Btrieve Technologies and Magic Software Enterprises Announce Strategic
Alliance

New Solution Merges Rapid Client/Server Application Development with
High-Performance, Scaleable Database Engines

AUSTIN, TX, January 15, 1996-- Btrieve Technologies, Inc. (BTI) and Magic
Software Enterprises (NASDAQ: MGICF), today announced a strategic alliance
to develop and market a bundled toolkit comprised of BTI's Scaleable SQL
and Btrieve database engines and Magic's development tools. This new
toolkit will provide developers with an integrated solution for the rapid
development of high-performance applications that scale from palmtop to
client/server environments. The partnership will include joint technical
development and product integration. In addition, the companies will
increase their global reach and market penetration through international
co-marketing and channel development programs.

"This partnership emphasizes BTI's commitment to offer world-class database
engines bundled with leading application development tools," said Ron
Harris, president and CEO of BTI.

"In addition to high performance and seamless scalability, developers need
a solution that will allow them to build multi-platform, maintenance-free
applications. And, for the commercial developer, that solution must be
licensed for mass deployment. This new bundled toolkit delivers it all."

"Since Magic's inception there has been a natural synergy between both
companies and their products," said David Assia, chairman and president of
Magic Software. "Together, we are delivering a toolkit that provides
unsurpassed performance and scalability for the rapid development of
client/server applications."

Due to BTI's advanced MicroKernel Database Architecture, the toolkit will
also allow developers to write and deploy relational and navigational
applications that concurrently share access to all data.

BTI's Scaleable SQL and Btrieve database engines are designed to meet the
requirements of commercial developers by providing a unique combination of
high performance, scalability, maintenance-free operations and mass
deployment licensing. Scaleable SQL--BTI's relational product
line--provides application scalability from palmtop systems to
client/server configurations, as well as "maintenance-free" operations and
maximum resource efficiency. Btrieve is the industry-standard navigational
client/server database used by professional developers to build mission-
critical applications. Btrieve provides a maximum degree of programming
control and performance.

Both products are built on BTI's MicroKernel Data Engine, which stores data
in a common model-independent format.

Magic Software's Magic is a highly productive, table-driven rapid
application development tool for building client/server applications.
Magic features a visual programming methodology that is highly portable
across all standard computing environments, from legacy systems to LAN
workgroups.

Many of the largest Btrieve applications in the world are developed in
Magic at organizations such as Whirlpool Inc., Keyport Life Insurance and
VisionTek.

BTI is a leading provider of information management systems for commercial
software developers. BTI's mission is to offer world-class database
engines specifically built to be bundled with high volume client/server
applications.

Headquartered in Austin, Texas, BTI is an international organization with
operations in Europe and Japan. BTI's Japanese subsidiary-- Btrieve
Technologies Japan, LTD--is a joint venture with several companies
including Novell Japan, LTD. BTI is the recipient of many industry awards
including the DB/Expo RealWare award and several BYTE Magazine Reader's
Choice awards.

Magic Software Enterprises develops, publishes, markets and supports MAGIC,
a highly productive, table-driven cross platform Rapid Application
Development system for developing client and server solutions.

Magic is used by corporate MIS departments and a wide range of solutions
partners including value-added resellers, systems integrators,
consultants, independent developers and packaged software publishers.
Magic has won numerous development awards including the Client/Server
Application Challenge (USA), the EXE Software Developers Challenge (UK),
and four consecutive victories at the annual International Droege
Developers Competition (USA).

Magic Software Enterprises develops, publishes, markets and supports Magic,
a highly productive, table-driven cross-platform Rapid Application
Development system for developing client and server solutions. Magic is
used by corporate MIS departments and a wide range of solutions partners
including value-added resellers, system integrators, consultants,
independent developers and packaged software publishers. Magic has won
numerous development awards including the Client/Server Application
Challenge (USA), the EXE Software Developers Challenge (UK), and four
consecutive victories at the annual Droege Developers Competition (USA).
Magic Software Enterprises Ltd. is located at 5 Haplada Street, Or-Yehuda
60218. Tel. 972-3-538-9292. Fax. 972-3-538-9333. Magic Software
Enterprises Inc. is located at 1200 Main Street, Irvine, CA 92714. Tel.
714-250-1718. Fax. 714-250-7404. Magic Software Enterprises is located on
the World Wide Web at http://www.magic-sw.com.
 
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