Wednesday July 2, 9:02 am ET

Magic Software Joins Growing EAI Industry Consortium

IRVINE, Calif.--(BUSINESS WIRE)--July 2, 2003-- Magic Software Enterprises (Nasdaq:MGIC - News), a leading provider of state-of-the-art integration and development technology, today announced it has joined the fast-growing EAI Industry Consortium (EAIIC), an international non-profit global advocacy group promoting the enterprise application integration industry dedicated to sponsoring research, education, best practices, standards & guidelines and articulating the benefits of this business-driven approach.

"We are delighted to welcome on board Magic Software as the newest member in the consortium and we look forward to working with them on the consortium's initiatives," said Michael Kuhbock, chairman of EAIIC. "We are sure that this will be an excellent knowledge sharing opportunity for Magic Software where they can leverage access to the most up-to-date information and technology in the area of enterprise application integration and business process management, and have the benefit of networking with end users and vendors who have solid experience in this area."

Magic Software develops and markets the IBOLT Integration Suite, an application integration and development environment (www.magicsoftware.com/ibolt) with a strong business rules underpinning that is designed to enable mid-sized organizations to affordably and quickly integrate critical business processes.

eDeveloper (www.magicsoftware.com/edeveloper), the component toolkit within iBOLT, defines the execution logic of business process components to form integrated composite applications. In addition, with inherent built in support for Web Services, eDeveloper enables users to create Web Services for others to use or directly access from the iBOLT environment.

"Magic Software has been providing organizations worldwide with technology that provides application integration and interoperability, and support for the rapid development and management of business processes," said David Leichner, vice president of Worldwide Marketing. "We are excited about bringing this experience to the EAIIC while benefiting from Consortium research forums, closer vendor involvement and joint working group committees."

About the EAI Industry Consortium
The EAI Industry Consortium is a non-profit global advocacy group developed to promote EAI and all related integration technologies through sponsored research, the establishment of standards and guidelines, best practices, and the articulation of EAI's strategic and measurable benefits.

Among the sectors represented in the EAIIC membership are independent software vendors (ISVs), hardware vendors, system integrators, academic institutions, end user corporations, non-profit institutions and individual members, as well as various industry leaders. Information on the EAI Industry Consortium is available at www.eaiindustry.org or by sending e-mail to information@eaiindustry.org.

About Magic Software Enterprises
Magic Software Enterprises, a member of the Formula Group (Nasdaq:FORTY - News) develops, markets and supports software development, deployment and integration 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 17310 Redhill Avenue #270, Irvine, CA 92614-5637, telephone 800/345-6244, 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 Ltd.
David Leichner, 949/250-1718 ext. 299
davidl@magicsoftware.com