CloudBench Applications, Inc.
TSX VENTURE : CBH

CloudBench Applications, Inc.

March 12, 2009 15:01 ET

CloudBench Applications Announces Annual Results for 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 12, 2009) - CloudBench Applications, Inc. (formerly Municipal Solutions Group, Inc.) (TSX VENTURE:CBH) ("CloudBench" or the "Company") today announced its financial results for the year ending December 31st, 2008.

The annual results reflected the sale by CloudBench of CityView, its legacy, enterprise software business, and the majority of its assets related to the CityView product. A net gain on sale of $5,878,934 was recorded in the year but is subject to future claims by the purchaser of CityView pursuant to the sale agreements.

Revenue related to the Company's web-based software, which was retained by the Company and is being sold under the name BasicGov (formerly Local Government Manager), increased to $31,180 in the fourth quarter from $11,332 in the same quarter of the prior year. On an annual basis, revenue for BasicGov increased to $104,905 from $19,037 in the prior year.

CloudBench develops, sells and supports BasicGov, a web-based software product for small to medium-sized local governments to streamline their permitting and inspections, code enforcement and planning processes. BasicGov is a reliable, secure solution delivered for an affordable price and is the only web-based software for local governments built on the Force.com platform, the backbone of web-based solutions used by more than 50,000 organizations worldwide. Unlike enterprise software that is expensive to acquire and difficult to implement, BasicGov requires no capital investment and is simple to set up.

Net earnings for the year were $4,355,912 or $0.23/share compared to a loss for the prior year of $2,715,702 or $(0.16)/share. The net loss for the fourth quarter was $160,123 or $(0.01) per share compared to a loss of $550,215 or $(0.03) per share for the same quarter in 2007.

David Roberts, President and Chief Executive Officer of CloudBench Applications, commented, "Last year we sold our CityView enterprise software business, distributed a portion of the proceeds to shareholders, and focused on growing BasicGov, our web-based software for local governments. We also relocated to Vancouver and added staff in marketing, sales and support. The financial results for last year reflect the significant sale transaction and our shift to a leaner, more efficient web-based business model. We believe that BasicGov, as a reliable, affordable and easy-to-use solution, has strong appeal to cost-conscious local governments in the current economic climate."

The following is the Consolidated Statements of Operations, Comprehensive Earnings (Loss) and Deficit for the years ended December 31, 2008 and 2007. A complete set of financial statements and analysis is available at www.sedar.com.



CLOUDBENCH APPLICATIONS, INC.
Consolidated Statements of Operations, Comprehensive Earnings (Loss),
and Deficit

Years ended December 31, 2008 and 2007

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2008 2007
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Revenue $ 2,236,616 $ 4,813,035

Expenses:
Customer service 923,667 1,664,386
Sales and marketing 372,785 1,034,028
Research and development 773,036 1,954,784
General and administrative 1,275,392 1,693,946
Restructuring costs 230,000 500,314
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3,574,880 6,847,458
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Loss before the following (1,338,264) (2,034,423)

Amortization 91,547 252,164
Interest 103,900 99,887
Loss (gain) on foreign exchange (39,469) 318,058
Loss on equipment disposal - 11,170
Accreted and non-cash interest 28,780 -
Gain on sale of assets (5,878,934) -
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Net earnings (loss) and comprehensive
earnings (loss) for the year 4,355,912 (2,715,702)

Deficit, beginning of year (9,873,673) (7,157,971)

Early conversion premium - convertible
debentures (285,000) -

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Deficit, end of year $(5,802,761) $(9,873,673)
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Earnings (loss) per share:
Basic and diluted $ 0.23 $ (0.16)
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Weighted average number of shares
outstanding:
Basic and diluted 19,103,186 17,283,934


About CloudBench Applications, Inc.

CloudBench Applications, Inc. develops, sells and supports BasicGov, an affordable web-based software used by small to medium-sized local governments to streamline their permits and inspections, code enforcement and planning processes. BasicGov is the only web-based software for local governments built on the Force.com platform, the backbone of web-based solutions used by more than 50,000 organizations worldwide. BasicGov software requires only an Internet connection and a browser. Users pay a monthly subscription fee of $125 per module and no capital investment is required.

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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