TAP Services of Portugal Selects Cargo System

Ground handling division of Portuguese airline to have greater management control, increased efficiency and integration with new cargo handling system

Houten, The Netherlands — March 24, 2005 — Magic Software Enterprises, a provider of business integration and development technology, announced today the implementation of HERMES, its air cargo handling system, at TAP Servicos Portugueses de Handling, S.A. (SPdH) in a deal valued at $ 1.4 million over a four year period.

Portugal-based SPdH is the privatized ground handling division of Transportes Aereos Portugueses (TAP), the airline of Portugal. Since privatization last year, SPdH has worked to increase both its customer base and the volume of cargo it handles. To compete successfully in the air cargo market, SPdH required a system that would modernize its entire cargo handling operation to achieve its goal of becoming the top performing cargo handler in the Iberian Peninsula and other Portuguese speaking countries.

Magic is already providing a hosted version of Hermes for several other customers, proving that hosting is the ideal solution for SPdH. The first site went live in Porto, Portugal in January 2005 and a second implementation is scheduled for completion in Lisbon in April 2005.

The successful implementation of HERMES will enable SPdH to handle an estimated four-fold increase in volumes of cargo without any further increase in staff, while at the same time further strengthen cargo tracking and management. Ultimately, this will help SPdH increase its service standards and reduce failures. Customers of SPdH are already benefiting from the improved level of customer service.

Chris Notter, Operations director of Lufthansa Cargo, one of SPdH's key customers said, "The HERMES system provided us with a powerful IT solution that will help us overcome the current stumbling blocks, such as IT shortfalls and infrastructure of our major airports. With the upcoming roll out at Lisbon Airport, we anticipate further success."