Sapiens Announces Agreement with F.I.D. Holdings and Israel Discount Bank

Thursday April 8, 9:00 am ET

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--April 8, 2004--Sapiens International Corporation N.V (Nasdaq:SPNS - News) and (TASE:SPNS) today that it has entered into an agreement (the "Agreement") with F.I.D. Holdings Ltd. ("FID"), a company controlled by First International Mezzanine Investors Ltd. ("FIMI"), and Israel Discount Bank Ltd. ("IDB," and together with FID, the "Investors") for the modification of an existing put option, whereby Sapiens has agreed to the payment of cash, the issuance of common shares of the Company and of warrants to purchase additional common shares.

In April 2000, FID and IDB invested $15 million in eZoneXchange.com, a Sapiens subsidiary, and were granted the right to require Sapiens to repurchase their shares in the subsidiary beginning May 2004 in exchange for both cash and Sapiens shares. In February 2001, Sapiens agreed to a partial exercise of the put option resulting in a payment to the Investors of $4.5 million.

The new Agreement is intended to restructure the remaining portion of the put option by extending the time Sapiens has for fulfilling the terms of the put option. Sapiens has agreed to issue the Investors, in a private placement, 750,000 common shares and warrants to purchase 350,000 more common shares at an exercise price of $4.00 per share. In addition, Sapiens will pay the Investors in two annual installments a total of $8.6 million plus interest at 7.5% a year by May 1, 2005.

About Sapiens
Sapiens International Corporation (Nasdaq and TASE:SPNS), a member of the Formula Group of companies, is a leading global provider of proven IT solutions that modernize business processes and enable insurance organizations to adapt quickly to change. Sapiens' innovative solutions are widely recognized for their ability to cost-effectively align IT with the business demands for speed, flexibility and efficiency. Sapiens operates through its subsidiaries in North America, United Kingdom, EMEA and Asia Pacific and has partnerships with market leaders such as IBM and EDS. Sapiens' clients include Allianz Group, AXA, Liverpool Victoria, Menora, Norwich Union, OneBeacon, Principal Financial, Prudential, Abbey National, ING and Occidental Fire & Casualty, among others.

For more information, please visit http://www.sapiens.com.

Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new product and service development, the effect of the company's accounting policies and other risk factors detailed in the Company's SEC filings.

Contact:
Padilla Speer Beardsley
Rachel Schulman, Tel: +1-212-752-8338
e-Mail: rschulman@psbpr.com