Sapiens Announces Q1 2006 Results

Company Increases Revenue

May 10, 2006

Research Triangle Park, N.C. – May 10, 2006 - Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS) today announced its unaudited financial results for the first quarter of 2006, ended March 31, 2006.
For the first quarter, the Company recorded revenues of $10.5 million, an increase from $9.8 million in the fourth quarter of 2005.

Operating loss for the quarter was reduced to $0.72 million, compared with $0.96 million in the previous quarter.  In the first quarter, the Company recorded a restructuring expense of $0.64 million, related to the downsizing in workforce, as previously reported by the Company. Without the restructuring costs, operating loss for the quarter would have been $0.08 million.

Net loss for the fourth quarter was reduced to $1.3 million, compared with a net loss of $3.1 million in the fourth quarter of 2005. Without the above restructuring costs, net loss for the quarter would have been $0.7 million.

Roni Al-Dor, President and CEO, commented "We are glad to report an increase in revenue and a reduction in our losses."

"We are beginning to see the initial results of our turnaround plan and we hope that we will continue this positive trend."

The Company recently announced a $5 million deal with one of the largest insurance companies in Central and Eastern Europe regarding its INSIGHT™ for Property & Casualty solution.

Click here to download Sapiens Q1 06 Results

About Sapiens International
Sapiens International Corporation N.V. (Nasdaq and TASE: SPNS), a member of Formula Group (Nasdaq: FORTY) and (TASE: FORT), 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, the United Kingdom, EMEA and Asia Pacific, and has partnerships with market leaders such as IBM and EDS. Sapiens' clients include AXA, Liverpool Victoria, Norwich Union, OneBeacon, Principal Financial Group, Prudential, Abbey National, ING, and Occidental Fire & Casualty among others.

For more information about Sapiens, please visit http://www.sapiens.com.

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.

FOR ADDITIONAL INFORMATION

Elior Brin
Chief Financial Officer
Sapiens International
+972-8-938-2934
IR.Sapiens@sapiens.com

Roni Al-Dor
Chief Executive Officer
Sapiens International
Tel: +972-8-938-2934
IR.Sapiens@sapiens.com