Sapiens Reports Strong Q2 2009 Results

Q2/2009 Net Income of $0.9 million or $0.04 per share

August 20, 2009

Cary, N.C. – August 20, 2009 - Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS) (“Sapiens” or “Company”), a leading global provider of innovative business solutions that modernize business processes and enable insurance organizations to adapt quickly to change, and a member of the Formula (NASDAQ: FORTY and TASE: FORT) Group, today  announced its results of operations for the second quarter of 2009.

Highlights for Q2 2009

• Operating profit reached $1.3 million, reflecting growth of 117% compared with $0.6 million in Q2 2008
• Eleven consecutive quarters of operational profit.
• Net Income reached $1.1 million on a non GAAP basis,  compared with a ($0.4) million net loss in Q2 2008
• Revenues reached $10.2 million, a decrease of 7% compared with $11.0 million in Q2 2008.
• Total equity of $23.7 million, which represents 50% of balance sheet.
• Earnings per share for this quarter were $0.04 (fully diluted), a significant increase from $0.02 (fully diluted) loss per share reported in Q2 08.

Roni Al-Dor, President and CEO of Sapiens, commented, “In the second quarter of 2009, we continued to improve our results despite the challenging world-wide economical environment. During the first half of 2009, we more than doubled our operational profit reaching $2.3 million and reached a net income of $1.9 million from loss of $1.7 million in first half of 2008. In Q2 of 2009 we further improved our operational profit compared to Q1 of 2009 and the comparable period of Q2 2008 reaching operational profit of $1.5 million on non GAAP basis. Revenue in Q2 of 2009 reached $10.2 million, slightly decreased from comparable Q2 of 2008, due to deferred of revenues in a project which will be off-set in the coming quarters.

Mr. Al-Dor continued, "Our success is reflected in the company balance sheet working capital and cash position we have today compared to previous years.   In addition, we are dealing with an increasing number of opportunities which are addressed by our products suites including the Sapiens INSIGHT for Closed Books platform, as well as the Sapiens INSIGHT for Reinsurance, as well as our windows for eMerge applications.

"Looking forward, with our proven solutions, improved financial performance and a broad customer base; I believe that we are well positioned to continue improving our performance",     concluded Mr. Al-Dor.

Reconciliation between U.S. GAAP and Non-GAAP results is summarized in the following table.  For a complete reconciliation, please refer to the tables at the end of this release.

U.S. GAAP results include amortization of capitalized software developments, capitalization of software development costs, and stock-based compensation expenses.

Comment Regarding Non-GAAP
Sapiens' management believes that the presentation of non-GAAP measures can enhance the understanding of the company’s ongoing economic performance, and provides useful information to investors regarding financial and business trends relating to the company’s financial condition and results of operations. Sapiens therefore uses internally the non-GAAP information to evaluate and manage the Company’s operations.

This non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP financial measures are not based on any comprehensive set of accounting rules or principles. Sapiens believes that non-GAAP financial measures have limitations in that they do not reflect all of the amounts associated with Sapiens' results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Sapiens' results of operations in conjunction with the corresponding GAAP measures.

Please refer to the Reconciliation of GAAP to Non-GAAP Results at the end of this release.

Click here to download Sapiens Q2 09 Results

About Sapiens International
Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS), a member of Formula Group (NASDAQ: FORTY  and TASE: FORT), which is a member of the Emblaze Group (LSE: BLZ.L) 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, ING, Liverpool Victoria, Menora Mivtachim, Norwich Union, Occidental Fire & Casualty, OneBeacon, Principal Financial Group, Santam and Texas Farm Bureau among others.

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

Except for historical information contained herein, the matters set forth in this release are forward-looking state-ments that are dependent on certain risks and uncertainties, including such factors, among others, as market accep-tance, market demand, pricing, changing regulatory environment, changing economic conditions, risks in new prod-uct and service development, the effect of the Company's accounting policies, specific system configurations and software needs of individual customers and other risk factors detailed in the Company's SEC filings

FOR ADDITIONAL INFORMATION

Roni Giladi
Chief Financial Officer
Sapiens International
Tel: +972-8-938-2721
E-mail: IR.Sapiens@sapiens.com

Roni Al-Dor
Chief Executive Officer
Sapiens International
Tel: +972-8-938-2721
E-mail: IR.Sapiens@sapiens.com