SOURCE: Propalms, Inc.

July 10, 2007 08:31 ET

Propalms, Inc. Increases Sales Transactions by 83% in June 2007 as Compared to June 2006

Company Generates Pipeline With an Excess of $1 Million in Potential Sales Transactions

NORTH YORKSHIRE, UK--(Marketwire - July 10, 2007) - Propalms, Inc. (PINKSHEETS: PRPM) is pleased to announce that the Company has increased its sales transactions by 83 percent for June 2007 as compared to June 2006. In June of this year, Propalms, Inc. invoiced over $93,000 in sales transactions versus invoiced sales transactions for approximately $50,000 in June of 2006.

In June Propalms won a number of major new customers. Some of the organizations and companies include the Alzheimer's Association of the United States, City of Santa Barbara, California, Svea Ekonomi AB of Sweden, Rosier Services GMBH of Germany, and Lelli Kellp SPA of Italy.

"I am pleased to report a further substantial increase in our current June invoiced sales of TSE as compared to June 2006. The Company is continuing to attract new customers and I am hopeful that this positive trend will continue throughout our current financial year. Our current pipeline is in excess of one million dollars and is at its highest point since we started to trade in July 2005. The Company is reaching a key inflexion point, where the snowball effect of more customer wins, and rollout of licenses to existing customers, as well as the yearly maintenance, will add real value to all our shareholders," stated Robert Zysblat, President of Propalms, Inc.

Propalms revenue is made from new license sales, expansion licenses to existing customers, as well as annual renewal of licenses for maintenance. The Company has made the decision to take the conservative approach that complies fully with U.S. GAAP accounting rules. Propalms, Inc.'s accounts are based on revenue recognition in accordance with Software Revenue Recognition SOP 97-2. Revenue is based upon a subscription model and the revenue amount is deferred over the life of the license and maintenance contract. The above figures are sales transactions that are invoiced in the current months.

About Propalms, Inc.:

Propalms TSE, the complete Server-Based Management solution that extends Microsoft Terminal Services 2000/2003, offers features as Application Publishing, Seamless Windows, Resource-based Load balancing, and Web-based consoles.

Statements contained in this news release, other than those identifying historical facts, constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company's future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbors protection. Actual company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements.

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