Sapiens successfully completes delivery of a second project with Liverpool Victoria

Migration of additional book of policies expands Sapiens Closed Books INSIGHT™ solution functionality and products profile

March 14, 2005

Research Triangle Park, N.C. — March 14, 2005 — Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS) today announced the successful completion of a contract to migrate a further 400,000 of Liverpool Victoria’s unitlinked life and pension policies onto its Closed Books INSIGHT™ platform.

Closed Books INSIGHT™ has enabled Liverpool Victoria to restructure their business processes and reduce their operational cost base dramatically since Sapiens migrated 3.5 million of Liverpool Victoria’s policies onto Closed Books INSIGHT™ in 2002. This further migration will enable Liverpool Victoria to build on the substantial benefits already realised since moving their older portfolios onto Closed Books INSIGHT™.

The migration of this new book has broadened Closed Books INSIGHT’s capabilities, now administering a range of unitised with-profits and unit-linked pensions and life products as well as traditional with-profits products.

Kevin Durkan, Liverpool Victoria’s Group Director - Operations, commented:“The experience of implementing Closed Books INSIGHT™ and the benefits we’ve since realised made it an obvious decision to migrate further policies on to the same platform. The Sapiens Closed Books INSIGHT™ solution has helped us to achieve very efficient administration and customer service at a much lower cost than before.”

Kali Bagary, Managing Director of Sapiens UK, added:“Our low cost and speed of implementation for new functionality, products and data migration is becoming enviable in the market. Our INSIGHT suite of solutions has been developed to support standardised business processes, the foundation for low cost and scalable platforms in L&P administration. We are so confident in our ability to meet client needs that we are able to offer fixed price / duration contracts, removing any overrun risks. As we have shown at Liverpool Victoria, not only is Closed Books INSIGHT™ a low cost platform to run, but it is highly scalable and easily configurable for additional products.”

About Sapiens
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a member of Formula Group (NASDAQ: FORTY and TASE: FORT), is a leading global provider of proven IT solutions that modernise business processes and enable insurance organisations and other leading companies to adapt quickly to change. Sapiens’ innovative solutions are widely recognised for their ability to cost-effectively align IT with the business demands for speed, flexibility and efficiency. Sapiens operates through its wholly owned subsidiaries in the United Kingdom, North America, EMEA and Asia Pacific. The company has partnerships with market leaders such as IBM and EDS. In addition to Liverpool Victoria, Sapiens' UK clients include AXA, Prudential and Abbey National.

For more information, please visit www.sapiens.com
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contact
Christiana Odia at Christiana_Odia@Sapiens.co.uk

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.