Cary, NC and Roosendaal, Netherlands – 11 March 2003 – pursuant to a cash tender offer placed in December 2002, Crystal Systems Solutions Ltd. now owns 90% of Liraz Systems Ltd., the parent company of BluePhoenix™ Solutions. This follows the approval given by Crystal Systems stockholders for the purchase of 86% of Liraz stock on November 14, 2002.

The companies will be working together to create a leading force in the Enterprise IT Modernization (EIM) market and strengthen the global presence of both companies. The companies intend to coordinate their global marketing and sales operations through a reseller agreement. BluePhoenix Solutions and Crystal Systems have already worked together on successful joint-bid projects involving their respective products and services. 

"The addition of the BluePhoenix organization into our corporate structure enhances the position of both companies in the worldwide market," commented Mr. Gad Goldstein, Chairman of Crystal.  "The BluePhoenix product and service offerings are the ideal complement to those of Crystal Systems and will improve the range of our technological offerings, increase sales, and solidify our global infrastructure."

Chairman of Liraz and CEO of BluePhoenix, Arik Kilman, also sees a greater competitive edge for both companies resulting from the merger, "This merger enhances our current offerings by giving us greater ability to provide solutions that address legacy modernization and the re-use of legacy components while also taking advantage of newer technologies. The technological and operational synergies between BluePhoenix's AppBuilder product and the CRYSWARE solutions will give global enterprises the ability to adapt to changing IT demands without losing the value of their previous investments." 

About BluePhoenix Solutions
BluePhoenix Solutions provides software and services for enterprise application development and management. In addition to some of the world's largest financial institutions, BluePhoenix provides large-scale solutions for leading enterprises around the world. The BluePhoenix group is headquartered in the Netherlands with wholly owned BluePhoenix subsidiaries in Cyprus, Denmark, Germany, Italy, the United Kingdom, and the United States. For more information, visit www.bphx.com.

About Crystal Systems Solutions Ltd.
Crystal Systems Solutions Ltd. develops and markets software products and solutions that enable clients to efficiently manage the IT assets at their disposal, including legacy applications, modern application packages, middleware, and networking technologies. Its products provide cross-platform software renovation, modernization, and IT asset management solutions that are designed to accelerate the process of mission-critical legacy renewal, integration, and maintenance during an application's entire life cycle. For more information, visit the Crystal Web site, www.crystal-sys.com.