Magic Software Announces New Contract to Computerize Gas Distribution Systems for Paz Gaz With eDeveloper

Initial Deal Valued at Around $500K

Monday September 15, 12:08 pm ET

IRVINE, Calif.--(BUSINESS WIRE)--Sept. 15, 2003--Magic Software Enterprises (NASDAQ: MGIC - News), a leading provider of state-of-the-art development and integration technology, announced today that it has won a new contract to computerize the gas distribution systems for Paz Gaz, the largest gas company in Israel. The initial value of the deal is around $500K.

In conjunction with long-term partner, Bashan Software Systems, which specializes in the gas sector, Magic will provide Paz Gaz with an automated eDeveloper-based system for distribution and agent management. The solution will handle the distribution of gas to customers across the country. It manages the entire process from the point of order, through delivery and invoicing.

The distribution solution will provide services for eight regional offices and around one hundred and fifty users, and will integrate with existing Paz Gaz systems.

"This win is an excellent example of how we join forces with our partners, such as Bashan Software, to bring quality solutions to leading companies such as Paz Gaz," said Eran Kaplan, Managing Director of Magic Software's Asia/Pacific operation. "Our partners provide excellent domain expertise, Magic provides project management and technical expertise, and the customer receives the solution they need to maximize their business efficiencies."

About Magic Software Enterprises
Magic Software Enterprises, a subsidiary of Formula Systems (Nasdaq:FORTY - News), develops, markets and supports software development, deployment (www.magicsoftware.com/edeveloper) and integration technology (www.magicsoftware.com/ibolt) 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 17310 Redhill Avenue #270, Irvine, CA 92614-5637, telephone 800-345-6244, 949-250-1718, fax 949-250-7404, http://www.magicsoftware.com/.

Formula Systems is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and producing computer-based 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 Ltd.
David Leichner, 949-250-1718, ext. 299
davidl@magicsoftware.com