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Customers quote fast implementation and short learning curve as key
ingredients


Bracknell, UK. (May 24, 2002) - Magic Software Enterprises (Nasdaq: MGIC), a
leading provider of state-of-the-art application development technology and
business solutions, announced today the release of Magic eContact V2.5,
designed specifically for contact centres. This latest version of Magic
eContact, offers extensive and comprehensive support for dynamic contact
centres and makes it easier to communicate with customers through enhanced
email integration and web support. It also provides integration with a wider
range of telecommunication equipment for both incoming and outgoing
services.


Already, several new customers are taking advantage of this release. In the
Netherlands, RLC Customer Contact Services and DNP Contact Center have
decided to implement Magic eContact in their call centres, to rapidly
respond to customer needs including campaign customisation.


"Magic eContact offers a combination of high-performance at a reasonable
cost," said Janet Moltmaker, Managing Director for DNP Contact Centre.
"Magic eContact eliminates the need for costly programming and provides a
fast learning curve for new contact centre agents. It also includes an
implementation process that is among the shortest and simplest in the
industry, rich functionality, easy integration with existing applications,
and the ability to rapidly respond to market changes."


One of Magic eContact's key features is its dynamic scripting engine, which
guides contact centre agents through 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 helps to solve the high turnover and associated training issues that
challenge most contact centres by providing a short learning curve and
user-friendly functionality. This was especially important to DNP Contact
Centre http://www.dnp-contactcenter.nl , another contact centre outsourcer
who decided to implement Magic eContact V2.5.


"Magic eContact gives us maximum flexibility to manage a wide range of
projects, complete control over the processes involved, and the ability to
respond rapidly to change despite the huge volumes of data we deal with,"
said Rocco Burgler, Sales Manager at RLC. "We are very impressed by the
functionality of Magic eContact to the point that we even started selling
the application to our customers."


Magic eContact 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.


This latest version of Magic eContact includes:


* Web scripting - enabling customers to interface with the contact centre
over the web. This new and revolutionary feature enables customers to run
contact web scripts in a self-service mode.

* Multiple project support - provides the contact centre manager the ability
to build and execute multiple projects simultaneously in a single
environment, while maintaining an isolated set of definitions for each of
the projects.

* Enhanced email integration - allowing the contact centre dispatcher to
manage, distribute and rout incoming and outgoing emails according to
established business rules or automatically as part of a defined script or
event.

* Searchable knowledge base - enables the gathering and search of disparate
data and information segmentation by categories or customer characteristics.


For more information on Magic eContact, visit the Magic Software website at


http://www.magicsoftware.com/econtact


About Magic Software Enterprises


Magic Software Enterprises, a member of the Formula Systems 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. http://www.magicsoftware.com


Formula Systems is a global information technology company principally
engaged, through its subsidiaries and affiliates, in providing software
consulting services, developing proprietary software products and providing
computer-based business 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.


Company Contact:


Andy Peart
Magic Software Enterprises UK Ltd
01344 667000
andy_peart@magicsoftware.com

Media Contact:
Sara Claridge
Marylebone Media Relations
Tel: 01344 876558
Email: sara@marylebone.co.uk



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