Thursday August 31, 7:01 am Eastern Time

ForSoft Awarded $2 Million Contract From Clal Insurance for a Comprehensive Life Insurance System

HERZLIYA, Israel, Aug. 31 /PRNewswire/ -- ForSoft Ltd. (Nasdaq: FORS - news), a leading provider of large scale Information Technology (IT) solutions and services, announced today that it was awarded a contract totaling $2 million over 2 years from Clal Insurance Group, a leader in the Israeli insurance industry, for a comprehensive life insurance system.

Under the terms of the contract, ForSoft Insurance Solutions, a division of ForSoft, will supply its Life Insurance System (ALIS) in two stages. In the first stage, Clal Insurance will receive a license for a basic system. In the second stage ALIS will be customized to Clal Insurance's specific requirements, as a joint project of Clal Insurance and ForSoft. The advance web enabled solution will serve as the Intranet data infrastructure for Clal's new insurance system.

Mr. Ehud Fleisher, CIO of Clal Insurance Group said, "I am very excited about ForSoft Insurance Solution's new product for life insurance system. The new ALIS system fits well with our commitment for better services to our clients, and launching new insurance products in the near future."

About ALIS

ALIS, the life insurance system, has been developed by ForSoft Insurance Solutions, a division of ForSoft Ltd. ALIS is an advanced, comprehensive administration system for life, pension and investments for both group and individual products. The system supports the full policy lifecycle for a wide range of insurance products including unit linked and stakeholder products. The system is highly flexibile enabling it to implement new insurance products, at low operational costs. The system is web enabled.

About Clal Insurance Group

Clal Insurance Enterprises Holding Ltd. (Clal Insurance) is one of Israel's two leading insurance groups, with a market share of 23% and annual premium revenue of approximately $1.2 billion. Clal Insurance, through its subsidiaries, specializes in providing non-life insurance, life insurance, and financial services, mainly through a network of agents. Clal insurance is traded on the Tel-Aviv Stock Exchange. For more information about the Clal Group please visit http://www.clal.co.il.

About ForSoft

ForSoft is a leading provider of large scale Information Technology solutions and services for large organizations in growing vertical markets. The company focuses on e-Business driven IT solutions for the Telecom, Banking, Insurance, Retail and Travel markets. The company integrates Internet & e-Commerce technology across mission critical legacy systems, utilizing its over 18 years accumulated practical full service experience in system integration, software development projects, outsourcing & professional services. For further information about ForSoft please visit our website http://www.forsoft.co.il.

The Formula Group

ForSoft Ltd. is a member of the Formula Group (Nasdaq: FORTY - news). The Formula Group is an Information Technology company principally engaged through its subsidiaries and affiliates, in providing software consulting services, developing property software products, and providing computer-based business solutions. For further information about the Formula Group please visit http://www.formula.co.il.

Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the current intent, belief or expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements, including those regarding the ability to obtain new contracts and future profitability, involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties include our ability to keep pace with rapidly changing technology, ability to recruit and retain IT personnel, dependence on large contracts and fixed price contracts, dependence on key personnel, conditional participation in government programs that provide tax benefits and other items identified in the Company's registration statements filed with the Securities and Exchange Commission.