Insurance

Sapiens International Corporation N.V. (NASDAQ and TASE: SPNS) ("Sapiens" or "Company"), a leading global provider of innovative business solutions that modernize business processes and enable insurance organizations to adapt quickly to change, and a member of the Formula (NASDAQ: FORTY and TASE: FORT) Group, today announced its results of operations for the first quarter of 2009.

    Highlights for Q1 2009

  - Revenues increased by 2% to $10.7 million compared with $10.5 million
    in Q1 2008

  - Continuous success of Company's growth plan with the tenth consecutive
    quarter of operating profit, which totaled $1.1 million, a 155%
    increase compared with $423,000 in Q1 2008

  - Third consecutive quarter of net income, reaching $1.0 million compared
    with a $1.2 million net loss in Q1 2008.

  - In January 2009 the Company has repurchased approximately $0.4 million
    nominal value of its convertible debentures (series A), thus reaching a
    total repayment to-date of approximately 80% of the total issued
    series.

Roni Al-Dor, President and CEO of Sapiens, commented, "In the first quarter of 2009 we continued the growth momentum of all operating parameter despite the challenging world-wide economical environment - our revenues increased by 2% to $10.7 million compared to the same period of 2008. The increase is a result of further implementation of our solutions by existing and new customers. We achieved yet another quarter of operating income and our third consecutive quarter of net income, reaching $1.0 million compared with a net loss of $1.2 million Q1 2008.

"We are witnessing increased interest from the market in our INSIGHT for Closed Books and Reinsurance platforms. As the recent economical climate and increasing regulatory requirements are driving insurance companies to seek ways of achieving lower policy administration costs, whilst actively managing their risks, we offer them our comprehensive INSIGHT suite of insurance solutions. This suite includes a solution for both operational excellence, through our INSIGHT for Closed Books platform, as well as a Re-Insurance web-enabled solution that streamlines and reduces the cost of handling all reinsurance functions".

"Looking forward, with proven solutions, improved financial performance and a broad customer base, I believe that we are well positioned to take future traction in our space."

Reconciliation between U.S. GAAP and Non-GAAP results is summarized in the following table. For a complete reconciliation, please refer to the tables at the end of this release.

    U.S. Dollars in thousands, except per share amounts

                                               For the three months ended
  U.S GAAP basis                             03/31/2009        03/31/2008
                                             (Unaudited)      (Unaudited)
  Revenues                                       10,744            10,491
  Operating profit                                1,080               423
  Net income (loss)                               1,018            (1,200)
  Basic earning (loss) per share                   0.05             (0.06)
  Diluted earning (loss) per share                 0.05             (0.06)

  NonGAAP
  Revenues                                       10,744            10,491
  Operating profit                                1,276               522
  Net income (loss)                               1,214            (1,101)
  Basic earning (loss) per share                   0.06             (0.05)
  Diluted earning (loss) per share                 0.06             (0.05)

U.S. GAAP results include amortization of capitalized software developments, capitalization of software development costs, and stock-based compensation expenses.