Exhibit 99.2

Press Release

Level 8 Systems Subsidiary Completes $20 Million Sale of Geneva AppBuilder
Product to Liraz Systems

Level 8 to Focus on Cicero Business Process Organization Software

CARY, N.C. and TEL AVIV, Israel, Oct. 4  --

Level 8 Systems, Inc. (Nasdaq:LVEL), a global provider of high performance
eBusiness integration software, and Liraz Systems, Ltd. today announced that the
Level 8 Technologies, Inc. subsidiary has completed the sale of assets of its
Geneva AppBuilder software to BluePhoenix Solutions, a Netherlands based wholly
owned subsidiary of Liraz Systems Ltd. The agreement with BluePhoenix Solutions,
previously known as AppBuilder Solutions BV, was originally announced last
month. This sale will help fund Level 8's expansion of its Cicero business
process organization software development and marketing activities.

Under the terms of the agreement, BluePhoenix Solutions has acquired all of the
assets associated with the Geneva AppBuilder product for approximately US$20
million in cash. Level 8 has utilized US$12 million of the proceeds to reduce
its US$15 million short-term debt obligations. It also re-characterized the
remaining US$3 million as long-term debt.

"Our strategic direction is to provide business integration solutions that
address the needs of knowledge workers, such as contact center agents and
brokers, in vertical markets. In addition to our workflow product offerings,
Level 8 now offers Cicero, a solution to seamlessly gather information from
diverse sources and deliver it directly to the desktop in a single task- centric
user interface," said Tony Pizi, CEO of Level 8 Systems. "The transaction with
Liraz has enabled us to focus resources to address this larger market where we
believe we can make a greater impact."

"With this acquisition, our BluePhoenix Solutions subsidiary has obtained a
very professional and focused software and services business in the Financial
Services sector, which we look forward to growing as a key component of Liraz's
activities," said Yossi Shemesh, CEO of Liraz Systems, Ltd. "The Geneva
AppBuilder product has a well-established customer base, and we are committed to
continue to provide them with top quality products and services. We also look
forward to growing this business and establishing new customers through a highly
focused business strategy that leverages the robust, proven Geneva AppBuilder
product and the employees experienced in enterprise application solutions that
comprise the staff of BluePhoenix Solutions worldwide."

Geneva AppBuilder Software

Already in use by numerous Global 2000 customers, Geneva AppBuilder allows
organizations to define mission critical applications through the specification
of business rules that are independent of destination platform or technical
architecture. Geneva AppBuilder's powerful generators, in combination with an
enterprise-scale repository, allow companies to design, deploy, and maintain
sophisticated high-volume, distributed applications based on Java 2 Enterprise
Edition (J2EE), HTML "C" and OS/390 COBOL.

About BluePhoenix Solutions and Liraz Systems, Ltd.

BluePhoenix Solutions is a global provider of enterprise-scale application
development software and services that allow organizations to create and
maintain high performance, mission critical applications. BluePhoenix Solutions
markets its solutions to a number of industries with an initial focus on banking
and insurance. More information is available on the BluePhoenix web site at
www.bluephoenixsolutions.com. Liraz Systems Ltd., a public company traded on the
Tel Aviv Stock Exchange, provides software solutions and products through
numerous subsidiaries. More information is available on the Liraz web site at
www.liraz.co.il.

About Level 8 Systems


Level 8 Systems, Inc. (Nasdaq: LVEL; www.level8.com) is a global provider of
high performance eBusiness integration software that enables organizations to
seamlessly integrate enterprise applications, information and processes within
an existing infrastructure. The Company markets its products and services to a
variety of industries including financial services, telecommunications,
utilities, transportation and retail. More information is available on the Level
8 web site at www.level8.com.

Except for any historical information contained herein, this news release
contains "forward-looking statements" on such matters as strategic direction,
new products, and similar matters. Actual results may differ materially from the
anticipated results or other expectations expressed in this release as a result
of a variety of factors, including risks that customers may not adopt the Cicero
technology; that Level 8's license for the Cicero technology may become non-
exclusive in August, 2002; and other risks and uncertainties that could cause
actual results to differ materially from such statements. For a description of
other factors that could cause such a difference, please see Level 8's filings
with the Securities and Exchange Commission.

Level 8, Level 8 Systems and the Level 8 logo are trademarks of Level 8 Systems,
Inc. Cicero is a registered trademark of Merrill Lynch, Pierce, Fenner & Smith
Incorporated. All other brands, names and trademarks mentioned in this document
or website are the property of their respective owners.