Monday August 27, 9:17 am Eastern Time

Magic Software Enterprises' Americas Subsidiary Introduces Magic CRM, the First Affordable Solution to Provide Companies a Single, Integrated View of Their Customers

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 27, 2001-- Magic Americas, Magic Software Enterprises' (Nasdaq:MGIC - news), North American subsidiary, introduced today Magic CRM(TM) powered by Adapt(TM) ("Magic CRM"). Magic CRM is the first affordable solution on the market to allow mid-sized companies a single integrated view of their customers.

In addition to modules for targeted mass marketing, advanced sales automation, and complete customer service, Magic CRM also includes pre-built, real-time accounting/ERP interfaces to reduce training and implementation expenses, and to allow companies to exchange information across their entire enterprises in support of increased sales effectiveness and customer loyalty.

Magic CRM
While most CRM approaches today require companies to assemble CRM solutions in pieces, Magic CRM offers all of the key components of business management (not just CRM) in a single module that can be acquired inexpensively and implemented quickly. It includes the following:

• Marketing Campaign Management -- Magic CRM enables marketing professionals to manage customized marketing campaigns, link account responses and opportunities resulting from each campaign, track budgets and actual expenses per campaign, and generate revenue forecasts and real-time profitability per campaign. In addition, a fulfillment system helps ensure timely delivery of requested or promised collateral.
  
  
• Sales Opportunity Management -- Magic CRM enables salespersons to analyze competitors and buying issues to help project customer and market trends, and to monitor the details and progress of pending opportunities as they relate to the selling process. In addition, Magic CRM can generate sales expenses, perform win/loss analyses, and execute graphical pipeline reports in real time based upon user-defined metrics.
  
  
• Complete Customer Service Management -- Magic CRM also includes advanced tools for establishing account-specific service-level agreements, tracking service tickets, and managing warranty programs and renewals. In addition, its user-defined routing and escalation engine allows tasks to be delivered to those persons most qualified to respond.
  
  
• Accounting/ERP Integration -- And Magic CRM offers pre-built, real-time interfaces with the leading mid-range accounting/ERP programs. What this means is that companies can create sales orders in their accounting systems, view shipments, track invoices for collection, and inspect other customer-related information without ever exiting the system. The result is a true customer- and sales-centric organization.

"The purpose of Magic CRM is not to have your sales force make more calls or your marketing personnel turn out more campaigns, but to have both groups perform better," said Steven P. Nohe, Sr., chief executive officer of Magic Americas. "By giving sales and marketing professionals access to integrated, cross-departmental customer information, companies are able to efficiently target their sales and marketing efforts directly at the needs of each individual customer. This means greater sales effectiveness and increased customer loyalty -- the by-products of which are higher revenues and improved margins."

Magic will be demonstrating Magic CRM in its Booth no. 860 at the DCI CRM Expo opening Wednesday, August 29, 2001, at the Jacob Javits Convention Center in New York City. The company also is making available a free demonstration flash CD-ROM of the product to interested parties who wish to preview Magic CRM's features. Copies may be obtained either in person at the Magic Booth or through the Magic website at www.magicsoftware.com/magiccrm. Magic CRM is available only through Magic Americas.

About Magic Software Enterprises
Magic Software Enterprises, a member of the Formula Group (Nasdaq:FORTY - news), develops, markets and supports software development and deployment technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems.

Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries. The company's North American subsidiary is located at 1642 Kaiser Avenue, Irvine, Calif., 92614, telephone 949/250-1718, fax 949/250-7404, http://www.magicsoftware.com.

The Formula Group is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and producing computer-based solutions.

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.

Contact:
Magic Software Enterprises, Irvine
Katharine Hanley, 949/250-1718 ext. 220
khanley@magicsoftware.com