Steve Worthington President Partners in Commerce, Inc. (508) 879-5009 firstname.lastname@example.org PARTNERS IN COMMERCE USES MAGIC TO CREATE INNOVATIVE WEB SELLING TECHNOLOGY Offers Small- to Medium-Size Companies Inexpensive and Quick Way To Web-Enable Their Businesses BOSTON, MA (May 25, 2000) - Partners in Commerce, Inc. (PIC) today introduced an innovative technology that enables traditional small- to medium-sized companies to quickly and inexpensively obtain a Web presence to market and sell their products and services. ClubSelling.com includes a catalog builder, as well as secure order and shopping cart technologies, while CorpSelling.com adds customization features designed to appeal to larger-volume small businesses. Both solutions were built using Magic Software Enterprises' (Nasdaq: MGIC) state-of-the-art application development technology, Magic Enterprise Edition V.8.3 for Linux. PIC's Clubselling Technology PIC's patent pending "ClubSelling" technology offers two levels of solutions. ClubSelling.com is an externally hosted Website that contains the entire infrastructure required to build and maintain on-line catalogs, accept and process orders using shopping cart technology, and securely process credit card transactions. For businesses with no current Web presence, ClubSelling.com acts as a one-stop shop for whatever level of Web presence the business desires - from a simple homepage all the way through to full transactional processing. For businesses with an existing Web presence, ClubSelling.com's facilities are available via a link from any existing Website, and can be made available on an "as needed" basis to provide anything from an on-line catalog with email ordering facilities to full online order processing that includes sophisticated search capabilities. "With its easy affordability and implementation, ClubSelling.com also presents companies an ideal way to test the feasibility of selling their products and services over the Web," said Steve Worthington, president of PIC. "And, the additional customization offered through CorpSelling.com allows any business to assimilate the Web business into a more traditional legacy system." CorpSelling.com, an enhanced version of ClubSelling.com, adds a complete array of customization services and links. Designed to appeal to larger-volume small businesses, it provides increased flexibility and easy integration with existing front- and back-office systems. Following an initial setup fee of $150 (which covers establishing an initial account as a ClubSelling.com member, a homepage template, catalog templates, and display options for catalog presentation), ClubSelling.com's business model is based upon usage. For as little as $50 per month, businesses can process up to 1,000 transactions (customer visits) per month. The initial setup fee for CorpSelling.com is slightly higher depending upon the level of customization required. Interested businesses are invited to visit the ClubSelling.com Website, http://www.clubselling.com, for a demonstration of the system, including a fully functional demo company. The Magic of Clubselling PIC's ClubSelling technology was built using Magic Software Enterprises' Magic Enterprise Edition V.8.3 for Linux to provide the most robust and flexible service offering available to partner companies. Having initially developed and prototyped the concept in a Windows NT environment, PIC evaluated a number of options to deploy an industrial strength version of their software before undertaking a major launch of the facilities. According to Worthington, Magic and Linux were the logical combination to get the robust system up and running quickly without a massive investment in hardware and time. "Magic for Linux was the perfect choice for what we are trying to achieve with ClubSelling.com and CorpSelling.com," said Worthington. "It allows us to rapidly create sophisticated e-commerce offerings for small- to medium-sized businesses at lower than average costs. In addition, because of its state-of-the-art merge facilities, we are able to rapidly customize HTML templates. And Magic's ability to seamlessly integrate with legacy systems, lets us provide maximum functionality and maximum value to partner companies under any circumstances." Currently, Magic is offering its Magic Enterprise Edition V.8.3 for Linux development technology at a special introductory price of $299. In addition, the Company also markets and sells Magic eMerchant, a sophisticated business-to-business e-commerce solution, for Linux and most other commercial platforms. Businesses can download demo versions of Magic's Linux software at its Website, http://www.magic-sw.com/linux. Information regarding Magic eMerchant and the Company's other customer relationship management (CRM) solutions is available at http://www.magic-sw.com/crm. About Partners in Commerce, Inc. PIC is a privately funded .com startup, positioned as a business-to-business application service provider. The Company's mission is to provide low cost, sophisticated, reuseable e-commerce and e-business transaction engines based upon Magic technology. PIC is a Magic Solutions Partner with more than 10 years of experience developing solutions using Magic technology. It is located in Millis, Mass., telephone (508) 879-5009, fax (508) 879-3117, http://www.ClubSelling.com. About Magic Software Enterprises Magic Software Enterprises, a member of the Formula Group (Nasdaq: FORTY), develops, markets and supports software development and deployment technology that enables enterprises to accelerate the process of building and deploying applications that can be rapidly customized and integrated with existing systems. Magic technology, applications and professional services are available through a global network of subsidiaries, distributors and Magic solutions partners in approximately 50 countries. The Company's North American subsidiary is located at 1642 Kaiser Avenue, Irvine, Calif., 92614, telephone (949) 250-1718, fax (949) 250-7404, http://www.magic-sw.com. The Formula Group is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and producing computer-based solutions.