Magic Software Named to SD Times 100 for "Innovative Leadership in the Software Development Industry" for the iBOLT Integration Suite

Monday May 17, 6:00 am ET

IRVINE, Calif--(BUSINESS WIRE)--May 17, 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 been recognized by Software Development Times for innovative leadership, through its inclusion in the "SD Times 100" (www.sdtimes.com/news/102/special1.htm). Magic Software was also named as one of the influencers and leaders in the category of modeling and design. The SD Times 100 recognizes the leaders and innovators of the software development industry.

"Each year, the editors of BZ Media's SD Times 100 look for companies and influencers which set the technical and market leadership for the software development industry," said Alan Zeichick, editor-in-chief of SD Times. "When choosing the 2004 SD Times 100, we carefully considered each organization's offerings and reputation with developers, as well as the attention and conversation we've heard around the company and its products and technologies, as a sign of leadership within the industry."

Zeichick noted that Magic Software has been named to the list because of its innovative new iBOLT Integration Suite that "merges modeling, portals, and business process management."

"Magic Software is honored by this industry recognition from the editors at SD Times," said Menachem Hasfari, CEO of Magic Software Enterprises. "Inclusion in the SD Times 100 once again confirms iBOLT's growing position as a leading business integration framework, which enables companies to align IT and business goals to realize more rapid return on investments with reduced costs and optimized business processes."

About SD Times
Launched in February 2000, BZ Media's SD Times is the newspaper of record for the software-development industry. SD Times is published twice monthly in identical print and digital editions, and can also be read online at www.sdtimes.com.

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
Vice President, Worldwide Marketing
davidl@magicsoftware.com