Magic Software Appoints Hilel Kremer CFO; Kremer Brings to the Position Over 10 Years of Financial Leadership Experience.

Business Editors

OR YEHUDA, Israel--(BUSINESS WIRE)--March 30, 2004

Magic Software Enterprises (Nasdaq:MGIC), a leading provider of state-of-the-art business integration and development technology, today announced the appointment of Hilel Kremer as its new Vice President of Finance and Chief Financial Officer. Kremer will assume his role effective immediately and will report to Magic's Chief Executive Officer, Menachem Hasfari.

Kremer, age 42, served from 1998 to 2003 as Chief Financial Officer of NUR Macroprinters (Nasdaq-SCM: NURM), a leading supplier of wide-format inkjet printing systems used for the production of out-of-home advertising materials. In this position, Kremer played an active role in running the company as a member of the Executive Committee and managing the Finance, MIS, HR, and Legal and Administration departments.

"Hilel's proven track record and solid understanding of the needs of multi-national companies will be an excellent addition to the Magic management team," said Menachem Hasfari, CEO of Magic Software. "With both strength as an operational manager and proven success in growth markets, Hilel will help Magic continue to build momentum in the software development and business integration market space."

Prior to joining NUR Macroprinters, Kremer held various senior finance management positions including the position of Vice President Finance and CFO at Scitex Asia Pacific, a subsidiary of Scitex. He has an MBA from INSEAD in France and a B.A. in Economics from Hebrew University of Jerusalem.

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. Magic's EMEA headquarters is located at Pelmolen 17 3994 XX Houten in the Netherlands, telephone: [phone], fax: [phone]. Magic's North American subsidiary is located at 17310 Redhill Avenue #270, Irvine, CA 92614-5637, telephone: [phone], fax: [phone], http://www.magicsoftware.com/.

Formula Systems is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and producing computer-based solutions.

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.