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Enhanced in-house system provides fully functional freight and haulage applications with comprehensive integration capabilities

Bracknell, UK (02nd June 2004) – Magic Software Enterprises (Nasdaq: MGIC), a leading provider of state-of-the-art business integration and development technology, announced today a $200,000 contract with Denholm Logistics Ltd to upgrade and enhance its freight and haulage systems using eDeveloper 9.4, Magic’s unique application development environment. The project will enable Denholm Logistics to offer even higher levels of service to its wide range of international freight forwarding and road haulage clients through enhanced functionality and streamlined processes. It also positions Denholm Logistics to offer closer integration with third-party software systems.

Denholm Logistics is part of the privately owned J. & J. Denholm Group (www.denholm-group.co.uk). Founded in 1866 the group has grown progressively and today has a turnover in excess of £150 million and employs more than 1,400 people around the world. Denholm Logistics provides a comprehensive portfolio of logistics services, including freight forwarding & management, liner agency, haulage, port agency, warehousing & stevedoring.

Tom Brown, Group IS Manager, J & J Denholm Ltd comments, “Magic has enabled us to very quickly advance our existing systems to keep us at the forefront of logistics technology and to include additional functionality that will further enhance the high-quality services we already provide to our customers. The speed at which Magic eDeveloper has enabled us to adapt and bespoke our logistics applications has been exceptional and we have been extremely impressed by the high quality of personnel that Magic assigned to this project.”

The new “Haulix” (haulage) and “Freightix” (freight forwarding) systems will now allow Denholm Logistics to quickly and easily integrate third party applications into the system as well as providing enhanced capability to integrate direct with customer systems.

This will enable Denholm Logistics to streamline their operational business processes even further, providing additional cost savings. In addition, Magic eDeveloper’s speed and flexibility has now made it a main contender for other projects within the Denholm Group.

“Once again Magic has been able to prove that when it comes to speed of development and functionality for logistic organisations eDeveloper wins hands down,” says Regev Yativ, Managing Director, Magic EMEA. “Easy integration into internal and external business processes is seen as a critical step for improving customer service, achieving SLAs and reducing costs within the logistic industry and Denholm’s new, enhanced systems will provide them with just that.”

About Magic Software Enterprises
Magic Software Enterprises, a subsidiary of Formula Systems (Nasdaq: FORTY), develops, markets and supports software development, deployment and integration 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, including the UK. http://www.magicsoftware.com/.

Formula Systems 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.

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

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


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