Formula Systems Ltd., to Sell 666,666 Ordinary Shares of Magic in Follow-on Offering

Magic Software Enterprises (NasdaqNM:MGIC - news), a subsidiary of Formula Systems Ltd. (NasdaqNM:FORTY - news), announced that it has filed a registration statement with the Securities and Exchange Commission for a follow-on offering of 2 million of its ordinary shares. Formula Systems Ltd., a leading provider of information technology products and services, today announced that it will sell one-third of the two million shares being offered by its Magic Software Enterprises subsidiary.

On Thursday, January 20th, Magic Software Enterprises filed the registration statement with the U.S. Securities and Exchange Commission for the offering of the two million ordinary shares. Magic Software Enterprises will offer 1.33 million ordinary shares, while Formula will offer 666,666 ordinary shares. Formula values the offering at $150 million at current prices. At this stage, the capital gains for Formula cannot be estimated.

Formula Systems Ltd., is a global information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions.

This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company's products, successful implementation of the company's products, economic and competitive factors, international market conditions, technological developments, the ability to finance operations and other factors which are detailed in the company's SEC filings.