Sapiens Announces Q1 2008 Results

Company Continues to Improve Performance for the Sixth Consecutive Quarter

May 20, 2008

Cary, N.C. – May 20, 2008 - Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a member of the Emblaze/Formula Group (LSE:BLZ.L) (NASDAQ: FORTY and TASE: FORT), announces today its results of operations for the first quarter of 2008.

Highlights for Q1 2008

• $423,000 Operating Profit, a significant increase of 41% from the fourth quarter of 2007
• Sixth consecutive quarter of Operating Profit
• Approximately $400,000 Cash Flow from Operations, following upon the positive Cash Flow from Operations in 2007
• Revenue of $10.5 million, a 3.1% increase from the fourth quarter of 2007
• Signed a major agreement, for $1 million, in Japan
• Increased pipeline of potential deals with major customers
• Repurchase of Debentures in Q1 2008 of $2.1 million
• The increase in Financial Expenses is due to the devaluation of the US Dollar vs. the New Israeli Shekel

U.S. GAAP

• Operating Profit of $423,000, a 184% increase from the first quarter of 2007 and a significant increase of 41% from the fourth quarter of 2007

Non-GAAP

• Operating Profit of $522,000, a turn around from the Operating Loss of $2,000 in the First Quarter of 2007, and a significant increase  of 35% from $386,000 in the Fourth Quarter of 2007

U.S. GAAP results include amortization of capitalized software developments, capitalization of software development costs, and stock-based compensation expenses.

Reconciliation between U.S. GAAP and Non-GAAP results is summarized in the following table.  For a complete reconciliation, please refer to the tables at the end of this release.

Roni Al-Dor, President and CEO, commented "We report our sixth consecutive quarter of operating profit. We also report approximately $400,000 positive cash flow from operations for the first quarter of 2008.  We are now benefitting from our past activities to increase efficiencies at each of our subsidiaries. We have stabilized our ship and are sailing forward. We have increased our lead generation and face several promising opportunities that we expect will become signed agreement in 2008.  Due to the devaluation of the US Dollar against the New Israeli Shekel, we had an increase in finance expenses which created an increase in our Net Loss."

Mr. Al-Dor added, "We thank our customers, our investors and our employees for the good news we report today. We believe that our positive trend will continue and that we will have more good news to report to you in the future."

Comment Regarding Non-GAAP
Sapiens' management believes that the presentation of non-GAAP measures can enhance the understanding of the company’s ongoing economic performance, and provides useful information to investors regarding financial and business trends relating to the company’s financial condition and results of operations. Sapiens therefore uses internally the non-GAAP information to evaluate and manage the Company’s operations.

This non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Sapiens believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Sapiens' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Sapiens' results of operations in conjunction with the corresponding GAAP measures.

Please refer to the Reconciliation of GAAP to Non-GAAP Results on the last page of the below link.

Click here to download Sapiens Q1 08 Results

About Sapiens International
Sapiens International Corporation N.V. (Nasdaq and TASE: SPNS), a member of Formula Group (Nasdaq: FORTY  and TASE: FORT), which is a member of the Emblaze Group (LSE: BLZ.L) 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, ING, Liverpool Victoria, Menora Mivtachim, Norwich Union, Occidental Fire & Casualty, OneBeacon, Principal Financial Group, Santam and Texas Farm Bureau 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 state-ments that are dependent on certain risks and uncertainties, including such factors, among others, as market accep-tance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new prod-uct 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

Roni Giladi
Chief Financial Officer
Sapiens International
Tel: +972-8-938-2721
E-mail: IR.Sapiens@sapiens.com

Roni Al-Dor
Chief Executive Officer
Sapiens International
Tel: +972-8-938-2721
E-mail: IR.Sapiens@sapiens.com