CloudBench Applications, Inc.

CloudBench Applications, Inc.

November 27, 2008 18:28 ET

CloudBench Applications Announces Results for Third Quarter 2008

VICTORIA, BRITISH COLUMBIA--(Marketwire - Nov. 27, 2008) - CloudBench Applications, Inc. (formerly Municipal Solutions Group, Inc.) (TSX VENTURE:CBH) ("CloudBench" or the "Company") today announced its unaudited financial results for the quarter ending September 30th, 2008.

The third quarter of 2008 reflected the sale by CloudBench of its legacy, On-Premises business and the majority of its assets related to the CityView product. A net gain on sale of $5,886,171 was recorded in the quarter but is subject to future claims by the purchaser of CityView pursuant to the sale agreements.

Revenue related to the Company's Software as a Service ("SaaS") product, which was retained by the Company and is being sold under the name Local Government Manager, increased to $27,822 in the quarter from $4,258 in the same quarter of the prior year.

CloudBench develops, sells and supports Local Government Manager, a web-based solution, to meet the needs of local governments who wish to employ the growing SaaS software model, rather than an on-premises solution. The Local Government Manager SaaS solution offers local governments new levels of security, flexibility and efficiency for their permitting and inspections, code enforcement and planning needs. CloudBench intends to take advantage of the operating benefits of shorter customer implementations and more efficient upgrades plus the recurring revenue stream that the SaaS delivery model provides.

The net gain for the quarter was $4,942,449 or $0.25 per share compared to a loss of $(677,612) or $(0.04) per share for the same quarter in 2007.

David Roberts, President and Chief Executive Officer of CloudBench Applications commented, "During the quarter we sold our CityView On-Premises business, distributed a portion of the proceeds to shareholders, and retained sufficient funds to grow Local Government Manager, our Software as a Service business. Our SaaS offering is a timely, affordable solution for local governments. With Local Government Manager, smaller communities can streamline key business processes faster than On-Premise products and at a fraction of the cost of traditional software."

The following is the Consolidated Statements of Operations, Comprehensive Gain (Loss) and Deficit (unaudited) for the nine months ended September 30, 2008 and September 30, 2007. A complete set of financial statements and analysis is available at

Consolidated Statements of Operations, Comprehensive Gain (Loss) and
Deficit (unaudited)

Three months ended Nine months ended
Sept 30 Sept 30 Sept 30 Sept 30
2008 2007 2008 2007

Revenue $ (77,066) $ 1,108,651 $ 2,180,299 $ 3,506,383
Customer service 91,598 407,325 894,389 1,319,067
Sales and marketing 48,328 289,651 340,209 781,942
Research and
development 80,470 463,096 769,876 1,533,591
General and
administrative 424,675 414,087 1,148,958 1,218,866
Restructuring costs 215,000 - 215,000 317,074
860,071 1,574,159 3,368,432 5,170,540
Loss before the
following (937,137) (465,508) (1,188,133) (1,664,157)

Amortization 7,682 63,697 91,239 194,529
Interest 7,211 29,198 103,866 82,459
Loss (gain) on foreign
exchange (11,783) 119,209 (36,881) 224,342
Accreted interest 3,475 - 23,780 -
Gain on sale of assets (5,886,171) - (5,886,171) -
Net gain (loss) and
comprehensive gain
(loss) for the period 4,942,449 (677,612) 4,516,034 (2,165,487)

Deficit, beginning of
period (10,300,088) (8,645,846) (9,873,673) (7,157,971)
Early conversion premium
- convertible
debentures (285,000) (285,000)

Deficit, end of period $(5,642,639) $(9,323,458) $(5,642,639) $(9,323,458)

Loss per share:
Basic and diluted $ 0.25 $ (0.04) $ 0.24 $ (0.13)

Weighted average number
of shares outstanding:
Basic and diluted 19,501,734 18,446,666 18,892,573 18,584,898

About CloudBench Applications, Inc.

CloudBench Applications, Inc. provides a web-based solution, called Local Government Manager, to meet the needs of local governments who wish to employ the growing SaaS (Software as a Service) software model, rather than an On-Premises solution. Local Government Manager offers new levels of security, flexibility and efficiency for the permitting and inspections, code enforcement and planning needs of local governments.

Forward-Looking Statements

Certain statements in this news release are not historical and may constitute forward-looking statements reflecting CloudBench Applications, Inc.'s current expectation in the local government sector. These statements are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual events or results.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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