Magic Software Purchases Additional 25% of Shares in Magix Integration to Hold 100% of its South African Distributor

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January 9, 2012
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Magic Software Purchases Additional 25% of Shares in Magix Integration to Hold 100% of its South African Distributor

Company Completes the Acquisition of a 100% Shareholding, Valued at $2.8 Million, to Extend its Presence in South Africa

OR YEHUDA, Israel, January 9, 2012/PRNewswire-FirstCall/ --

    Magic Software Enterprises Ltd [http://www.magicsoftware.com ]. (NASDAQ: MGIC), a
global provider of mobile [http://www.magicsoftware.com/en/solutions/?catID13 ] and
cloud-enabled application [http://www.magicsoftware.com/en/products/?catIDp ] and
business integration [http://www.magicsoftware.com/en/products/?catIDA ] platforms,
today announced that it has purchased additional shares in its South African distributor,
Magix Integration [http://www.magix.co.za ], thereby completing the acquisition of a 100%
shareholding in the company at a total value of $2.8 million. The sellers stand to receive
an additional $400,000 providing that the company reaches specific targets for performance
in 2011.

    Commenting on the acquisition, Amit Birk, VP M&A Magic Software, said: "We are pleased
to have successfully completed our acquisition of a 100% shareholding in Magix
Integration, in keeping with our policy of obtaining total control of all our
subsidiaries. This move reasserts our strong faith in the future growth of the South
African market."

    About Magix Integration

    Magix Integration specializes in software integration and application development,
implementing a combination of tools and disciplines to meet complex and large-scale
software requirements. Magix Integration strives to listen to customer needs, provide
value at every step of the engagement process, and solve problems with innovation and
simplicity.

    For more information, visit http://www.magix.co.za.

    About Magic Software

    Magic Software Enterprises Ltd. [http://www.magicsoftware.com ] (NASDAQ: MGIC
[http://www.google.com/finance?client=ob&q=NASDAQ:MGIC ]) is a global provider of mobile
and cloud-enabled application and business integration platforms.

    For more information, visit http://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.

   
    Press Contact:

    Tania Amar, VP Global Marketing

    Magic Software Enterprises
    Tel: +972-(0)3-538-9300
    tania@magicsoftware.com

Source: Magic Software Enterprises Ltd

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