Municipal Solutions Group, Inc.
TSX VENTURE : MSZ

Municipal Solutions Group, Inc.

September 18, 2007 16:00 ET

Municipal Solutions Group, Inc. Announces Execution of $300,000 Secured Loan Facility

VICTORIA, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2007) - Municipal Solutions Group, Inc. ("Municipal Solutions") (TSX VENTURE:MSZ) announced that it has entered into a loan facility agreement (the "Loan Agreement") with its largest shareholder, Pender Growth Fund (VCC) Inc. ("Pender").

Under the terms of the Loan Agreement, Municipal Solutions may borrow up to $300,000 from Pender in one or more drawdowns. All amounts outstanding under the Loan Agreement from time to time bear interest at a rate of 18% per annum and are repayable in full on February 28, 2008. In addition, to secure repayment of all amounts owing under the Loan Agreement, Municipal Solutions has entered into a general security agreement with Pender pursuant to which it has granted to Pender a security interest over all of its present and after acquired property.

In accordance with the terms of the Loan Agreement, Municipal Solutions has drawn down the first $100,000. Municipal Solutions intends to use the net proceeds any such drawdowns for working capital and other general corporate purposes.

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.

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