Magic Software partners with STS GROUP - a leading ISV in the GRC and Archiving market

STS GROUP delivers an iBOLT enhanced legal records retention solution to the Banque Populaire group

Tuesday, June 24, 2008, Or Yehuda, Israel

Magic Software Enterprises Ltd. (NASDAQ: MGIC) and STS Group (MLSTS – FR0010173518) announces the successful conclusion of a Technology Partnership agreement, enabling STS Group to embed Magic Software’siBOLT business integration technology within its solutions. Following a short period of integration, STS Group delivered its enhanced legal records retention solution to i-BP, the IT subsidiary of Banque Populaire, a French banking network.

STS Group products focus on the legal retention requirements of all types of documents and digital objects, in compliance with European Union (EU) legislation. Its solutions include the whole range of European statutory provisions established over the last six years.

In view of the increasing requirements to associate records retention with business processes and applications, STS Group chose Magic Software’s iBOLT business integration technology to enhance STS Group’s legal retention solution.  The new offering adds orchestration, process monitoring and exception handling capabilities, as well as improved scalability.

“In such a project, which had to provide a major financial institution with a company-wide legal archive in compliance with all regulations, Magic Software’s technology has been a major asset,” said Thierry Blanc, Head of Marketing at STS Group. “We were able to understand and embed it in our solution in a very short time, proving how agile and adaptable it actually is.”

“We are very proud to partner with a truly European vendor such as STS Group,” said Avigdor Luttinger, vice president of corporate strategy at Magic Software Enterprises. “We see a strong traction in Europe with vertically focused vendors, who take advantage of our technology to strengthen their leadership in their respective markets. By addressing EU regulations in combination with records retention, STS Group demonstrates how to take advantage of a pan-European solution.”

Steria, a major French Systems Integrator, was entrusted with the integration of the project at I-BP.

About STS Group

STS Group (http://www.group-sts.com/) is a leading European provider of digital electronic archiving and records retention solutions. These are delivered either on premise or in an ASP mode (archiving outsourced over the Internet). STS Group solutions are used by more than 250 corporate customers in Europe, in all economic sectors.


About Magic Software

Magic Software Enterprises Ltd. (NASDAQ: MGIC) is a leading provider of business integration, application development and deployment tools.  Magic Software has a presence in over 50 countries as well as a global network of ISV’s, system integrators, value-added distributors and resellers, and OEM partners.  The company’s award-winning code-free solutions give partners and customers the power to leverage existing IT resources, enhance business agility and focus on core business priorities.  Magic Software’s technological approach, product roadmap and corporate strategy are recognized by leading industry analysts. Magic Software has partnerships with global IT leaders including SAP, Salesforce.com, IBM and Oracle.  For more information about Magic Software Enterprises and its products and services, visit http://www.magicsoftware.com/.

Magic Software is a subsidiary of Formula Systems in the Emblaze Group of companies.

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.