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Magic Software Enterprises Completes ERP Implementation for Pratt & Whitney Subcontractor; Aerospace Firm, Bet Shemesh Engines, Uses Magic to Light a `'Flame'' Throughout its Divisions.

Business Editors and High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--Oct. 15, 2001

Magic Software Enterprises (Nasdaq:MGIC), a leading provider of state-of-the-art development technology and business solutions, today announced that it had successfully completed implementation of an ERP system for Bet Shemesh Engines (BSE), a major supplier of maintenance, repair and overhaul services, and jet engine parts to Pratt & Whitney, GE Aircraft Engines, Allison, Samsung and several national air forces, including the Israeli Air Force.

The system, which is called "Flame" and which required Pratt & Whitney's sign off, covers nearly all aspects of BSE's business. The total value of the deal was $300,000.

BSE is a multi-faceted company that provides engineering design, castings, machining, assembly and testing for complete modules and engines. Its four divisions include:
-- Maintenance, repair and overhaul

-- Manufacturing

-- Casting

-- Small engines


Until 1999, BSE had a legacy system that managed different facets of each division's business. However, the system had become increasingly antiquated and a new system was needed that could be easily implemented, streamline workflow and help BSE manage the exchange of excessive amounts of data between its four divisions.

After considering several options, including Baan, BSE chose "Flame" (http://www.magicsoftware.com/flame), a Magic-based ERP solution that integrates workflow throughout the BSE organization.

Using Flame, BSE was able to protect its investment in legacy data and systems, at the same time the company was able to accommodate all of the complexities surrounding its manufacturing operations. Among the areas covered by Flame are:

-- Engineering and configuration control -- Sales (including quotations, order processing, delivery and

invoicing) -- Purchasing (including quotations, requests, order processing and

receipting) -- Warehousing -- Production floor management -- Tool management -- Costing

"Flame has provided us an effective, overall information management system, capable of delivering key information to our managers in a timely manner to support improved decision-making," said Noach Cholev, vice president of finance for BSE.

"In addition, Flame's ease-of-maintenance, as well as its ability to respond rapidly to changes in our manufacturing process has produced added dividends for the company. These are results we were not able to achieve when we did a pilot with Baan."

Currently, enhancements to the Flame system are being made to add a special engineering module, as well as to computerize the company's archive of drawings and link it to other parts of the system. Interfaces to the general ledger system also have been built and are in the testing phase.

"This implementation of our Flame ERP system at BSE is an excellent example of how companies can benefit from our feature-rich solutions that are easily customizable using Magic's superior development technology to address even the most complex business problems," said Menachem Hasfari, chief executive officer of Magic.

"We look forward to continuing the relationship with BSE and to delivering even further enhancements to the Flame system."

About Magic Software Enterprises

Magic Software Enterprises, a member of the Formula 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, Calif., 92614, telephone 949/250-1718, fax 949/250-7404, http://www.magicsoftware.com.

The Formula Group 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.
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Publication:Business Wire
Date:Oct 15, 2001
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