Magic Announces Distribution of Cash Dividend for Second Half of 2017

OR YEHUDA, Israel, February 28, 2018 /PRNewswire/ --

Magic Software Enterprises Ltd. (NASDAQ and TASE: MGIC), a global provider of end-to-end integration and application development solutions and IT consulting services, announced today that in compliance with its dividend distribution policy, its Board of Directors has declared a semi-annual cash dividend in the amount of US $0.13 per share and in the aggregate amount of approximately US $5.8 million for the second half of 2017, reflecting 75% of its net income attributable to Magic's shareholders.

The dividend is payable on March 26, 2018 to all of the Company's shareholders of record at the close of the NASDAQ Global Select Market on March 13, 2018.

Together with the dividend distributed for the first half of 2017, Magic distributed an annual total of US $0.26 per share related to its 2017 earnings and in the aggregate amount of approximately US $11.6 million.

In accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of 30% (if the recipient of the dividend is at the time of distribution or was at any time during the preceding 12-month period the holder of 10% or more of the Company's share capital) or 25% (for all other dividend recipients) of the dividend amount payable to each shareholder of record, subject to applicable exemptions.

The dividend will be paid in US dollars on the ordinary shares of Magic Software Enterprises that are traded both on the Tel Aviv Stock Exchange and the NASDAQ Global Select Market.

About Magic Software Enterprises
Magic Software Enterprises (NASDAQ: MGIC) empowers customers and partners around the globe with smarter technology that provides a multichannel user experience of enterprise logic and data.

For more information, visit http://www.magicsoftware.com.

Except for any historical information contained herein, matters discussed in this press release might include forward-looking statements that involve a number of risks and uncertainties. Regarding any financial statements, actual results might 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 locally and abroad, release and sales of new products by strategic resellers and customers, and other risk factors detailed in Magic's most recent annual report and other filings with the Securities and Exchange Commission.

Magic has made every effort to ensure that the information contained in this press release is accurate; however, there are no representations or warranties regarding this information, including warranties of merchantability or fitness for a particular purpose. Magic assumes no responsibility for errors or omissions that may occur in this press release.

Magic is a registered trademark of Magic Software Enterprises Ltd. All other product and company names mentioned herein are for identification purposes only and are the property of, and might be trademarks of, their respective owners.

Press Contact:
Amit Birk | VP M&A and General Counsel
Magic Software Enterprises
[email protected]

SOURCE Magic Software Enterprises Ltd