IRVINE, Calif.--(BUSINESS WIRE)--June 17, 1999--

Magic Software Enterprises Inc. (Nasdaq:MGIC) Thursday introduced Magic Web Online ("Web Online"), an innovative, new Java-based technology that brings interactive processing to Web applications.

It provides field-level event handling that effectively eliminates the traditional Web page "submit button" and reduces the overhead related to updating Web pages for each transaction.

Web Online

Web Online gives end-users the look and feel of an online application. For an HTML data entry application, this means data fields can be updated without the need to submit and retrieve an HTML page for each transaction -- normally a very slow and cumbersome process in the HTML environment. Fields can be updated and validated "on the fly" without updating the entire page.

Dr. Wolfgang Martin, vice president of Application Delivery Strategies for META Group, explained, "Users moving from a Windows-client to a Web-client often get disappointed. The Web application does not provide the look and feel of an interactive session. It is rather a static page, and data fields are updated with the heavy overhead of submitting Web pages for each transaction.

"There is no doubt that customers will greatly appreciate vendor solutions addressing this gap," Martin continued. "META Group sees Magic Software Enterprises as one of the first companies to enable building and deploying Web Online technology."

Web Online is the latest of several new state-of-the-art developments being introduced by Magic under its "e-Commerce -- We Deliver" strategy. That strategy is focused upon bringing the most productive technologies and solutions for e-commerce to platforms such as AS/400 and Linux. Web Online will be included in the next version of the Magic software environment. In addition, a demo of the technology is available through the Magic Web site, http://www.magic-sw.com.

"The purpose of Web Online is to maintain the browser's low cost of ownership while providing interactive, event-driven functionality," said Jack Dunietz, chief executive officer of Magic. "It represents one more way Magic is working hard to deliver businesses all of the advantages necessary to stay ahead of the technology curve and manage their resources more effectively to stay on top of their competition."

Magic Software Enterprises

Magic Software Enterprises offers the most productive, state-of-the-art development technology, customizable applications, and services for cost-effectively solving business problems. Using Magic, companies can efficiently leverage their existing resources and take advantage of emerging technologies.

Magic technology, applications and services are available through a global network of subsidiaries, distributors and solutions partners in more than 50 countries. The company is located at 1642 Kaiser Avenue, Irvine, Calif., 92614, telephone 949/250-1718, fax 949/250-7404, http://www.magic-sw.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 on a number of factors including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic 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.