Magic Software and IMG Americas Partner to Advance SAP® Business One Solutions

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IMG’s business engineering services and Magic’s iBolt Integration Suite will accelerate time-to-value of SAP Business One.

demonstrates a deepening of commitment and extension of our combined capabilities to customers worldwide

The Information Management Group (IMG), a provider of innovative business engineering services, and Magic Software Enterprises, Inc. (NASDAQ: MGIC), a leading provider of state-of-the-art business integration and development technology, today announced an alliance that will advance SAP Business One implementations in North America. IMG Americas is an authorized reseller and implementation partner for SAP Business One, SAP’s affordable integrated management solution. Magic Software delivers the iBolt Special Edition for SAP Business One, a suite of advanced development tools that easily integrate a variety of systems and application with SAP Business One. The announcement was made at SAPPHIRE 2006, the SAP international customer conference where IMG Americas is exhibiting (Pod #21; Orange County Convention Center).

“Both mid-market and large enterprises with local offices and subsidiaries worldwide are increasingly looking to SAP Business One to consolidate business information and streamline processes while containing or lowering the costs of doing business,” noted Larry Perlov, vice president of IMG Americas’ SAP Business One division. “The push is on for SAP Business One implementations and we’re delighted to be partnering with Magic to ensure that customers realize the benefits of SAP Business One fully integrated with all of their systems and processes.”

Using the iBolt Integration Suite, IMG Americas will be able to extend the value of their SAP implementations with capabilities such as extended workflows, composite applications, multi-channel access, unlimited interoperability and integration with other systems and platforms, as well as business activity and performance monitoring. “These capabilities will be especially compelling in our SAP Business One implementations in which we are driving the value of SAP R/3 right into the field level,” said Perlov.

With IMG having established an iBolt Competence Center in Europe and both companies having forged partnerships in Europe and in Asia Pacific, the North American agreement “demonstrates a deepening of commitment and extension of our combined capabilities to customers worldwide,” said Oren Inbar, president and CEO at Magic Software Enterprises, Inc. “Our SAP solutions integration experience complements IMG’s SAP business engineering expertise spanning SAP Business One, All-in-One, and mySAP,” continued Inbar. “Moreover, IMG has established a proven track record with SAP Business One implementations and we will work to further advance those engagements where iBolt Special Edition for SAP Business One can be part of the solution. I’m confident that our combined know-how will come to bear on very successful SAP Business One implementations.”

About Magic Software Enterprises

Magic Software provides a Service Oriented Platform (Application Integration, Business Process Management and Composite Applications) to rapidly develop, change and deploy solutions integrated with existing and legacy systems. Magic Software enables enterprises to increase their agility and rapidly adapt to business changes, by aligning their IT with their business operations, accelerating the evolution to a Service Oriented Architecture through Application Integration and Business Process Management. Our customers develop and deploy applications that are rapidly customized and integrated with existing and legacy systems. Our products are built on 20 years of R&D and customer experience, leading the industry in Composite Application Development. Magic technology, products and professional services are available through a global network of subsidiaries, distributors and over 2500 Magic Solutions Partners in approximately 50 countries. The Company's EMEA HQ offices are located in the Netherlands, Pelmolen 17 3994XX Houten, 0031-30.6566266. The company's North American subsidiary is located at 23046 Avenida de la Carlota Suite 300 Laguna Hills, CA 92653, telephone (800) 345-6244, (949) 250-1718, fax (949) 250-7404. http://www.magicsoftware.com

About IMG

The Information Management Group (IMG) is a leading global provider of innovative business engineering services for small- to mid-sized companies that want business results from their SAP solutions. Specializing in consulting services that align people, processes, and systems with strategies, IMG is a certified SAP Partner with hundreds of successful SAP implementations worldwide. Founded in 1989, IMG is headquartered in St. Gallen, Switzerland and employs over 600 professionals throughout Europe, Asia, the United Kingdom and the United States. IMG Americas is headquartered outside Philadelphia and has offices in the Greater Boston and Chicago areas as well as in Atlanta (GA) and Mountain View (CA). For more information on IMG Americas, call +1 888-446-4872. URL: http://www.img.com/usa.

All product and service names mentioned are the trademarks of their respective companies.

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