Nov. 3, 1999
Herziliya, Israel

Crystal Systems Solutions Ltd. (NASDAQ:CRYSF - news) reported today financial results for the third quarter and nine months ended September 30, 1999.

Revenues for the third quarter of 1999 were $11.1 million, as compared to revenues of $11.6 million reported in the corresponding quarter in 1998. Net income for the third quarter of 1999 was $2.2 million, or $ 0.22 per share, compared to net income of $ 2.4 million, or $0.22 per share, in the third quarter of 1998.

Revenues for the nine months ending September 30, 1999 were $33.7 million, compared to revenues of $31.1 million for the corresponding period of 1998. Net income for the nine months of 1999 was $6.9 million, or $ 0.67 per share, compared to net income of $6.7 million, or $ 0.59 per share, for the nine months of 1998.

``I am very pleased with Crystal's results this quarter, especially in view of the fact that almost 70 percent of our revenue this quarter was generated through sustainable, long term proprietary software business. This contrasts with last year's third quarter, where less than 10 percent of our revenue came from non-Y2K related work,' said Gad Goldstein, Chairman of the Board, Crystal Systems Solutions.

Mr. Goldstein continued, ``Crystal prepared, in advance, for changing market dynamics by investing significant effort and capital in research and development over the past years. Through this vast effort, Crystal has successfully repositioned itself as a leading provider of software renovation tools and services. Crystals' repositioning, when combined with recent exciting distribution and business partnership agreements and our proprietary conversion tools, provides us with a significant competitive advantage and enables us to be well prepared to meet the challenges and opportunities in, and beyond, the year 2000.'

About CRYSTAL Systems Solutions
Established in 1987, Crystal Systems Solutions Ltd. (NASDAQ:CRYSF - news) provides software renovation solutions, based on its proprietary technology, for complex conversion and migration projects. Crystal has built its conversion expertise through the successful completion of projects for many prestigious Fortune 500 companies, thus establishing its competency and achieving global recognition and presence.

The Crystal renovation methodology consists of several phases, including assessment, conversion and testing. This methodology allows for tailor-made adjustments to the automated process, based on client requests, thus providing cost-effective, customized solutions.

Crystal's renovation solutions include platform and database migrations, IT mergers and acquisitions, and language upgrades. They are available for mainframe, midrange and client/server computing platforms.

Crystal Systems Solutions is a member of the Formula Group (NASDAQ: FORTY - news), which is the largest public IT group in Israel.

Certain statements contained in this release may be deemed forward-looking statements, with respect to plans, projections, or future performance of the Company, the occurrence of which involves certain risks and uncertainties that could cause actual plans to differ materially from these statements.

These risks and uncertainties include but are not limited to: market demand for the Company's tools, especially demand for decimalization tools, successful implementation of the Company's tools, competitive factors, the ability to manage the Company's growth, the ability to recruit and retrain additional software personnel and the ability to develop new business lines.