January 20, 2004

Herzlia, Israel (January 20, 2004). Formula Travel Solutions (FTS) Ltd. today announced that it won a contract from Pegas, one of the biggest tour operators in Russia, to provide its TOPAX technology platform - an integrated, comprehensive, on-line tour operator system.

"TOPAX will help Pegas strengthen its position as a leading tour operator in Russia and to increase its share of the Russian tourism market" said Ramazan Akpinar, the owner of Pegas.

"The project at Pegas is a major step in the company's policy to expand its presence in Russia" said Eldad Zerahia, CEO of FTS.

TOPAX is a comprehensive software application, includes the entire commercial, operational, and administrative aspects of Tour operator activities, providing the necessary planning, costing, pricing, inventory, allotment, document printing, accounting and reporting. It includes hotel and flight reservations, packages, tours, car rental, product information, and more. TOPAX comprises innovative management and monitoring tools, allowing the executives to personally assure the best customer service, always staying in complete control. A flexible database and enhanced interfaces improve user-friendliness and efficiency.

The latest version of TOPAX is TOPAX MarketPlace, a complete technology platform, Internet enabled, provides rapid connectivity to external computers and websites. It allows product loading by suppliers and distribution to unlimited number of marketing channels. XML interfaces enable to develop and merge transparent connectivity to external systems, in real time, allowing direct product delivery (such as flights or land services) to customer's order.

About Pegas
Pegas Touristik is one of the largest tour operators in Russia, headquartered in Moscow. Pegas activity is outgoing tourism, employing many travel professionals and focuses on high quality service. www.pegast.ru

About Formula Travel Solutions
Formula Travel Solutions (FTS) is a leading technology company, providing advanced software systems to the global travel industry, for more than 20 years www.formula-travel.com . FTS is a member of the Formula Group, a large software group, employing more than 4,000 IT professionals, operating in more than 50 countries. www.formulagroup.com