on both its Talent Acquisition Management Solution(TM) (TAMS) and The People Blue Book.

Founded in 1985, Formula Systems LTD (Nasdaq: FORTY - news) has over 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, New York
Kate Rudgers, 212-736-5870 ext. 317
krudgers@nextsource.com
or
Marian Palionis, mpalionis@nextsource.com