Formula Systems (1985) Ltd. Announces a Change of Control in the Company

September, 12 2006

Herzliya, Israel, September 12, 2006 — Formula Systems (1985) Ltd. (Nasdaq: FORTY), a leading provider of information technology products, solutions and services, today announced that its principal shareholder, FIMGold Limited Partnership, an entity owned in equal parts by Dan Goldstein, Chairman of the Board, and FIMI Opportunity Fund and parties related to it, informed Formula that it entered today into an agreement for the sale of its entire shareholding in Formula to Emblaze Ltd., an Israeli company whose shares are listed on the official listing of the London Stock Exchange.

Under the agreement, subject to certain adjustments, FIMGold agreed to sell to Emblaze all of the shares it holds in Formula, approx. 4.4 million shares representing approx. 33.4% of Formula's outstanding share capital, at a price per share of $16. The closing of the transaction is expected to occur within the next 60 days and is subject to certain closing conditions. 

Statements made in this press release that are not historical facts are forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to: market demand for the company's products, dependence on strategic partners, integration of new business, successful implementation of Formula's products, economic and competitive factors, international market conditions, management of growth, technological developments, the ability to finance operations and other factors which are detailed in Formula's Securities and Exchange Commission filings, including its most recent report on Form 20-F. Formula undertakes no obligation to publicly release any revision to any forward-looking statement

Contact:

Israel:	Dan Goldstein, Chairman, Formula Systems (1985) Ltd. 011-972-9-959-8800
USA:	Dennis S. Dobson, for Formula Systems Ltd. (203) 255-7902