Agreement Valued up to $750,000

    OR YEHUDA, Israel, May 16 /PRNewswire-FirstCall/ -- Magic Software
Enterprises (NASDAQ: MGIC), a leader in enterprise application development,
deployment and integration technology, and Shlomo Sixt Car Rental Ltd., one
of Israel's leading vehicle rental firms, have signed an agreement for the
development of operational IT systems for the Shlomo Group. The development
will be carried out using Magic Software's eDeveloper(TM) application
development platform. 

    Pursuant to the contract, Magic Software will develop the operational
systems for Shlomo Sixt Car Rental as a system with a service-oriented
architecture (SOA). Once completed, Shlomo Sixt will benefit from a
unified, centralized system that responds to the company's diverse business
activities including vehicle rental, operations, transportation,
maintenance and contracts.

    The value of the agreement is estimated at up to US$750,000 which will
be recognized over a three-year period.

    eDeveloper is a metadata driven development and deployment platform for
the implementation of complex business critical solutions and adheres to
SOA principles. eDeveloper allows companies to protect their legacy IT
investments by using existing business processes. This enables rapid
adaptation and customization of distributed, complex and large-scale
business applications.

    "Magic's eDeveloper proved its value to us over the years in the
development of some of our key systems," said Asi Shmeltzer, CEO of Shlomo
Sixt. "The platform's capabilities and strengths enable us to rapidly adapt
our IT systems to meet our frequently changing business needs."

    Udi Ertel, CEO of Magic Israel Ltd., Magic Software's Israeli
subsidiary, commented, "Shlomo Sixt Car Rental is capitalizing on the
business advantages that an IT system powered by Magic's eDeveloper can
provide them. The major agreement we've reached with Shlomo Sixt reflects
their confidence in Magic Software's technology."

    About Shlomo Sixt Car Rental
    Shlomo Sixt is Israel's oldest and leading vehicle rental firm. Shlomo
Sixt provides vehicle rental services both in Israel and abroad. With
10,000 vehicles in its fleet, the company's clients include companies in
the public and private sectors. Shlomo Sixt has branches throughout the
country, as well as in New York and Paris. Shlomo Sixt is part of Shlomo
Group, a leading holding company which comprises Israel's largest vehicle
and car service group with a combined fleet of more than 50,000 vehicles.

    About Magic Software Enterprises
    Magic Software Enterprises (NASDAQ: MGIC) has been a leader in
enterprise application development, deployment and integration technology
for more than two decades. Magic Software is a subsidiary of Formula
Systems Ltd., a company effectively controlled by Emblaze Ltd. The
company's service-oriented platform is used by companies worldwide to
develop, maintain, and deploy both legacy and new business solutions, while
integrating these applications across both internal and external,
heterogeneous environments. Magic Software's platform-independent
methodology lets companies achieve agility by quickly assembling composite
applications, allowing programmers to create services and architects and
business analysts to orchestrate and reuse these services to enable
business processes. Through partnerships with industry leaders such as IBM
and SAP and more than 2500 ISVs worldwide, Magic Software technology is
used by more than 1.5 million customers around the globe.

    For more information on Magic Software Enterprises and its products and
services, visit http://www.magicsoftware.com.

    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.

    Press contacts:
    Steven L. Lubetkin
    Public Relations Counsel
    Magic Software Enterprises Ltd.
    slubetkin@magicsoftware.com
    Phone: +1-856-751-5491
    Cell: +1-856-625-5502

    Mary Lou Roberts
    Magic Software Corporate Communications
    Phone: +1-215-740-8976
    mlroberts@magicsoftware.com


SOURCE Magic Software Enterprises Ltd

____________________________________________




____________________________________________

>> Back to Main Page

Gary E. Smith
SOA Enterprise Architect