Contact:
Katharine Hanley
Director, IR/PR
Magic Software Enterprises Ltd.
(949) 250-1718 ext. 220
khanley@magicsoftware.com



MAGIC SOFTWARE ENTERPRISES WINS
PRODUCT OF THE YEAR 2000 AWARD
FOR ITS MAGIC eSERVICE(tm) SOLUTION

Easy-to-Implement Customer Management Solution
Enables Companies to Streamline Service
Workflow to Produce Profit


IRVINE, CA (April 26, 2001) - Magic Software Enterprises (Nasdaq:
MGIC), a leading provider of state-of-the-art application development
technology and business solutions, announced today that it has
received a Product of the Year 2000 Award for its Magic eService(tm)
Web-based customer management solution.  The award was the result of
an extensive product review conducted by Customer Inter@ction
Solutions, the leading source for in-depth information on
computer/telephony products, solutions and innovations.  According to
Customer Inter@ction Solutions, Magic eService embodies the latest
"technological evolution and application refinements" among companies'
offerings.

"Customer Inter@ction Solutions magazine heartily congratulates
Product of the Year 2000 Award recipient, Magic eService," said
Richard Tehrani, president and group publisher of Customer Inter@ction
Solutions.  " It is one of only a small handful of products to
successfully address the selling complexities of business-to-business,
multichannel/multimedia interaction, and call logging and monitoring."

Magic eService is an entirely Web-based, enterprise-level customer
service management system that streamlines service workflow and
provides companies a comprehensive picture of their service
departments in real time.  It is designed to allow companies to gain
control of and manage their service departments as profit centers.

Using Magic eService, companies can completely track and centralize
management of each customer interaction - from first contact to
problem resolution.  Customers receive immediate and personalized
attention through round-the-clock, interactive service, while
management tools measure service department profitability, cost and
resource allocation for better decision-making.

"We are extremely gratified to receive top honors from Customer
Inter@ction Solutions for our Magic eService solution," said David
Leichner, vice president of worldwide marketing for Magic.  "Many
companies already have implemented the product, which allows them to
significantly reduce overhead costs while enabling effective,
long-term customer service.  In today's Web-based economy, these
benefits are mandatory for companies wanting to compete more
effectively."

Some of the organizations that have implemented Magic eService include
Orad Virtual Studios (Israel), Philips (UK), Marconi Mobile (UK),
Simoco (UK), Baltimore Country Schools (US), Leroy Merlin (France) and
San Joan Hospital (Spain).  For more information on Magic eService,
companies can visit Magic's website at
http://www.magicsoftware.com/eservice.


About Customer Inter@ction Solutions
Customer Inter@ction Solutions is a product of Technology Marketing
Corporation (TMC), a publishing company founded in 1972 by Nadji
Tehrani.  In 1982, Customer Inter@ction Solutions magazine first
debuted under the name Telemarketing(r), later evolving to C@ll Center
CRM Solutions and, in December 2000, to Customer Inter@ction
Solutions.  It is dedicated to providing business and technical
information on how to more effectively equip and run today's call
center.  For more information on TMC and its complete family of
publications, visit http://www.tmcnet.com.


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.