SOURCE: Propalms USA, Inc.

June 14, 2007 08:31 ET

Propalms USA, Inc.'s Wholly Owned Subsidiary, Propalms Ltd., Increased Revenue by Approximately 400% From Previous Year

NORTH YORKSHIRE, UK--(Marketwire - June 14, 2007) - Propalms USA, Inc. (PINKSHEETS: PRPM) is pleased to announce that its wholly owned subsidiary, Propalms Ltd., increased sales of its TSE software by approximately 400 percent for the fiscal year end January 31, 2007, versus the fiscal year end January 31, 2006. Sales of the Company's TSE software generated $708,434 in revenue for their fiscal year ending January 31, 2007, whereas Propalms Ltd. generated $142,009 in revenue for the fiscal year ending January 31, 2006. The Company also increased its assets to $405,507 for its fiscal year ending January 31, 2007, from $167,054 for its fiscal year ending January 31, 2006, representing a 142 percent increase.

Propalms USA, Inc.'s British subsidiary, Propalms Ltd. has unaudited financial statements, which can be viewed at www.pinksheets.com or at the Company's Web site, www.propalms.com. The Company's consolidated unaudited financial statements will be released by the end of the week. ProPalms has completed its audit for 2006, and the 2007 financials have been reviewed by their new auditors, Kabani & Company, Inc. The Company is currently preparing to uplist to the OTC Bulletin Board or higher exchange.

Propalms USA, Inc.'s revenue is made up from new license sales, expansion licenses to existing customers, as well as annual renewal for maintenance. The Company has made the decision to take the conservative approach that complies fully with U.S. GAAP accounting rules. Propalms USA, Inc. accounts are based on revenue recognition in accordance with Software Revenue Recognition SOP 97-2. The full explanation is detailed in the financial accounts.

"We are exceptionally pleased with the revenue that our British subsidiary has generated this past year and are looking forward to seeing that number continue to grow. We have truly become a global company with sales of our TSE product to major organizations from North America to Asia," stated Robert Zysblat, President of Propalms USA, Inc.

Propalms recently announced that the Company has increased its sales transactions for the first quarter of 2007 by 28 percent, as compared to the first quarter of 2006. The first quarter sales do not include Propalms' agreement to supply the Toyota Group with the TSE software on a worldwide exclusive basis. Propalms USA signed the agreement with TT Network Integration (Thailand) Co., Ltd., who will supply Propalms TSE software throughout Thailand and exclusively to the Toyota Group on a worldwide basis. Toyota Group has over 286,000 employees worldwide, which has the potential to generate over $3.2 million in sales transactions.

About Propalms USA, Inc.:

Propalms USA, Inc. sells a software product called Terminal Services Edition (TSE), which is a complete management product for the Microsoft server-based computing environment

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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