CloudBench Applications, Inc.
TSX VENTURE : CBH

CloudBench Applications, Inc.

May 28, 2009 14:37 ET

CloudBench Applications Announces Results for First Quarter 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 28, 2009) - CloudBench Applications, Inc. (formerly Municipal Solutions Group, Inc.) (TSX VENTURE:CBH) ("CloudBench" or the "Company") today announced its financial results for the three months ending March 31, 2009. Revenue related to the Company's web-based software, sold under the name BasicGov (formerly Local Government Manager), increased to $36,402 in the first quarter from $21,344 in the same quarter of 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 the only web-based software for local governments built on the Force.com, the cloud computing platform from SalesForce.com used by more than 55,000 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.

David Roberts, President and Chief Executive Officer of CloudBench, commented, "Over the last few months the Company has relocated to Vancouver and built a strong team to grow BasicGov's market share. Over the next few months we expect to see accelerated growth in revenues as we increase marketing, sales and user implementation. 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."

At March 31, 2009 the Company's cash position was $622,265. The Company has a net holdback receivable of $696,024 comprised of two holdback amounts that are related to the sale to Harris of the CityView business in 2008. Under the terms of the sale agreement, the Company may be required to make a payment of a material amount with respect to the first holdback before the second holdback is due in January 2010. If such a payment to Harris is required, management believes that with the continued financial support of Pender Growth Fund the Company will have sufficient capital resources to meet its operating requirements and to finance its projected growth in the near term.

Due to the sale of the on-premises business of CloudBench on July 18, 2008, comprising the CityView product offering, the comparison of operating results to the prior period is not meaningful since the operating results of the former business are no longer part of CloudBench's operations. Net loss for the quarter was $199,723 or ($0.01)/share compared to a loss for the same period in the prior year of $134,308 or $(0.01)/share.

The following is the Consolidated Statements of Operations, Comprehensive Earnings (Loss) and Deficit for the quarters ended March 31, 2009 and 2008. A complete set of financial statements and analysis is available at www.sedar.com.



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

Three months ended March 31, 2009 and 2008

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Mar 31, 2009 Mar 31, 2008
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Revenue $ 36,402 $ 1,170,516

Expenses:
Customer service 12,154 392,542
Implementation 31,102 -
Sales and marketing 35,073 167,166
Research and development - 343,871
General and administrative 167,020 348,806
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245,349 1,252,385
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Income (loss) before the following (208,947) (81,869)

Amortization 522 44,084
Interest expense 3,404 49,412
Interest income (13,073) -
Loss (gain) on foreign exchange (77) (46,008)
Accreted interest - 4,951
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Net loss and comprehensive loss for the period (199,723) (134,308)

Deficit, beginning of period (5,802,761) (9,873,673)

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Deficit, end of period $ (6,002,484) $ (10,007,981)

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Loss per share:
Basic and diluted $ (0.01) $ (0.01)
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Weighted average number of shares outstanding:
Basic and diluted 19,724,809 18,584,646
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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 a reliable, secure solution delivered for an affordable price and the only web-based software for local governments built on the Force.com, the cloud computing platform from SalesForce.com used by more than 55,000 organizations worldwide. BasicGov software requires only an Internet connection and a browser. Users pay a monthly subscription fee of $119 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.

Contacts

For more information about CloudBench Applications, Inc. and BasicGov visit www.basicgov.com, call +1 (877) 256-8385 or email info@basicgov.com.

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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