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



MAGIC SOFTWARE ENTERPRISES LAUNCHES 
REVOLUTIONARY NEW WEB DEVELOPMENT TOOL, 
MAGIC eDEVELOPER(tm)

Enables Developers to Rapidly Build
Interactive Web Applications
in a Dynamic Environment

IRVINE, CA (February 22, 2001) - Magic Software Enterprises (Nasdaq:
MGIC), a leading provider of state-of-the-art application development
technology and business solutions, launched today its revolutionary
new Web development tool, Magic eDeveloper(tm).  Magic eDeveloper
enables developers to build interactive Web applications in a dynamic
environment, giving them the tools they need to easily and rapidly
create solutions that do not take the user out of context when
processing requests or information.

Magic eDeveloper is part of the Magic eBusiness Platform, a
comprehensive framework for rapidly developing, customizing and
deploying complex e-business solutions, which addresses the principal
problems in IT management today:

* a shortage of IT resources
* a need to change dynamically with business changes
* a need for full integration with legacy systems and new technologies   

In addition to Magic eDeveloper, the Magic eBusiness Platform includes
the Magic Application Server, an integrated and scalable,
multi-threaded application server, and Magic eMerchant(tm), the
Company's award-winning e-business application template that allows
companies to rapidly deploy sophisticated e-commerce sites.

Magic eDeveloper
Magic eDeveloper, which employs an enhanced, browser-based deployment
paradigm and offers open, extensible support for the Industry's
leading Internet Web browsers and servers, application servers, and
languages and databases, provides developers several key features:

* The Ability to Rapidly Create Interactive Web Applications - An
integrated mechanism defines client-side functionality for field-level
validation, event trapping and execution, automatic refresh of data
within fields, automatic change to the appearance of interface
elements, and direct update of data views.

* An Object Model Repository - An object-oriented model repository
stores and displays object models, which are assigned property values
and automatically updated when the properties of the model class
change.  This enables developers to define objects once and inherit
their properties throughout their applications.

* A Component Framework - A new component framework enables developers
to easily build new application components, and to integrate external
application components and other business processes.  The component
framework includes a Component Builder, Component Interface Builder,
and Component Repository for storing components.

* Improved Event-Based Programming - Event handlers react to different
types of events, including internal, external, system, application,
user-defined and expression-evaluated events.  This allows for clearer
and better definition of application logic, while the event-driven
engine enables easier definition of global logic.

 "Working with Magic eDeveloper's interactive Web development
 functionality and its component framework, our developers are able to
 build solutions with enhanced Web and transaction processing
 functionality in just a fraction of the time it used to take," said
 Yakov Samelson, vice president of Silver.net.  "In addition, Magic
 eDeveloper allows us to rapidly convert traditional client/server
 applications to Web applications."

Silver.net (http://www.silvernet.co.il) is a Magic Solutions Provider
that provides FRM financial solutions to large-scale industries and
institutions such as Motorola, Nortel Networks and Tower
Semiconductors.

 "In every demonstration of Magic eDeveloper to date, companies have
 expressed amazement at the speed with which they are able to develop,
 deploy and maintain Web applications," said David Leichner, vice
 president of Worldwide Marketing for Magic.  "They are especially
 impressed by how Magic eDeveloper enables them to maximize the
 productivity of their manpower and other resources to turn out highly
 functional, scalable and portable business applications tailored to
 meet even the most demanding requirements."

Magic eDeveloper is available immediately.  For more information,
visit the Magic website at http://www.magicsoftware.com/edeveloper.

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.