Friday October 19, 10:19 am Eastern Time

nextSource Names John Sculley to its Advisory Board

NEW YORK--(BUSINESS WIRE)--Oct. 19, 2001--nextSource Inc. -- a wholly owned subsidiary of Formula Systems LTD (Nasdaq: FORTY - news), and a leading provider of human capital solutions -- announced today that it has named John Sculley, Senior Partner at Signature21 and former CEO of both Pepsi and Apple Computer, as an addition to its Advisory Board.

In July 2001, nextSource partnered with Mr. Sculley's Manhattan-based business consulting firm, Signature21. Under the terms of the agreement, Signature21 will lead nextSource in the areas of brand building, and business development.

"Signature21 searches for players who can lead an industry sector through innovation and value-added services. After meeting the folks at nextSource, we feel that they have a strong chance to be a beacon in the HCM market," said Mr. Sculley. "The management team is committed, they have strong partners and, most importantly, their product is great. nextSource harbors all the ingredients to build a power brand."

As a leading provider for the HCM market, nextSource delivers web-based software and services that streamline the staffing process. nextSource's management has more than a century of expertise in designing, integrating, and servicing procurement and management solutions.

About nextSource
nextSource, headquartered in New York City is a subsidiary of Formula Systems LTD. The company designs, develops and implements a full life-cycle, web-based Talent Acquisition Management Software (TAMS) Solution that manages staffing and sourcing, procurement, accounting and reporting processes. This system allows the customer to manage complicated processes, such as vendor selection, evaluation, and management; accrual of spend; MWDVBE compliance; skill set and market-rate benchmarking.

Founded in 1985, Formula Systems LTD (Nasdaq: FORTY - news) has 3,960 employees, including 2,500 developers. It includes a dozen public companies and approximately two-dozen privately held companies. Its strategic and equity business partners include Ernst & Young, EDS, Informix, and Baan. Formula Systems LTD's revenue exceeded $400 million in 2000.

About Signature21
Signature21 is a Manhattan-based brand building consulting company, formed by former CEO of Apple Computer and Pepsi, John Sculley, and Dennis Lynch, founder of TechSmart and winner of the Ernst & Young Entrepreneur of the Year in e-Business. Signature21 looks to work with motivated professionals with value-added business models, specifically where they can offer their experience and insights in brand marketing, developing strategic partnerships, and creating innovative IT systems. Signature21 focuses on inflection points in the value chain of familiar industries where marketing ground rules can be changed and there is an opportunity to become a recognized name in its industry sector.

Contact:
nextSource Inc., New York
Marian Palionis, 212/736-5870
mpalionis@nextsource.com
or
Kate Rudgers, 212/736-5870
krudgers@nextsource.com