Municipal Solutions Group, Inc.

Municipal Solutions Group, Inc.

July 06, 2007 19:08 ET

Municipal Solutions Group Inc. Announces Completion of First Tranche of Non-Brokered Private Placement

VICTORIA, BRITISH COLUMBIA--(Marketwire - July 6, 2007) - Municipal Software (TSX VENTURE:MSZ) announced today that it has now closed the first tranche of its previously announced non-brokered private placement and raised gross proceeds of approximately $863,200. Under this first tranche of the financing, Municipal issued a total of 2,538,823 units, each unit consisting of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire an additional common share of Municipal at the price of $0.50 for a period of two years. The securities issued are subject to a hold period and may not, subject to certain exceptions, be traded until November 7, 2007.

Municipal intends to use the net proceeds from the financing for working capital and other general corporate purposes.

Pender Growth Fund (VCC) Inc. ("Pender") and other insiders of Municipal Software participated in this first tranche of the financing and Pender's participation included the conversion of approximately $300,000 in debt previously provided by Pender to Municipal.

As previously announced, Municipal Software intends to raise up to $1 million under this financing and, as such, is working towards completing a second tranche of the financing in the near future.

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 25 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. The company recently launched web-based services under the Local Government Manager ™ name for jurisdictions looking for the convenience and cost effectiveness of a hosted application. 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.

If you would like to be included on our regular distribution please email us at

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

Contact Information