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.