Magic Software Announces Free Offering of Its Highly Productive Application Development Technology to the Linux Community.

IRVINE, Calif.--(BUSINESS WIRE)--March 22, 1999--Magic Software Enterprises Inc. (Nasdaq:MGICF) Monday announced that it is offering a limited version of its highly productive application development technology, along with demo applications and e-mail support, to the Linux community.

The version, which includes gateways to both Informix and Oracle databases, is being made available now through Aug. 31, 1999.

Background

Linux, developed in 1991 by Linus Torvalds, is a free, multiuser, multitasking, demand-paged virtual memory system incorporating most, if not all, of the features found in the modern-day UNIX operating system. From an initial user base of approximately 100 "long-haired hackers," Linux today boasts more than 8 million users worldwide (or approximately 6 percent of the server operating system market). It quickly has emerged as the alternative to Microsoft Windows NT, especially for deploying Web applications.

One impediment to Linux's even wider acceptance, however, has been the absence of business applications developed for the operating system. With this free offer from Magic, all that could change. Not only does Magic have several thousand Magic Solutions Providers worldwide who can easily move their applications to Linux, Magic also is credited with being the most productive application development technology on the market. It can efficiently integrate existing data, applications and systems with new solutions designed to take advantage of emerging technologies.

"There were several factors that led to our decision to make this offer," said Jack Dunietz, chief executive officer of Magic. "First, we wanted to give our Magic software houses the ability to develop on low-cost Linux machines. Second, we wanted to enable our solutions partners to quickly provide solutions for the application-hungry Linux community. Finally, we wanted to empower Linux developers to efficiently grow the number of applications available for the platform, and to have an extremely productive and proven environment for creating powerful e-commerce applications that would help them gain business acceptance."

Offering Details

The version of Magic being used for Linux is the standard version of Magic 8.20 for SCO ODT 5, which supports both Informix and Oracle databases. It has been tested with Red Hat versions 5.1 and 5.2, the latest commercial versions of Linux. Full documentation is provided on the Magic 8.20 standard distribution compact disc, which is being distributed along with this special Magic version for Linux. In addition, limited e-mail support can be obtained through [e-mail].

The limited time distribution begins immediately and will run through Aug. 31, 1999. Interested developers can obtain their copies of the product and documentation through one of the following channels:

-- the Magic booth (Booth No. 752) at the Internet Commerce Expo

in Boston, March 22-25, 1999;

-- the Magic exhibit at CeBIT (Hall 6, Booth No. B06 or Hall 3,

Booth No. B51) in Hanover, Germany, March 18-24, 1999; or

-- the Magic Web site at http://www.magic-sw.com.

Magic Software Enterprises

Magic Software Enterprises offers the most productive, state-of-the-art development technology, customizable applications, and services for cost-effectively solving business problems. Using Magic, companies can efficiently leverage their existing resources and take advantage of emerging technologies.

Magic technology, applications and services are available through a global network of subsidiaries, distributors and solutions partners in more than 50 countries. The company is located at 1642 Kaiser Avenue, Irvine, Calif., 92614; telephone: [phone], fax: [phone], http://www.magic-sw.com.