(EMAILWIRE.COM, April 26, 2001 ) IRVINE, CA -- Magic Software Enterprises (Nasdaq: MGIC), a leading provider of state-of-the-art application development technology and business solutions, announced today that it has received a Product of the Year 2000 Award for its Magic eService(tm) Web-based customer management solution. The award was the result of an extensive product review conducted by Customer Inter@ction Solutions, the leading source for in-depth information on computer/telephony products, solutions and innovations. According to Customer Inter@ction Solutions, Magic eService embodies the latest "technological evolution and application refinements" among companies' offerings.

"Customer Inter@ction Solutions magazine heartily congratulates Product of the Year 2000 Award recipient, Magic eService," said Richard Tehrani, president and group publisher of Customer Inter@ction Solutions. " It is one of only a small handful of products to successfully address the selling complexities of business-to-business, multichannel/multimedia interaction, and call logging and monitoring."

Magic eService is an entirely Web-based, enterprise-level customer service management system that streamlines service workflow and provides companies a comprehensive picture of their service departments in real time. It is designed to allow companies to gain control of and manage their service departments as profit centers.

Using Magic eService, companies can completely track and centralize management of each customer interaction - from first contact to problem resolution. Customers receive immediate and personalized attention through round-the-clock, interactive service, while management tools measure service department profitability, cost and resource allocation for better decision-making.

"We are extremely gratified to receive top honors from Customer Inter@ction Solutions for our Magic eService solution," said David Leichner, vice president of worldwide marketing for Magic. "Many companies already have implemented the product, which allows them to significantly reduce overhead costs while enabling effective, long-term customer service. In today's Web-based economy, these benefits are mandatory for companies wanting to compete more effectively."

Some of the organizations that have implemented Magic eService include Orad Virtual Studios (Israel), Philips (UK), Marconi Mobile (UK), Simoco (UK), Baltimore Country Schools (US), Leroy Merlin (France) and San Joan Hospital (Spain). For more information on Magic eService, companies can visit Magic's website at http://www.magicsoftware.com/eservice.

About Customer Inter@ction Solutions
Customer Inter@ction Solutions is a product of Technology Marketing Corporation (TMC), a publishing company founded in 1972 by Nadji Tehrani. In 1982, Customer Inter@ction Solutions magazine first debuted under the name Telemarketing(r), later evolving to C@ll Center CRM Solutions and, in December 2000, to Customer Inter@ction Solutions. It is dedicated to providing business and technical information on how to more effectively equip and run today's call center. For more information on TMC and its complete family of publications, visit http://www.tmcnet.com.

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.

For More Information, Contact:
Katharine Hanley
Director, IR/PR
Magic Software Enterprises
949-250-1718 ext. 220
khanley@magicsoftware.com

Contact Information:
Magic Software Enterprises
Kathy Hanley
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