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Call Centre Solution Provides Ability to Drive Targeted Marketing
in Rapid Response to Market Changes

Bracknell, UK (26 January, 2001) - Magic Software Enterprises (Nasdaq:
MGIC), a leading provider of state-of-the-art application development
technology and business solutions, released today Magic eContactT Version
This latest version of Magic eContact, available immediately worldwide, is
highly functional, integrated desktop application that provides contact
centre agents the professional tools needed to efficiently and
cost-effectively manage customer interactions, including the ability to
drive targeted marketing campaigns in rapid response to market changes.

According to research recently published by the Forum Corporation, the
average business loses between 15 to 35% of its customers annually, with
of these defections coming from poor sales or service interaction. With
this newest version of Magic eContact, companies are able to resolve these
problems almost instantaneously and at substantially reduced cost.

Businesses can implement their customer relationship management (CRM)
philosophies at the contact centre level without the need for expensive
time-consuming programming. In addition, the solution's dynamic design
gives the contact centre manager the power to rapidly modify any variable
from the smallest data item to the most complex business rule - without
need for coding.

"Magic eContact gives us maximum flexibility to manage our wide range of
projects, complete control over all the processes involved, and the
to respond rapidly despite the huge volumes of data we deal with," said
Friedland, vice president of operations for Beeper Communications.

One of Magic eContact's key features is its dynamic scripting engine,
guides agents through all conversational phases. The scripting mechanism
allows the agent to give customers personalised attention and improved
service based on the customer's unique profile. Magic eContact also
the high turnover and associated training issues that challenge most
centres by providing a short learning curve and user-friendly

"Magic eContact offers a combination of high-performance at reasonable
cost -- including the elimination of costly programming, a fast learning
curve for new contact centre agents, an implementation process that is
the shortest and simplest in the industry, rich functionality, easy
integration with existing applications, and the ability to rapidly respond
to market changes," said Andy Peat, Head of Marketing for Magic. "While
many contact centre solutions perform well on one or two of these
I know of no other commercial product that combines all these features
one umbrella."

Already, Magic has implemented the solution at numerous sites worldwide in
wide range of industries, including publishing, insurance, communications,
call centre outsourcing, etc. For more information on Magic eContact,
the Company's Website at

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 customised 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,
including the UK.

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
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.

Company Contact:

Andy Peart

Magic Software Enterprises UK Ltd

01344 667000


Media Contact:

Sara Claridge

Marylebone Media Relations

Tel: 0118 975 5188


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