Magic Software Enterprises Uses Magic eMerchant to Help Hoffmann GmbH Develop Sophisticated Online Presence

Business Wire, Nov 1, 2000

IRVINE, Calif.--(BUSINESS WIRE)--Nov. 1, 2000

E-Business Site to Manage Sales of About 35,000 Items to More Than

78,000 Customers Worldwide

Magic Software Enterprises (Nasdaq:MGIC), a leading provider of state-of-the-art technology and business solutions, Wednesday announced that it is working with Hoffmann GmbH Qualitaetswerkzeuge (Hoffmann), Germany's leading wholesaler of high-quality tools, to establish an online presence.

The site, which is being developed and implemented in stages using Magic's award-winning e-commerce template (Magic eMerchant(TM)), ultimately will be home to about 35,000 items that can be ordered directly online for delivery within 24 hours. Currently, more than 78,000 customers in Germany, including Audi and DaimlerChrysler, purchase their tools from Hoffmann.

The challenge in creating the Hoffmann site is to provide Hoffmann the flexibility to offer each of its more than 78,000 customers different pricing for each of the approximately 35,000 items the company sells. In addition, Hoffmann wants a uniform catalog structure that will allow the company to impart the breadth of information, and to achieve the level of diversity, offered by its printed catalog.

Also required is the ability for orders received on the site to be forwarded directly to the appropriate Hoffmann partner. And the site must be operational in 16 weeks.

"We chose Magic eMerchant as our e-commerce solution because it allows us to implement a very complex and personalized site within an extremely short timeframe. None of the other competing products on the market, such as Intershop, can do this," said Koch-Erpach, head of Hoffmann's IT Department.

"In addition, Magic eMerchant provides us all of the functionality we need, including customizable and personalized pricing and catalogs, different rights for individual users, and the scalability, to grow in the future."

Magic is integrating Magic eMerchant with Hoffmann's SAP back-end system so that information may be drawn from the same database used for the printed catalog. In addition, Magic is integrating all of Hoffmann's partners completely into the Magic eMerchant system to allow them to receive orders directly, in both free text and order form format as needed.

"Hoffmann represents a tremendous opportunity for Magic to demonstrate the superiority of its e-commerce solution, Magic eMerchant, and the speed with which it can be implemented to help businesses expand their international reach and become more profitable," said David Leichner, vice president of Worldwide Marketing for Magic.

"We are extremely excited to be working with a company like Hoffmann that is so highly regarded in its industry."

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.

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.