Magic Software Brings Award-Winning E-Commerce Solution to Linux.

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 10, 1999--

Magic Software Enterprises Inc. (NASDAQ:MGIC) Tuesday announced that it has successfully ported its award-winning business-to-business e-commerce solution, eMerchant(TM), to the Linux platform.

Combining enterprise-level processing power and security, with rapid integration with back-end corporate systems, Magic eMerchant(TM) for Linux is a scalable e-commerce solution that can be quickly enabled to give companies a competitive advantage in today's Internet economy. The solution, which supports both Informix and Oracle databases and runs on all of the latest commercial versions of Linux, is available immediately from Magic.

Magic eMerchant(TM) for Linux

Magic eMerchant(TM) for Linux (eMerchant(TM)) provides sophisticated transaction processing as well as innovative order entry capabilities that enable businesses to sell more products to more buyers to increase revenues. Its state-of-the-art customer profiling capabilities enable businesses to tailor customer offerings based upon specific behavioral criteria. This ability to more directly target customers is key to increasing customer satisfaction and corporate revenues in today's marketplace.

"Magic eMerchant(TM) for Linux has the ability to store past customer orders, as well as present detailed and summarized versions of a customer's purchase folders. It also can make suggestions based upon a customer's past history and a product's current availability," said Jack Dunietz, chief executive officer of Magic. "In short, it can collect, update, sort and analyze customer data to provide businesses the type of critical information needed to drive future profitability."

Another important feature of eMerchant(TM) is its industrial strength security. eMerchant(TM) adheres to all Web Authorization and Control standards (WAC) by uniquely identifying each customer who logs in, and limiting application access based upon specific sets of user criteria. eMerchant(TM) also includes Magic's innovative Web Online technology, which makes it easier for customers to place and update orders, and makes it possible for businesses to increase their order processing capacity. In addition, eMerchant(TM) integrates easily and rapidly with back office systems to significantly reduce the amount of time required for companies to Web-enable their businesses.

"eMerchant(TM)'s ability to quickly and transparently connect to many databases and servers translates into an easy-to-implement e-commerce solution with the capability to scale rapidly to accommodate business change and growth," added Dunietz.

eMerchant(TM), which already is being used by major supermarket and other retail vendors, as well as companies in the fruit and distribution industries, received a Best of Show award at the Internet Commerce Expo in Boston last March when the product was first introduced.

Magic Software Enterprises

Magic Software Enterprises offers the most productive, state-of-the-art development technology, customizable applications, and services for cost-effectively solving business problems. Using Magic, companies can efficiently leverage their existing resources and take advantage of emerging technology.

Hundreds of companies around the world have deployed Magic-based e-commerce solutions. They include everything from business-to-consumer applications for retail operations to business-to-business applications for manufacturing and distribution concerns. They all share several key characteristics: rapid time-to-market, easy and transparent integration with existing systems, high-level functionality and security, and scalability.

Magic technology, applications and services are available through a global network of subsidiaries, distributors and solutions partners in more than 50 countries. The company is located at 1642 Kaiser Ave., Irvine, Calif., 92614, telephone 949/250-1718, fax 949/250-7404, http://www.magic-sw.com.

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 demand, the impact of competitive products and pricing, changing economic 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.