Formula Systems -- 1985 -- Ltd. Restructures andAnnounces Sale of Its Subsidiary, Nikuv...

HERZLIYA, Israel--(BUSINESS WIRE)--April 27, 1999--

Formula Systems (1985) Ltd. ("Formula") (Nasdaq:FORTY), a leading international provider of information technology products and services, announced today that it has approved the sale of its 60 per cent share in Nikuv Computers Ltd.,

ForSoft Ltd., in a related announcement, announced the formation of ForSoft Inc., to further expand its IT capabilities and presence in the United States. ForSoft Inc., has approved the acquisition of the IT consulting activities of Mentortech, Inc., (OTC BB:MNTK), an affiliate of the Formula Group for approximately $1.8 million. Formula Systems Ltd., is initiating a restructuring in its group of companies to simplify its corporate structure in an effort to increase efficiency and enhance shareholder value.

Gad Goldstein, President of Formula Systems Ltd., noted, "This restructuring is a first step in our desire to continue to enhance shareholder value by creating larger subsidiary companies with greater efficiencies to build upon our successful international IT operations over the next several years. The establishment of ForSoft Inc., will strengthen ForSoft's presence in the United States with the acquisition of the IT consulting services of Mentortech Inc. The acquisition of Nikuv Computers will enable ForSoft to penetrate the local Israeli market in an important vertical, niche market dedicated to the finance area with Nikuv's software product "TAFNIT," which is used by large and mid-sized companies for their financial and logistics management."

Formula Systems (1985) Ltd., is an international information technology company principally engaged, through its subsidiaries and affiliates, in providing software consulting services, developing proprietary software products and providing computer-based business solutions. Formula Systems (Nasdaq:FORTY), is the largest public IT group in Israel.

This press release contains forward-looking statements. Such statements involve risks that may cause actual results to differ materially. These risks and uncertainties include, but are not limited to, market demand for the Company's products, successful implementation of the Company's products, competitive factors, the ability to manage the Company's growth and the ability to recruit additional personnel.