Israel's Magic Software to enter Chinese market

Monday June 28, 7:55 am ET

TEL AVIV, June 28 (Reuters) - Israel's Magic Software Enterprises (NasdaqNM:MGIC - News; Tel Aviv:MGIC.TA - News) has signed a distribution agreement with conglomerate Sun Wah Group for its products to be marketed in China, the companies said on Monday.

They said in a joint statement that Sun Wah would use its large presence in China to market and support Magic's products there.

Financial details were not disclosed.

"Magic Software has taken a strategic decision to enter the Chinese market," David Assia, chairman and founder of Magic Software, said in the statement.

"The agreement with Sun Wah is a first serious step in that direction. We have always viewed the Asia Pacific region as a strategic market for Magic Software and we intend to replicate in China our success in the Japanese market."

Magic Software is a subsidiary of Formula Systems Ltd. (Tel Aviv:FORT.TA - News; NasdaqNM:FORTY - News).

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