Revised:  06/23/2007

SPdH Select HERMES Logistics Technologies Air Cargo Management System

Contact:
Barry Zigner
CEO
HERMES Logistics Technologies
+44 (1344) 667052

bzigner@hermes-cargo.com

SPdH Select HERMES Logistics Technologies Air Cargo Management System

HLT’s HERMES provides greater management control, increased efficiency and improved integration for airline businesses

Bracknell, United Kingdon, (March 24, 2005) - HERMES Logistics Technologies, a leading provider of state-of-the-art Air Cargo Management Solutions and a Subsidiary of Magic Software Enterprises Limited (NASDAQ: MGIC), announced today the successful implementation of its flagship HERMES product, at TAP Serviços Portugueses de Handling, S.A. (SPdH) in a deal worth US$ 1.4million over 4 years.

TAP SPdH goes for hosted service

Portugal based SPdH is the privatised ground handling division of Transportes Aéreos Portugueses (TAP). Since privatisation last year, SPdH has worked to increase both its customer base and the volume of cargo it is handling. To compete successfully in the air cargo market, SPdH required a system that would modernize its entire cargo handling operation to achieve its goal of becoming the top performing cargo handler in the Iberian Peninsular and other Portuguese speaking countries.

SPdH contracted outside consultants to evaluate several different systems. In addition to wanting improved efficiency and greater control over its entire cargo operation, SPdH wanted to avoid the initial overhead costs associated with implementing the new system internally.   HLT is already providing a hosted version of Hermes for several other customers making it the ideal solution for SPdH.  The first site went live in Porto in January and a second implementation in scheduled for completion in Lisbon in April 2005.

HERMES enables SPdH to handle increased volumes of cargo without any further increase in staff and the strengthened cargo tracking and management resulting from the new solution will help SPdH to increase its service standards and reduce failures  Customers of SPdH are already benefiting from the strengthened improved levels of customer service.  Chris Notter, Regional Manager of Lufthansa Cargo, one of SPdH’s key customers said “Over the last 3 years we (Lufthansa Cargo) have cemented a solid performance partnership with Tap – SPdH. The level of cooperation and commercial understanding has continually improved. The approach and positive attitude from the management team along with the respective performance teams has been very encouraging. The only stumbling blocks have been the IT shortfalls and the infrastructure of both OPO and LIS Airports in respect of facilities. With the HERMES system, the IT solution has now been successfully delivered. The employees appear motivated and encouraged by this investment which all impacts on the customers as they see positive attitudes and more time and personal service efficiencies. With the upcoming roll out in LIS we anticipate further positive impact. “

Hermes is a comprehensive solution for cargo handling and inventory control designed to increase a company’s productivity and efficiency.  It is already in use by cargo handlers worldwide including Menzies World Cargo, Europe’s fastest growing independent cargo handling company, PACTL, the leading cargo handler to Shanghai Airport and Icelandair Cargo, Iceland’s number one cargo handler,

Concluding, Barry Zigner CEO of HERMES Logistics Technologies said “The combination of HLT’s expertise in the cargo handling market, the customer orientated approach of HERMES and our proven integration technology that is critical for the deployment of solutions like HERMES is helping us deliver business solutions that are yielding significant and immediate return on investment.”

About HERMES Logistics Technologies
HERMES Logistics Technologies , a subsidiary of Magic Software Enterprises (Nasdaq: MGIC), develops, markets and supports software solutions that enables independent cargo Ground Handling Agents and Airlines gain competitive edge by increasing service levels and operational efficiency while reducing operational costs.. HLT products provide Real-time capability and availability of information together with unique profiling ability that allows cargo handlers to provide measurable, accountable and tailored levels of services to their customers.  The Company's HQ offices are located in the United Kingdom, Centennial Court, Easthampstead Road, Bracknell RG12 1YQ, +44-1344-667052.