<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>v192104_ex10-1.txt
<DESCRIPTION>PRESS RELEASE
<TEXT>
                                                                    EXHIBIT 10.1

PRESS RELEASE

    Magic Software Reports Continued Strong Growth for Second Quarter of 2010

 Company reports 58% year-over-year increase in revenues and doubled net income

Or-Yehuda, Israel, August 2nd, 2010 - Magic Software Enterprises Ltd. (NASDAQ:
MGIC), a global provider of on-premise and cloud-enabled application platforms
and business integration solutions, today announced its financial results for
the second quarter ended June 30, 2010. All dollar amounts are quoted in US
Dollars.

Financial Highlights for the Second Quarter and Six-Month periods ended June 30,
2010

o     Second quarter revenues increased 58% year-over-year;

o     Operating income for the second quarter and first half more than doubled
      compared to the comparable periods last year;

o     Operating income for the first half of 2010 doubled to $3.8 million,
      compared to the same period last year;

o     Net income for the first half of 2010 doubled to $3.8 million, compared to
      the same period last year;

o     Operating cash flow for the first half increased by 85% to $8.7 million
      compared to the same period last year.

Results

For the second quarter ended June 30, 2010, total revenues were $21.5 million,
with net income of $1.9 million, or $0.06 per fully diluted share. This compares
with revenues of $13.6 million and net income of $1.1 million, or $0.03 per
fully diluted share, for the same period last year.

Operating income was $2.1 million, or $0.06 per fully diluted share, for the
second quarter of 2010. This compares to operating income of $1.0 million, or
$0.03 per fully diluted share, for the same period a year ago.

For the six-month period ended June 30, 2010, total revenues were $41.2 million,
with net income of $3.8 million, or $0.12 per fully diluted share. This compares
with revenues of $27.4 million and net income of $1.8 million, or $0.06 per
fully diluted share, for the same period last year.

Operating income was $3.8 million, or $0.12 per fully diluted share, for the
first half of 2010. This compares to operating income of $1.7 million, or $0.05
per fully diluted share, for the same period a year ago.

Total cash, cash equivalents and short-term investments as of June 30, 2010 was
$25.8.

Management Commentary
Commenting on the results, Guy Bernstein, acting chief executive officer of
Magic Software, said: "I am pleased to report that the positive momentum and
strong growth continued in the second quarter with increased demand for our
product and service offering in all regions."



<PAGE>


Summary of the Quarter

o     New customers and license sales for uniPaaS and iBOLT, particularly in
      Japan, Germany and France have increased;

o     The new version of uniPaaS application platform, version 1.9, providing
      enhanced RIA, Cloud and Mobile capabilities was released in April.

o     The latest iBOLT version 3.2 with new and improved connectors for
      Microsoft SharePoint 2010, Microsoft Dynamics CRM, Salesforce.com and HL7
      was released in May.

o     Significant media momentum for Magic's Cloud and Mobile enterprise
      application platform continues to build and include positive coverage from
      TechWorld, CloudVision, CIO, publicTechnology.net, eWeek.com, BCS and CRN.

o     The number of new partners continued to increase. New partners signed on
      in the quarter include: Relational SA in Greece, ViCi Consulting in the
      Netherlands, Osiatis in France, Wizrom Software in Romania and Connect
      Distribution in Poland.


Non-GAAP Financial Measures

This release includes non-GAAP operating income, net income, basic and diluted
earnings per share and other non-GAAP financial measures. These non-GAAP
measures exclude the following items:

-     Amortization of purchased intangible assets;

-     In-process research and development capitalization and amortization and;

-     Equity-based compensation expense.

Magic Software's management believes that the presentation of non-GAAP measures
provide useful information to investors and management regarding financial and
business trends relating to the Company's financial condition and results of
operations as well as the net amount of cash generated by its business
operations after taking into account capital spending required to maintain or
expand the business.

These non-GAAP financial measures are not in accordance with, or an alternative
for, generally accepted accounting principles and may be different from non-GAAP
financial measures used by other companies. In addition, these non-GAAP
financial measures are not based on any comprehensive set of accounting rules or
principles. Magic Software believes that non-GAAP financial measures have
limitations in that they do not reflect all of the amounts associated with Magic
Software's results of operations as determined in accordance with GAAP and that
these measures should only be used to evaluate Magic Software's results of
operations in conjunction with the corresponding GAAP measures.

Please refer to the Reconciliation of Selected Financial Metrics from GAAP to
Non-GAAP tables below.

                                    -- ## --

About Magic Software

Magic Software Enterprises Ltd. (NASDAQ: MGIC) is a global provider of
on-premise and cloud-enabled application platform solutions - including full
client, rich internet applications (RIA), mobile or Software-as-a-Service (SaaS)
modes - and business and process integration solutions. Magic Software has 13
offices worldwide and a presence in over 50 countries with a global network of
ISVs, system integrators, value-added distributors and resellers, as well as
consulting and OEM partners. The company's award-winning, code-free solutions
give partners and customers the power to leverage existing IT resources, enhance
business agility and focus on core business priorities. Magic Software's
technological approach, product roadmap and


<PAGE>



corporate strategy are recognized by leading industry analysts. Magic Software
has partnerships with global IT leaders including SAP AG, salesforce.com, IBM
and Oracle. For more information visit about Magic Software and its products and
services, visit www.magicsoftware.com, and for more about our industry-related
news, business issues and trends, read the Magic Software Blog.

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 upon a
number of factors including, but not limited to, risks in product and technology
development, market acceptance of new products and continuing product
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.


Magic is the trademark of Magic Software Enterprises Ltd. All other trademarks
are the trademarks of their respective owners.

Company Contact:


KCSA Strategic Communications
Marybeth Csaby / Rob Fink
212-896-1236 / 212-896-1206
magicsoftware@kcsa.com


<PAGE>


MAGIC SOFTWARE ENTERPRISES LTD.
CONSOLIDATED STATEMENTS OF INCOME
U.S. DOLLARS IN THOUSANDS (EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                            Three months ended     Six months ended
                                                 June 30,             June 30,
                                            ------------------    ------------------
                                              2010      2009       2010       2009
                                            -------    -------    -------    -------
                                                 Unaudited             Unaudited
<S>                                          <C>        <C>        <C>        <C>
Revenues ................................    21,468     13,595     41,179     27,365
Cost of Revenues ........................    12,666      6,443     23,913     13,180
                                            -------    -------    -------    -------
Gross profit ............................     8,802      7,152     17,266     14,185
                                            -------    -------    -------    -------
Research and development, net ...........       409        260      1,040        599
Selling, marketing and general and
    administrative expenses .............     6,325      5,937     12,404     11,891
Total operating costs and expenses ......     6,734      6,197     13,444     12,490
                                            -------    -------    -------    -------
Operating income ........................     2,068        955      3,822      1,695
                                            -------    -------    -------    -------
Financial expenses, net .................      (429)       (78)      (316)       (14)
Other income, net .......................        19        286         80        286
                                            -------    -------    -------    -------
                                            -------    -------    -------    -------
Income before taxes on income ...........     1,658      1,163      3,586      1,967
Taxes on income .........................      (246)        76       (168)       166
                                            -------    -------    -------    -------
Net income ..............................     1,904      1,087      3,754      1,801

Net earnings per share attributable to
   Magic Software:
Basic ...................................      0.06       0.03       0.12       0.06
                                            =======    =======    =======    =======
Diluted .................................      0.06       0.03       0.12       0.06
                                            =======    =======    =======    =======

Weighted average number of shares used in
     computing net earnings per share

        Basic ...........................    31,982     31,894     31,982     31,894
                                            -------    -------    -------    -------
        Diluted .........................    32,507     32,009     32,429     31,973
                                            -------    -------    -------    -------
</TABLE>

<PAGE>

MAGIC SOFTWARE ENTERPRISES LTD.
RECONCILIATION BETWEEN GAAP AND NON-GAAP
STATEMENTS OF INCOME FOR COMPARATIVE PURPOSES
U.S. DOLLARS IN THOUSANDS (EXCEPT PER SHARE DATA)

<TABLE>
<CAPTION>
                                                   Three months ended     Six months ended
                                                        June 30,              June 30,
                                                   ------------------    ------------------
                                                    2010       2009       2010       2009
                                                   -------    -------    -------    -------
                                                        Unaudited             Unaudited
<S>                                                  <C>          <C>      <C>        <C>
GAAP operating income .........................      2,068        955      3,822      1,695
Amortization of capitalized software
   and other intangible assets ................      1,007        881      1,957      1,750
Capitalization of software development ........       (856)      (830)    (1,567)    (1,585)
Stock-based compensation ......................         23         69         59        125
                                                   -------    -------    -------    -------
Total adjustments to GAAP .....................        174        120        449        290
                                                   -------    -------    -------    -------
Non-GAAP operating income .....................      2,242      1,075      4,271      1,985
                                                   =======    =======    =======    =======


GAAP net income ...............................      1,904      1,087      3,754      1,801
Total adjustments to GAAP as above ............        174        120        449        290
                                                   -------    -------    -------    -------
Non-GAAP net income ...........................      2,078      1,207      4,203      2,091
                                                   =======    =======    =======    =======


Non-GAAP basic net earnings per share .........       0.07       0.04       0.13       0.07
                                                   =======    =======    =======    =======
Weighted average number of shares used in
   computing basic net earnings per share .....     31,982     31,894     31,982     31,894
                                                   -------    -------    -------    -------

Non-GAAP diluted net earnings per share .......       0.06       0.04       0.13       0.07
                                                   =======    =======    =======    =======
Weighted average number of shares used in
   computing diluted net earnings per share ...     32,552     32,123     32,476     32,035
                                                   -------    -------    -------    -------
</TABLE>



<PAGE>


MAGIC SOFTWARE ENTERPRISES LTD.
CONSOLIDATED BALANCE SHEETS
U.S. DOLLARS IN THOUSANDS

<TABLE>
<CAPTION>
                                                                    June 30,   December 31,
                                                                      2010         2009
                                                                     ------       ------
                                                                  (Unaudited)
<S>                                                                  <C>          <C>
ASSETS
CURRENT ASSETS:
     Cash and cash equivalents ...............................       21,071       24,350
     Short-term bank deposits ................................        1,106       13,838
     Available-for-sale marketable securities ................        3,593        3,680
     Trade receivables, net ..................................       15,453       12,004
     Other accounts receivable and  prepaid expenses .........        3,190        3,869
     Current assets of discontinued operation ................         --             27
                                                                     ------       ------
Total current Assets .........................................       44,413       57,768
                                                                     ------       ------

LONG-TERM RECEIVABLES:
    Severance pay fund .......................................          310          404
    Other Long-term receivables ..............................        1,463          749
                                                                     ------       ------
Total other long-term receivables ............................        1,773        1,153

PROPERTY AND EQUIPMENT, NET ..................................        1,811        1,762
IDENTIFIABLE INTANGIBLE ASSETS AND
    GOODWILL, NET ............................................       34,334       26,868
                                                                     ------       ------

TOTAL ASSETS .................................................       82,331       87,551
                                                                     ======       ======

LIABILITIES AND EQUITY

CURRENT LIABILITIES:
     Short-term credit and current maturities of long term
        loans ................................................           23           43
     Trade payables ..........................................        2,282        2,662
     Accrued expenses and other accounts payable .............       10,201       25,159
      Deferred revenues ......................................        5,641        1,569
     Current liabilities of  discontinued operation ..........         --            314
                                                                     ------       ------
Total current liabilities ....................................       18,147       29,747
                                                                     ------       ------

NON CURRENT LIABILITIES:
     Long-term loans .........................................            5           10
     Liability due to aqusiotion activities ..................        3,150         --
     Accrued severance pay ...................................          512          606
                                                                     ------       ------
Total non-current Liabilities ................................        3,667          616
                                                                     ------       ------

EQUITY .......................................................       60,517       57,188
                                                                     ------       ------

TOTAL LIABILITIES AND EQUITY .................................       82,331       87,551
                                                                     ======       ======
</TABLE>
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