Tuesday January 8, 8:30 am Eastern Time

Magic Software Enterprises Reappoints David Assia, Company Co-founder, to Act as Its Chairman

OR YEHUDA, Israel--(BUSINESS WIRE)--January 8, 2002--Magic Software Enterprises (Nasdaq: MGIC - news), a leading provider of state-of-the-art technology and business solutions, announced today the reappointment of David Assia as its Chairman. Assia, a co-founder of Magic, served as the Chief Executive Officer of the Company from its inception in 1986 until September 1997. Assia held the position of Chairman of Magic from 1986 until 1999 and Vice Chairman of the Company since October 2000.

Assia, Vice-Chairman of the Israel Software Association, was a Managing Director of The Mashov Group between 1980 and 1986 and he currently serves on the board of directors of Aladdin Knowledge Systems (Nasdaq: ALDNF - news). He is also Chairman and CEO of Enformia. Assia holds a B.A. degree in Economics and Statistics, and an M.B.A., both from Tel Aviv University.

Assia replaces Dan Goldstein, founder and chairman of Formula Systems (1985) Ltd. (Nasdaq: FORTY - news), Israel's largest publicly traded information technology company and a majority shareholder of Magic. Goldstein will continue to serve as a member of the board of directors of the Company.

"David Assia provides invaluable insight and experience to the Board and management of Magic," commented Dan Goldstein. "His extensive knowledge of the Company and the industry as well as his experience will continue to add value to the Company and our shareholders."

About Magic Software Enterprises
Magic Software Enterprises, a member of the Formula Systems group, 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.magicsoftware.com.

Formula Systems 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.

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, 949/250-1718 ext. 220
khanley@magicsoftware.com