Municipal Solutions Group, Inc.

Municipal Solutions Group, Inc.

January 18, 2008 17:50 ET

Municipal Solutions Group, Inc. Announces $1,000,000 Convertible Debt Financing

VICTORIA, BRITISH COLUMBIA--(Marketwire - Jan. 18, 2008) - Municipal Solutions Group, Inc. (TSX VENTURE:MSZ) ("Municipal") announces that it has entered into an agreement with Pender Growth Fund (VCC) Inc. and a company controlled by a director of Municipal pursuant to which the two investors will purchase an aggregate of $1,000,000 principal amount of 12% secured, convertible debentures (the "Debentures") to be issued by Municipal.

The Debentures will bear interest at the rate of 12% per annum and interest will be payable monthly, in arrears. The Debentures will mature on the date which is 18 months after the date of their issuance and repayment of all principal and interest will be secured by a general security interest over all of the assets of both Municipal and its wholly-owned subsidiary, Municipal Software Corporation.

Beginning on the date which is six months after the date on which the Debentures are issued, the Debentures will be convertible, at the option of the holder, into common shares of Municipal at a price of $0.25 per share, subject to adjustment in certain specified circumstances. The Debentures may be prepaid by Municipal at any time, without penalty, subject to certain notification and minimum prepayment requirements.

Completion of the financing is subject to a number of conditions, including receipt of all required regulatory approvals.

Dennis Asbury, President and Chief Executive Officer of Municipal commented, "This financing, combined with the cost savings we have realized from our restructuring in October, should allow us to execute on our strategy of profitable growth. We appreciate the confidence shown by these investors."

About Municipal Solutions Group, Inc.

Municipal Solutions Group, Inc was formed in January 2002 as the public financing arm for Municipal Software Corporation.

About Municipal Software Corporation

Municipal Software Corporation (TSX VENTURE:MSZ) provides easily installed, packaged software solutions that manage the everyday business processes of local governments. The solutions are based on 24 years of experience with a product platform that easily adapts to the changing practices of clients. Branded under the CityView name, the company provides a number of out of the box solutions automating practices in Property Information, Permits and Inspections, Planning, Code Enforcement, Licensing and Cashiering. CityView Application Builder is a set of application development tools that allows the client to develop unique applications to match specific needs. Municipal Software offers a complete range of services from training and customer support of its suite of products to custom development for unique applications.

Forward-Looking Statements

Certain statements in this news release are not historical and may constitute forward-looking statements reflecting Municipal Solutions Group, 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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