Magic Software Powers Up United Utilities eBusiness Solution; Implementation Integrates Legacy Data To Provide Online Quotations For Customers

Business Wire, April 18, 2002

Business Editors/High-Tech Writers

IRVINE, Calif.--(BUSINESS WIRE)--April 18, 2002

Magic Software Enterprises (Nasdaq:MGIC), a leading provider of application development technology and business solutions, announced today that United Utilities Networks has chosen Magic Software to deliver an online quotation system for its business customers. The project, whose initial value is approximately $300,000, includes business consultancy and Professional Services, and is expected to go live in June 2002. The project will be developed using the Magic eDeveloper (www.magicsoftware.com/edeveloper) application development environment.

United Utilities operates and maintains electricity and water distribution networks, which delivers electricity to 2.2 million customer premises and water to 2.9 million premises in North West England.

Magic Software will integrate United Utilities Networks' existing database infrastructure and legacy systems using Magic eDeveloper to create this new solution. The solution will enable business customers to access their online quotation system for major orders, such as new housing estates and business parks. It will streamline their current quotation system and enable them to provide a fast and efficient service to their customers.

"We wanted to build a business gateway that will allow our customers to access our existing systems and retrieve detailed information on quotations for specific projects," said John Marsh, Operations Director of United Utilities Networks. "We selected Magic Software after a detailed evaluation of players in the market because of their proven track record and methodology for delivering eBusiness solutions."

Magic Software first provided United Utilities Networks with a consultancy "Business Needs" workshop to establish a specific online strategy. Once the business objectives and requirements had been decided, Magic designed a detailed development plan to integrate the relevant systems.

"Our ability to enable companies to maximize the potential from their investment in legacy systems, with fast integration into eBusiness solutions, is a strong selling point," said Menachem Hasfari, chief executive officer of Magic Software. "With a consultancy led approach, we were able to work closely with United Utilities, ensuring that we could establish and meet their business needs."

About United Utilities

United Utilities provides multi-utility connection services across the UK servicing a total of 11 million customers; 1 in 5 of the UK population. As part of its service, it treats and distributes around 2,000 million litres of water a day to, and removes and treats wastewater from, nearly 3 million homes and businesses. It also distributes over 24,000 gigawatt hours of electricity annually to more than 2 million homes and businesses and handles 360 million minutes of telephone calls each month. Stretching across the UK and around the globe, United provides essential services for millions of people every day.

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 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.

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.