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Magic Software Wins SAP's Quality Excellence Award for iBOLT Special Edition for SAP® Business One

January 24 , 2007

Or Yehuda, Israel; January 24, 2007- Magic Software Enterprises (Nasdaq: MGIC), a leading provider of state-of-the-art business integration and development technology, today announced that it has won the  SAP America's 2006 Software Solution Partner Quality Excellence Award. The Award was handed to Magic Software at the SAP Field Kickoff Meeting 2007 in Las Vegas attended by more than 6,000 SAP employees and business partners. Magic Software was recognized for the best overall achievement in quality and excellence among SAP® Business One software solution partners.

"Last year, we recognized Magic Software with the partner innovation award and this year they have built upon that achievement to earn the Solution Partner Quality Excellence Award for the overall quality and performance of iBOLT™

Special Edition," said Ralf Mehnert-Meland, director of Business Development for SAP Business One in the Americas. "More and more of our business partners are finding iBOLT Special Edition from Magic Software to be an excellent solution for extending SAP Business One capabilities to their customers."

SAP Business One delivers a single, integrated solution for small and mid-sized businesses that manages their critical operations, including sales, finance, purchasing, inventory and manufacturing.

iBOLT Special Edition is used by SAP business partners around the world to extend the capabilities of SAP Business One by integrating with existing systems and applications.  iBOLT Special Edition automates vital business processes such as communicating with trading partners, connecting to existing websites, consolidating charts of accounts, synchronizing data across multiples sites, handling service requests and orders over the Web, and more.

”This quality excellence award demonstrates that SAP recognizes the benefit enjoyed by more than 170 business partners around the world who use iBOLT Special Edition to extend SAP Business One’s capabilities,” said Amit Ben-Zvi, vice president of marketing and products for Magic Software. “We are honored that the SME team at SAP Americas has recognized our work and the quality of our solution with this award.”

About Magic Software Enterprises
Magic Software provides a Service Oriented Platform (Application Integration, Business Process Management and Composite Applications) to rapidly develop, change and deploy solutions integrated with existing and legacy systems. Magic Software enables enterprises to increase their agility and rapidly adapt to business changes, by aligning their IT with their business operations, accelerating the evolution to a Service Oriented Architecture through Application Integration and Business Process Management. Our customers develop and deploy applications that are rapidly customized and integrated with existing and legacy systems. Our products are built on 20 years of R&D and customer experience, leading the industry in Composite Application Development. Magic technology, products and professional services are available through a global network of subsidiaries, distributors and over 2500 Magic Solutions Partners in approximately 50 countries. The Company's EMEA HQ offices are located in the Netherlands, Pelmolen 17 3994XX Houten, 0031-30.6566266. The company's North American subsidiary is located at 23046 Avenida de la Carlota Suite 300 Laguna Hills, CA 92653, telephone (800) 345-6244, (949) 250-1718, fax (949) 250-7404.
http://www.magicsoftware.com/.

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

Company Contact:
Avigdor Luttinger
VP Marketing and Corporate Strategy
Magic Software Enterprises
(949) 250-1718 X299
Press_relations@magicsoftware.com

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