On Wednesday, August 29, 2001, in Booth #860 at the DCI CRM Expo,  which is
being held at the Jacob Javits Center in New York City, Magic Software
Enterprises' North American subsidiary will introduce Magic CRM, its
powerful, yet affordable, new comprehensive customer relationship
management solution that allows ALL departments within companies to share
vital customer information to improve sales effectiveness, increase
customer loyalty and produce higher revenues.  Using Magic CRM, companies'
Sales, Marketing, Service, Accounting and Fulfillment teams can collaborate
to produce and maintain integrated, accurate customer data that can be used
to increase sales volume.  Magic CRM is one of the only products in
existence today that offers all of the key components of business
management (not just CRM) in a SINGLE module.

The attached releases discusses this exciting new product from Magic.
Magic also is making available a free flash demo of the product available
through its website, www.magicsoftware.com/magiccrm.

Please feel free to contact me if you have any questions.

Best regards,
Katharine Hanley
Magic Software Enterprises
949/250-1718 ext. 220
khanley@magicsoftware.com

(See attached file: MagicCRMRelease82001.txt)
Contact:
Katharine Hanley
IR/PR
Magic Software Enterprises
(949) 250-1718 ext. 220
khanley@magicsoftware.com


MAGIC SOFTWARE ENTERPRISES' 
AMERICAS SUBSIDIARY INTRODUCES 
MAGIC CRM(tm), THE FIRST AFFORDABLE SOLUTION 
TO PROVIDE COMPANIES A SINGLE,
 INTEGRATED VIEW OF THEIR CUSTOMERS

Combines Traditional CRM Features with 
Pre-Built Real-time Accounting/ERP Interfaces
to Increase Sales Effectiveness and Improve Customer Loyalty

IRVINE, CA (August 27, 2001) - Magic Americas, Magic Software Enterprises'
(Nasdaq: MGIC) North American subsidiary, introduced today Magic CRM(tm)
powered by Adapt(tm) ("Magic CRM").  Magic CRM is the first affordable
solution on the market to allow mid-sized companies a single integrated view
of their customers.  

In addition to modules for targeted mass marketing, advanced sales
automation, and complete customer service, Magic CRM also includes pre-built,
real-time accounting/ERP interfaces to reduce training and implementation
expenses, and to allow companies to exchange information across their entire
enterprises in support of increased sales effectiveness and customer loyalty.

Magic CRM
While most CRM approaches today require companies to assemble CRM solutions
in pieces, Magic CRM offers all of the key components of business management
(not just CRM) in a single module that can be acquired inexpensively and
implemented quickly.  It includes the following:

* Marketing Campaign Management - Magic CRM enables marketing professionals
to manage customized marketing campaigns, link account responses and
opportunities resulting from each campaign, track budgets and actual expenses
per campaign, and generate revenue forecasts and real-time profitability per
campaign.  In addition, a fulfillment system helps ensure timely delivery of
requested or promised collateral.

* Sales Opportunity Management - Magic CRM enables salespersons to analyze
competitors and buying issues to help project customer and market trends, and
to monitor the details and progress of pending opportunities as they relate
to the selling process.  In addition, Magic CRM can generate sales expenses,
perform win/loss analyses, and execute graphical pipeline reports in real
time based upon user-defined metrics.

* Complete Customer Service Management -- Magic CRM also includes advanced
tools for establishing account-specific service-level agreements, tracking
service tickets, and managing warranty programs and renewals.   In addition,
its user-defined routing and escalation engine allows tasks to be delivered
to those persons most qualified to respond.

* Accounting/ERP Integration - And Magic CRM offers pre-built, real-time
interfaces with the leading mid-range accounting/ERP programs.  What this
means is that companies can create sales orders in their accounting systems,
view shipments, track invoices for collection, and inspect other
customer-related information without ever exiting the system.  The result is
a true customer- and sales-centric organization.

 "The purpose of Magic CRM is not to have your sales force make more calls or
your marketing personnel turn out more campaigns, but to have both groups
perform better," said Steven P. Nohe, Sr., chief executive officer of Magic
Americas.  "By giving sales and marketing professionals access to integrated,
cross-departmental customer information, companies are able to efficiently
target their sales and marketing efforts directly at the needs of each
individual customer.  This means greater sales effectiveness and increased
customer loyalty -- the by-products of which are higher revenues and improved
margins."

Magic will be demonstrating Magic CRM in its Booth #860 at the DCI CRM Expo
opening Wednesday, August 29, 2001, at the Jacob Javits Convention Center in
New York City.  The company also is making available a free demonstration
flash CD-ROM of the product to interested parties who wish to preview Magic
CRM's features.  Copies may be obtained either in person at the Magic Booth
or through the Magic website at www.magicsoftware.com/magiccrm.  Magic CRM is
available only through Magic Americas.  

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, which includes Magic Software Enterprises, Inc.,
CoreTech Consulting Group, Inc., Answers on Demand, and Access Data, 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.