Magic Software Releases Magic eContact V2.5 For Contact Center Outsourcers; New Customers Already Signing On To Growing List Of Users.

Business Editors and High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--May 23, 2002

Magic Software Enterprises (Nasdaq:MGIC), a leading provider of state-of-the-art application development technology and business solutions, today announced the release of Magic eContact(TM) V2.5, designed specifically for contact center outsourcers.

This latest version of Magic eContact, offers extensive and comprehensive support for dynamic contact centers and makes it easier to communicate with customers through enhanced e-mail integration and Web support. It also provides integration with a wider range of telecommunication equipment for both incoming and outgoing services.

Already, several new customers are taking advantage of this release. In the Netherlands, RLC Customer Contact Services and DNP Contact Center have decided to implement Magic eContact in their call centers, to rapidly respond to customer needs and campaign customization.

Magic eContact provides contact center agents the professional tools needed to efficiently and cost-effectively manage customer interactions, including the ability to drive targeted marketing campaigns in rapid response to market changes.

"Magic eContact V2.5 is aimed at empowering contact center outsourcers with the technology necessary to drive their operations over the Web," said Ilan Zajonts, Director of CRM at Magic Software Enterprises. "This release enables outsourcers to execute multiple projects concurrently over multiple media types, reduce training costs and increase agent efficiency."

This latest version of Magic eContact includes:

-- Web scripting -- enabling customers to interface with the contact center
over the Web. This new and revolutionary feature enables customers to run
contact Web scripts in a self-service mode;

-- Multiple project support -- provides the contact center manager the ability
to build and execute multiple projects simultaneously in a single environment,
while maintaining an isolated set of definitions for each of the projects;

-- Enhanced e-mail integration -- allowing the contact center dispatcher to
manage, distribute and rout incoming and outgoing e-mails according to
established business rules or automatically as part of a defined script or
event;

-- Searchable knowledgebase -- enables the gathering and search of disparate
data and information segmentation by categories or customer characteristics.

Contact Center Outsourcers Sign On

As a major provider of outsourced contact center services to companies in different industries, RLC Customer Contact Services (http://www.onedirect.nl) must handle many campaigns and projects on a daily basis. They were looking for a solution that could simultaneously handle multiple campaigns. It was crucial that there be minimal set-up time for each of the campaigns.

"Magic eContact gives us maximum flexibility to manage a wide range of projects, complete control over the processes involved, and the ability to respond rapidly to change despite the huge volumes of data we deal with," said Rocco Burgler, Sales Manager at RLC. "We are very impressed by the functionality of Magic eContact to the point that we even started selling the application to our customers."

One of Magic eContact's key features is its dynamic scripting engine, which guides contact center agents through conversational phases. The scripting mechanism allows the agent to give customers personalized attention and improved service based on the customer's unique profile. Magic eContact also helps to solve the high turnover and associated training issues that challenge most contact centers by providing a short learning curve and user-friendly functionality. This was especially important to DNP Contact Center (http://www.dnp-contactcenter.nl), another contact center outsourcer who decided to implement Magic eContact V2.5.

"Magic eContact offers a combination of high-performance at a reasonable cost," said Janet Moltmaker, Managing Director for DNP Contact Center. "Magic eContact eliminates the need for costly programming and provides a fast learning curve for new contact center agents. It also includes an implementation process that is among the shortest and simplest in the industry, rich functionality, easy integration with existing applications, and the ability to rapidly respond to market changes."

Magic eContact has been implemented at numerous sites worldwide in a wide range of industries, including publishing, insurance and call center outsourcing. For more information on Magic eContact, visit the Magic Software Web site at http://www.magicsoftware.com/econtact.

About Magic Software Enterprises

Magic Software Enterprises, a member of the Formula Systems group (Nasdaq:FORTY), develops, markets and supports software development and deployment 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. The company's North American subsidiary is located at 1642 Kaiser Avenue, Irvine, CA 92614, telephone: [phone], fax: [phone], http://www.magicsoftware.com.

Formula Systems is a global information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business 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.