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



MAGIC SOFTWARE ENTERPRISES
NAMES SOFTWARE VETERAN MENACHEM HASFARI 
AS ITS NEW CHIEF EXECUTIVE OFFICER



OR YEHUDA, ISRAEL (February 1, 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 named software veteran Menachem Hasfari as its new Chief Executive
Officer.

"We are very fortunate to have Menachem Hasfari as our new CEO.  He
has the depth of industry and management experience to guide Magic
through its next phases of growth," said Dan Goldstein, Chairman of
Magic.  "Not only does Menachem understand what it takes to drive
profitable winning organizations, he also has the kind of leadership
and sales and marketing expertise to capitalize on the huge market
opportunity available in the e-commerce solutions field."

Hasfari's career, which spans more than 20 years in the international
software arena, encompasses all aspects of management and technology
with both start-up and large global organizations.  From 1992 through
1999, he served as CEO and President of EduSoft Ltd., a company
dedicated to development and marketing of educational and training
software -- primarily English learning multimedia and Internet
applications.

Prior to EduSoft, he served as Executive Vice President of Degem
Systems Ltd., a public company listed on the Tel Aviv Stock Exchange
that develops and markets computer-based training systems in dozens of
countries.  From 1980-1984, he was head of the project department at
the Israeli office of Control Data Corporation.

"This is an excellent opportunity to build an aggressive and
fast-growing company," said Hasfari.  "The market is ripe for the
kinds of e-commerce solutions Magic offers - solutions that provide
superior time-to-market and total legacy system integration at a time
when it is critical for companies to obtain maximum productivity from
their assets.  I look forward to this new endeavor and to working with
the exceptional team of individuals at Magic."

Hasfari is a graduate of The Hebrew University in Jerusalem where he
obtained his B.A. degree in economics.  He holds an M.B.A. degree from
Tel Aviv University.

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.