Sapiens Awarded Further Contract with Liverpool Victoria

Migration of New Block of Policies Expands Sapiens' Closed Books INSIGHT Functionality and Products Profile

Monday November 10, 4:24 am ET

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Nov. 10, 2003-- Sapiens International Corporation N.V. (Nasdaq and TASE:SPNS) today announced a broadening of their relationship with Liverpool Victoria, the UK's largest friendly society (a), with the award of a further contract to migrate another 400,000 of the company's unit-linked policies onto its Closed Books INSIGHT solution.

Closed Books INSIGHT has assisted Liverpool Victoria in restructuring their business processes and reducing their cost base. Sapiens migrated over 3.5 million of Liverpool Victoria's policies onto Closed Books INSIGHT in 2002. The further migration, planned to be achieved within a 6-month timescale, will enable Liverpool Victoria to build on the benefits already realised since moving their older policies onto Closed Books INSIGHT.

Whilst Closed Books INSIGHT is already rich in process functionality, the migration of this additional book will broaden the solution's capabilities, enabling it to process traditional with-profits products while adding new products, such as: unitised with-profits, unit-linked, pensions and life products.

Ian Cordwell, Liverpool Victoria's Group Operations Director, commented: "The experience of implementing Closed Books INSIGHT and the benefits we've since realised aided our decision to migrate further policies onto the same solution. Closed Books INSIGHT has helped us to achieve efficient and low administration costs."

Yair Spitzer, managing director of Sapiens UK, added: "Our speed of implementation beats anything else in the market and is proving to be irresistible to our clients. We are so confident in our ability to meet client needs that we will recommend our clients to enter into fixed price contracts and remove their normal price and overrun risks. As we have shown at Liverpool Victoria, not only is Closed Books INSIGHT a low cost platform to run but it is also highly scalable."

David Ofek, Executive Vice President Business Development of Sapiens International added: "The changing economics and regulation pose a challenge on Life & Pensions carriers and outsourcing providers alike, while dealing with growing numbers of books of policies that are no longer sold. Sapiens has delivered a proven solution that allows the carrier to reduce dramatically the basic cost of maintaining and administering the closed books of business, making it a positive asset. This is a new business avenue for companies, already at high interest level in the UK and growing interest in Europe, primarily in Germany and France."

About Sapiens
Sapiens International Corporation (Nasdaq and TASE:SPNS), a member of the Formula Group of companies, is a leading global provider of proven IT solutions that modernize business processes and enable insurance organizations to adapt quickly to change. Sapiens' innovative solutions are widely recognized for their ability to cost-effectively align IT with the business demands for speed, flexibility and efficiency. Sapiens operates through its subsidiaries in North America, United Kingdom, EMEA and Asia Pacific and has partnerships with market leaders such as IBM and EDS. Sapiens' clients include Allianz Group, AXA, Liverpool Victoria, Menora, Norwich Union, OneBeacon, Principal Financial, Prudential, Abbey National, ING, Occidental Fire & Casualty, among others. For more information, please visit http://www.sapiens.com.

(a) Association of Friendly Societies Yearbook 2003-2004, funds under management. Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new product and service development, the effect of the Company's accounting policies and other risk factors detailed in the Company's SEC filings.

Contact:
Padilla Speer Beardsley
Rebecca Green, 212-752-8338
rgreen@psbpr.com
or
Citigate Technology (UK)
James Read, +44 (0)1604 232 223
james.read@citigatetechnology.com