Menzies Magic Mix Creates Pack by Light

Magic Software Enterprises (NASDAQ:MGIC), a leading provider
of state-of-the-art development and integration technology, announced
today that Menzies Distribution has successfully rolled out 'Pack by Light',
a customized application developed in conjunction with Magic that handles
order lines for more than 15,000 customers each night to ensure the
successful delivery of more than four million newspapers the following morning.

Pack by Light enables managers at Menzies' thirty depots to react to the
night's events, targeting specific routes and resources to ensure
delivery times are met and updating paperwork in real time so that final
packing notes are one hundred percent accurate. For Menzies' retail
customers it is essential that they receive the exact order and on time.
Therefore not only is the accuracy of the pick paramount, but that the
impact of delays such as printing press problems, transport or the
weather are minimised. The alternative is lost newspaper sales for the
retailer.

Frank Coyle, IT Director of Menzies Distribution comments, "Working
closely with Magic we have created a system that is directly suited to
the unique pattern of newspaper distribution in the UK. The flexibility
of Magic's technology has enabled us to provide an enhanced service to
our retailers. We are already planning to trial 'Pack by Light' to our
magazine distribution business in the near future."

Magic's technology provides hi-level Business Process Automation and
Monitoring with its advanced Business Rules Engine that facilitates the
rapid creation and customization of large-scale distributed applications
with complex business logic. Complete application functionality -
including data structures, business rules, program logic and
presentation - is developed entirely in a meta-data driven,
point-and-click studio environment. This eliminates need for coding or
proprietary script, freeing the Menzies and Magic's developers to
concentrate on the business issues that need to be addressed.

Pack by Light not only ensures accuracy and timely delivery, it also
cuts down on paperwork with just one set required for delivery and
returns; it ensures that each parcel is created to a uniform size and
weight, within health and safety guidelines.

Menachem Hasfari, CEO Magic Software said "This ongoing project
demonstrates Magic's commitment to providing its customers with
technologies such as Business Automation and Monitoring that address
specific business requirements and will deliver tangible results in
increased customer satisfaction and higher productivity yields. Magic's
ability to rapidly customize applications has allowed Menzies to
capitalize on their culture of open communication with customers and
staff, placing their suggestions at the center of the development to
maximize workflow efficiency. All of which makes this collaboration
worthy of its instant success."