Magic Software Joins Forces with Norway’s Leading Integrator

Faster integration will leverage more productivity from current IT systems

September 14, 2005

Houten, The Netherlands (September 14, 2005) - Magic Software Enterprises (NASDAQ: MGIC), a leading provider of state-of-the-art development and integration technology, announced today that it has signed an agreement with WM Data, one of Norway’s leading system integrators, according to which WM Data will employ Magic’s iBOLT business integration suite for its integration projects.

WM Data has a wide variety of customers from major Nordic banks and insurance companies to car manufactures, retail industries and the public sector. WM Data’s customers benefit from the wide range of services offered including system integration, enterprise resource planning, supply chain management and application management. It is envisaged that iBOLT will provide WM Data with a competitive edge in being able to decrease integration timescales whilst offering extensive functionality to the final project.

Tor Malmo, Managing Director of WM Data comments, “Our customers often require tactical integration projects to relieve pressure points within their business processes, and by taking just small components from a variety of internal systems we can create a business solution that immediately addresses these issues within the company operation. Magic’s iBOLT will enable us to provide this service quickly and at an affordable price; the benefit to our customers is that they can leverage more from their current IT investment.”

“We are very pleased that WM Data has decided to include iBOLT in its portfolio of services and products. We are matching WM Data’s commitment of dedicated iBOLT sales personnel with local training and support, and both companies are very encouraged by the amount of interest from customers,” says Regev Yativ, Managing Director, Magic EMEA.

About Magic Software Enterprises
Magic Software Enterprises, a subsidiary of Formula Systems (Nasdaq:FORTY), 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 corporate offices are located at 5 Haplada St. , Or Yehuda, Israel 972-3-538-9292.The Company's EMEA HQ offices are located in the Netherlands , Pelmolen 17 3994XX Houten, 0031-30.6566266. The Company's North American subsidiary is located at 23046 Avenida de la Carlota, Laguna Hills , CA 926653, telephone (800) 345-6244, (949) 250-1718, http://www.magicsoftware.com/.

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

Company Contact:
Avigdor Luttinger
VP Marketing and Corporate Strategy
Magic Software Enterprises
(949) 250-1718 X299
Press_relations@magicsoftware.com