Magic Software Wins Expansion Of Multi-million Dollar Project With Leading Package Delivery And Logistics Company

Mission Critical Enterprise Application Developed With eDeveloper And Deployed In 17 Countries Over The Last 4 Years

Thursday February 5, 5:02 am ET

IRVINE, Calif.--(BUSINESS WIRE)--Feb. 5, 2004-- Magic Software Enterprises (Nasdaq:MGIC - News), a leading provider of state-of-the-art business integration and development technology, announced today that it has won a major expansion of a project deal to provide continued development, maintenance and support to one of the world's leading package delivery and logistics companies, based in the U.S. The newest phase of the project is valued at $800,000, the majority of which will be recognized during the first half of 2004.

In this ongoing project, Magic Software is providing software licenses, and a team of architects and developers who are delivering ongoing customization and deployment support, enabling the customer to maintain and increase their competitive advantage. The new project scope includes the migration of existing enterprise application components to the latest release of Magic's eDeveloper, version 9.4, integration within an Oracle data management structure, and optimization of the client's business workflow.

"We are encouraged by the ongoing commitment we have received from one of our premier customers in North America," said Oren Inbar, CEO of Magic Software's North American subsidiary. "The expansion of this project reinforces our position as a leading provider of technology and solutions to the logistics industry."

The latest release of eDeveloper, version 9.4, (www.magicsoftware.com/edeveloper) offers many new features and enhancements that directly translate into tangible business benefits. These include powerful new integration facilities, service oriented architecture for composite application development, new standards-based messaging, advanced XML component functionality, enhanced functionality for the development of Web Services and improved support for interfacing with and deployment in J2EE and .NET architectures.

About Magic Software Enterprises
Magic Software Enterprises, a member of the Formula Group (Nasdaq:FORTY - News) develops, markets and supports software development, deployment and integration 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 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