Sapiens Continues Trend of Improved Results

Sapiens Announces Q3 2006 Results – Strong Move Towards Profitability with Further Improved Revenues and a 61% Decrease in Net Loss

November 19, 2006

Cary, N.C. – November 19, 2006 - Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS) today announced its financial results for the third quarter of 2006, ended September 30, 2006. The Company showed continued improved results and a strong commitment to achieve operational turnaround with sustained profitability and strong growth. 

Revenues increased 14% to $11.3 million, up from $9.9 million in the third quarter of 2005. Revenues totaled $33.4 million for the first nine months of 2006, up from $29.6 million for the first nine months of 2005.

Operating Loss, including a $0.36 million write-off due to bad debt, decreased 77% to $0.21 million, down from $0.94 million in the third quarter of 2005. Net of the write-off, the company showed an Operating Profit of $0.15 million for the third quarter.  Operating Loss for the first nine months of 2006, decreased to $0.91 million, down from $4.6 million for the first nine months of 2005. 

Net Loss significantly decreased 61% to $0.62 million in the quarter, from $1.6 million in the third quarter of 2005.  Net Loss for the first nine months of 2006 decreased to $2.6 million, down from $5.9 million for the first nine months of 2005.

Roni Al-Dor, President and CEO, commented "Our shareholders now see the first signs of our intended turnaround. Our two consecutive quarters of significant operational improvement are very encouraging and a great start. We have the repeat customers, the products, the technological edge and the will. We have planted the seeds for our future." 

Click here to download Sapiens Q3 06 Results

About Sapiens International
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 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, the United Kingdom, EMEA and Asia Pacific, and has partnerships with market leaders such as IBM and EDS. Sapiens' clients include AXA, Liverpool Victoria, Norwich Union, OneBeacon, Principal Financial Group, Prudential, ING, and Occidental Fire & Casualty among others.

For more information about Sapiens, 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, specific system configurations and software needs of individual customers and other risk factors detailed in the Company's SEC filings.

FOR ADDITIONAL INFORMATION

Elior Brin
Chief Financial Officer
Sapiens International
+972-8-938-2934
IR.Sapiens@sapiens.com

Roni Al-Dor
Chief Executive Officer
Sapiens International
Tel: +972-8-938-2934
IR.Sapiens@sapiens.com