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FORM 20-F/A (Amendment No. 1) SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

|o | REGISTRATION
STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934;
|- | -----------------------------------------------------------------------------------------------

OR

|x | ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934        For
the fiscal year ended December 31, 2004;
|- | ----------------------------------------------------------------------------------------------------------------------------------------

OR

|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

| | For
the transition period from __________ to ___________
| | --------------------------------------------------------

Commission File Number:
0-29442

FORMULA SYSTEMS (1985) LTD. (Exact name of registrant as specified in its charter)

Israel(Jurisdiction of incorporation or organization)

3 Abba Eban
Boulevard, Herzlia 46725, Israel (Address of principal executive offices)

Securities registered or to be
registered pursuant to Section 12(b) of the Act:

None

Securities registered or to be registered
pursuant to Section 12(g) of the Act:

American Depositary SharesOrdinary
Shares, NIS 1 par value(Title of class)

Securities for which there is a
reporting obligation pursuant to Section 15(d) of the Act:

American Depositary
SharesOrdinary Shares, NIS 1 par value(Title of Class)

As of December 31, 2004, the
registrant had 10,800,000 outstanding ordinary shares, NIS 1 par value, of which
412,472_were represented by American depositary shares as of such date.

Indicate by check mark whether the
registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes x No o

Indicate by check mark which
financial statement item the registrant has elected to follow:

Item 17 o Item 18 x



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EXPLANATORY NOTE

This
Amendment No. 1 to the Annual Report on Form 20-F is being filed with the Securities and
Exchange Commission for the sole purpose of correcting a typographical error appearing on
the cover page of the Annual Report pursuant to which the numberof outstading ordinary
shares, NIS 1 par value, of the registrant as of December 31, 2004 was reported as
13,200,000, rather than 10,800,000 as amended and currently reported on the cover page of
the Annual Report. The number of outstanding ordinary shares appearing elsewhere in this
Annual Report is correct.



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# SIGNATURES

The registrant hereby certifies that
it meets all of the requirements for filing on Form 20-F and that it has duly caused and
authorized the undersigned to sign this Amendment No. 1 to the annual report on its
behalf.

| |  | FORMULA SYSTEMS (1985) LTD.BY: /S/ Dan GoldsteinDan GoldsteinChairman of the Board andChief Executive Officer
| |  | ---------------------------------------------------------------------------------------------------------------------------

Date: June 30, 2005

3

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# Exhibit Index

# Exhibit No.

|1.1 |  | Memorandum
of Association*
|--- |  | --------------------------

|1.2 |  | Articles
of Association as amended on January 7, 2001**
|--- |  | -------------------------------------------------------

|2 |  | The
description of terms of debentures issued by the Registrant in May 2002, contained in
                        Section 2.3 of the prospectus of the Registrant dated May 23,
2002 ***
|- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.1 |  | Agreement
dated October 1, 1999 between the Registrant and Shamrock Holdings of California
                        Inc.****
|--- |  | ---------------------------------------------------------------------------------------------------------------------------

|4.2 |  | Agreement
dated January 24, 2001 among the Registrant, Sapiens International Corporation N.V.
                        and Yarnfield International Limited**
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------

|4.3 |  | Amendment
to the agreement among the Registrant, Sapiens International Corporation N.V. and
                        Yarnfield International Limited, dated October 20, 2002*****
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.4 |  | Agreement
dated December 30, 2001 between the Registrant and Formula Vision Technologies
                       (F.V.T.) Ltd. (English summary accompanied by Hebrew
original)******
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4.5 |  | Agreement
dated December 15, 2003 between the Registrant and Formula Vision Technologies
                        (F.V.T.) Ltd. *****
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------

|4.6 |  | Share
Purchase Agreement dated February 16, 2005 between the Registrant and  FIMGold LP
|--- |  | ----------------------------------------------------------------------------------------

|4.7 |  | Registration
Rights Agreement dated March 3, 2005 between the Registrant and FIMGold LP
|--- |  | ----------------------------------------------------------------------------------------

|4.8 |  | Form
of the 1997 Share Option Plan (English translation from Hebrew original)*
|--- |  | ------------------------------------------------------------------------------

|4.9 |  | Form
of the 2000 Share Option Plan (English translation from Hebrew original)**
|--- |  | -------------------------------------------------------------------------------

|4.10 |  | Letter
of Indemnification, dated February 14, 2002******
|---- |  | --------------------------------------------------------

|8 |  | List
of Subsidiaries
|- |  | ---------------------

|12.1 |  | Certification
of the Chief Executive Officer pursuant toss.302 of the Sarbanes-Oxley Act
|---- |  | -----------------------------------------------------------------------------------------

|12.2 |  | Certification
of the Principal Financial Officer pursuant toss.302 of the Sarbanes-Oxley Act
|---- |  | ---------------------------------------------------------------------------------------------

|13.1 |  | Certification
of the Chief Executive Officer pursuant to 18 U.S.C. sec. 1350, as adopted
                       pursuant to sec. 906 of the Sarbanes-Oxley Act
|---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------

4

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# Exhibit No.

|13.2 |  | Certification
of the Principal Financial Officer pursuant to 18 U.S.C. sec. 1350, as adopted
                       pursuant to sec. 906 of the Sarbanes-Oxley Act
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------

|15.1 |  | Additional
Certification of the Chief Executive Officer
|---- |  | -------------------------------------------------------

|15.2 |  | Additional
Certification of the Principal Financial Officer
|---- |  | -----------------------------------------------------------

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* Incorporated by reference to the
Registration Statement on Form F-1 (File No. 333- 8858).

** Incorporated by reference to the
Annual Report on Form 20-F filed with the Securities and Exchange Commission on June 29,
2001.

*** Incorporated by reference to the
Form 6-K filed with the Securities and Exchange Commission on June 14, 2002.

**** Incorporated by reference to the
Annual Report on Form 20-F filed with the Securities and Exchange Commission on June 21,
2000.

***** Incorporated by reference to
the Annual Report on Form 20-F filed with the Securities and Exchange Commission on June
30, 2004.

****** Incorporated by reference to
the Annual Report on Form 20-F filed with the Securities and Exchange Commission on June
28, 2002.

        Previously
filed.

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