Magic Software Grants University of Nebraska-Lincoln $1 Million in Software for Research Center

Or Yehuda, Israel; March 22, 2007 — Magic Software Enterprises (Nasdaq:MGIC), an IBM Business Partner, and the University of Nebraska-Lincoln (UNL) announced today a grant to the University of $1 million in business process and development software in support of a worldwide hub for advanced teaching and remote access by other universities on IBM's premier "all-in-one" System i business computing platform.

The grant by Magic Software to UNL will enable classroom teaching, special topics and research in business process management, enterprise application integration and application development by faculty, staff and students of UNL. This announcement follows a joint program announced last year whereby IBM will work with a team of UNL professors to design new curricula in the College of Business Administration for Management Information Systems (MIS), including courses on topics such as "driving business innovation through IT simplification" and "managing higher system utilization." These teaching modules may be used by IBM's greater Academic Initiative community.

"We are pleased to see our collaboration with IBM results in the formation of new relationships with IBM business partners such as Magic Software," said Keng Siau, E.J. Faulkner Professor of Management Information Systems and Director of the UNL-IBM Global Innovation Hub. "We are eager to implement innovative information technology solutions in our academic programs with business partners including Magic Software Enterprises"

The software provided will support the newly created UNL-IBM Global Innovation Hub for its students and faculty, including a System i and other computer equipment provided to the University by IBM.

"Magic Software's grant to the University of Nebraska builds on the work of the IBM Academic Initiative for System i to enable the University to act as a hub for the advancement of innovative solutions in areas such as business process improvement," said Mark Shearer, general manager, IBM System i. "The presence of software companies like Magic Software as part of the community of software providers supporting System i enhances collaboration between IBM and the University."

Magic Software Enterprises' iBOLT™ Integration Suite solves common business problems that occur when systems and data are not integrated in smooth running business processes. By automating connectivity and eliminating the need for custom integration programs to be written, iBOLT is designed to routinely manage exceptions to normal business processes, improve response times, and reduce complexity. Included in the grant is a version of iBOLT software called JDE Connect, which is specifically designed to integrate Oracle JD Edwards financial software running on System i with overall business processes. UNL is home to the JD Edwards Honors Program in Computer Science and Management.

David Assia, Chairman & CEO of Magic Software Enterprises, applauds the University's collaboration with IBM and Magic Software. "The University of Nebraska is setting a new standard for service to the educational needs of the business community for graduates prepared to take on the real challenges of today's business environment," he explained. "Thousands of companies stand to benefit by hiring graduates who come through the University better prepared to optimize and enhance real-world business processes using leading technology and methods."

About UNL College of Business Administration The College of Business Administration is a comprehensive business school that houses the traditional departments of Economics, Finance, Management and Marketing, as well as the School of Accountancy, the Actuarial Science Program, and the Bureau of Business Research. It is home to over 3,000 undergraduate and graduate students. All classrooms are fully equipped with digitized multimedia equipment and information technologies, as well as advanced teaching aids such as in-class simulation. The building has wireless computing capabilities for students, faculty and staff. Several computer labs and computer classrooms complete the technological facilities which include new computers, group and individual work areas and training. The Management Department offers leading edge MIS courses for undergraduate, masters and doctoral students. For more information, please visit:

www.cba.unl.edu

About IBM
For more information about IBM, please visit http://www.ibm.com

About Magic Software Enterprises
Magic Software Enterprises (NASDAQ: MGIC) has been a leader in enterprise application development, deployment and integration technology for more than two decades. The company's service-oriented platform is used by companies worldwide to develop, maintain, and deploy both legacy and new business solutions, while integrating these applications across both internal and external, heterogeneous environments. Magic Software’s platform-independent methodology lets companies achieve agility by quickly assembling composite applications, allowing programmers to create services and architects and business analysts to orchestrate and reuse these services to enable business processes. Through partnerships with industry leaders such as IBM and SAP and more than 2500 ISVs worldwide, Magic Software technology is used by more than 1.5 million customers around the globe.

For more information on Magic Software Enterprises and its products and services, visit www.magicsoftware.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 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.

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