MATRIX ANNOUNCES Q4 and YEAR END 2007 RESULTS

13 Mar 2008 15:44

MATRIX ANNOUNCES Q4 and YEAR END 2007 RESULTS RECORD RESULTS ACROSS ALL OPERATIONAL PARAMETERS

Ra'anana, Israel, 13 March 2008 - Emblaze Ltd ("Emblaze or "the Group") announces that Matrix IT Ltd. (TASE: MTRX), a member of the Emblaze/ Formula Group , ("Matrix" or "the Company"), announced its results of operations for the forth quarter and year end of 2007.

Financial Highlights(*)

* Q4 2007 revenues increased by 24% to $88.5 million, up from $71.6 million in Q4 2006. * Revenues for the period ended 31 December, 2007 amounted to $313.9 million, up from $262.4 million in the corresponding period last year. * Operational profit for Q4 2007 increased by 35% to $8.0 million compared to $5.9 million in Q4 2006. * Operational Profit for the period ended 31 December 2007 increased by 13.7% to $43.9 million, up from $38.6 million in the corresponding period last year. * Net profit for the period ended 31 December 2007 increased by 14% to $19.3 million compared to $16.9 million in the corresponding period last year

Guy Bernstein, CEO of Emblaze said: "2007 was a great year for Matrix and its growth was mainly organic. The Company won many projects in the Israeli market, completed a private fund raising in an amount of approximately $US60 million through the issuance of bonds rated AA3 by Midrug, expanded its offshore operation through the acquisition of Unicoders in Bulgaria and executed an MOU with Microsoft for the distribution of the Microsoft ERP system. We continue to focus on expanding the Company's international reach further to maintaining its position as market leader in the Israeli IT sector".

STATEMENTS OF OPERATIONS

U.S. dollars in thousands (US GAAP)

Year Ended December 31, 2007 2006 Revenues 313,902 262,420 Costs of revenues 245,536 204,607 Gross profit 68,366 57,813 Operating expenses: Research and development 329 595 Selling, general and 43,559 38,004 administrative expenses Total operating expenses 43,888 38,599 Operating income 24,478 19,214 Financial expenses (2,063) (1,225) Other income (expenses), net (831) 2,924 Income before taxes on income 21,584 20,913 Taxes on income 1,358 3,510 Income before equity gains and 20,226 17,403 minority interests Equity gains (losses) of (567) 31 affiliates Minority interests in gains of (389) (537) subsidiaries Net Income 19,270 16,897

(*) figures are translated from New Israeli Shekels to US Dollars based on average exchange rates for the applicable period.

Emblaze Ltd Hadas Gazit, Hagit Gal +972 9 7699302/ 339 Notes to editor:About Matrix IT Ltd.

Matrix IT Ltd. is traded on the Tel Aviv Stock Exchange index 100. Matrix is one of the leading integration and information technology (IT) services providers in Israel. The company has circa 3,300 employees which provide services for over 500 clients in the Israeli market. The company is active in four major sectors: software solutions and products, Integration solutions as well as operation of training centers in the hi-tech field and professional training courses in various sectors. The company provides its products and solutions to a variety of customers in various sectors: banking and finance, communications and security, industry and trade for government institutions and for different companies in the public sector.

For more information, please visit www.matrix.co.il

About Emblaze

Emblaze Ltd is a group of technology companies addressing both growth and innovation activities thus combining the stability of "bread and butter" mature technology enterprises with "high-risk / high-reward" investments in innovation.

Growth activities

Formula Systems, which includes:

* Magic Software Enterprises Ltd. develops, markets and supports composite application development and deployment platforms with a service-oriented architecture (SOA), including application integration and business process management (BPM), with existing and legacy systems; * Matrix IT Ltd. (TASE: MTRX) is one of Israel's leading integration and information technology services companies, active in four principal areas: software solutions and services, software products, infrastructure solutions and hardware products, and training and assimilation. * Sapiens International Corporation N.V. is a provider of IT solutions that modernize business processes to enable insurance and other companies to quickly adapt to changes. * nextSource Inc., designs, develops and implements web-based, high quality, innovative human capital management solutions.

Innovation activities

* Emblaze Mobile, an designer of advanced mobile devices; * emoze, a free global Push Email technology for mobile devices * ZONE-IP (Emblaze V CON), a provider of wireless video communications technologies and conferencing solutions for operators and enterprise markets over IP networks * Orca Interactive , provider of Interactive Television IPTV middleware for Video On Demand (VOD) and broadcast services ; and * Visual Defence , (minority stake) a wireless and IP video solutions provider for military and homeland security markets.

Emblaze Group is traded on the London Stock Exchange since 1996. www.Emblaze.com