SOURCE: Nexiasoft, Inc.

October 12, 2006 09:30 ET

Nexiasoft, Inc. Enters Into Letter of Intent to Acquire Tax Rate Integration Firm

Cytak Acquisition Represents Another Milestone in Execution of Nexiasoft Growth Plan

SAN FRANCISCO, CA -- (MARKET WIRE) -- October 12, 2006 -- Nexiasoft, Inc. (PINKSHEETS: NXSF), a holding company which invests in convergent e-commerce technology companies, announced today that it has signed a non-binding Letter of Intent (LOI) to acquire Cytak, Inc., a U.S. software company specializing in the integration of tax rate data into enterprise order management systems.

Under the terms of the LOI, Nexiasoft will acquire 100% of the outstanding shares of Cytak. Thereafter, Cytak will become a wholly owned subsidiary of Nexiasoft. The Cytak acquisition will not only complement Nexiasoft's growth plan, it will also provide direct access to the expanding SME (Small Medium Enterprise) and ERP (Enterprise Resource Planning) market through its existing customer base and domain expertise.

The completion of the transaction is subject to negotiation and execution of a definitive merger agreement and the satisfaction of closing conditions. Nexiasoft expects to complete the acquisition within 30 days.

In discussing the anticipated acquisition of Cytak, Kevin Owens, CEO of Nexiasoft, Inc., stated, "The acquisition of Cytak is an excellent opportunity to expand our penetration into the multi-billion dollar SME market. We anticipate the acquisition of Cytak will allow us to continue to realize increased revenue from one quarter to the next and provide us opportunities for further expansion and growth in the future."

About Cytak:

Cytak is a managed service that provides automatic distribution of sales and use tax rates with verification tools to analyze tax payments. It is built, maintained and operated in a secure environment and provides tax integration services for standard ERP and accounting packages.

In the regulatory and compliance environments of today, Cytak provides customers confidence in knowing that their tax rates are always up-to-date and eliminates the labor traditionally required to keep these systems maintained.

For more information about Cytak, visit www.cytak.com.

About Nexiasoft:

Nexiasoft recently commenced trading on the Over-The-Counter Pink Sheets market under the symbol: NXSF and is a holding company that invests in convergent e-commerce technology companies. Companies with disruptive technology in the area of wireless, open-source, and security are particularly of interest. Through targeted investments in such companies, Nexiasoft will continue to provide a compounding effect to the overall value of their portfolio.

For more information, visit Nexiasoft's website at: www.nexiasoft.com.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to known and unknown risks, uncertainties or other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Actual results could differ materially because of factors such as: the effect of general economic and market conditions, entry into markets with vigorous competition, market acceptance of new products and services, continued acceptance of existing products and services, technological shifts, and delays in product development and related product release schedules, any of which may cause revenues and income to fall short of anticipated levels.

All information in this release is as of the date of this release. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

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