Texada Software Inc.
TSX VENTURE : TXS

Texada Software Inc.

July 10, 2007 10:27 ET

TEXADA Software: Exercise of Warrants, Conversion of Debt

- Exercise of 6M expiring warrants at $0.11, raising $660,000 - Conversion into common shares of $600,000 convertible debt at $0.10 per share

TORONTO, ONTARIO--(Marketwire - July 10, 2007) - Texada Software Inc., ("Texada"), (TSX VENTURE:TXS), announced today conversion of $600,000 in convertible debt at $0.10 per share and exercise of 6M warrants converting to common stock at $0.11 per share. The exercise of Warrants raised $660,000 which will be applied to working capital.

In August, 2005, the company issued 600 units of convertible debt. Each unit consisted of $1,000 principal amount 8 per cent senior secured convertible debentures (the "Debentures") and 10,000 warrants (the "Warrants"). The Debentures matured on June 30, 2007 and were convertible at the holder's option into common shares (the "Common Shares") of Texada at a conversion price of $0.10 per Common Share. Each Warrant entitled the holder to acquire one Common Share at any time up to June 30, 2007 at an exercise price of $0.11 per Common Share. Participants included senior management, new investors and existing shareholders.

All Debentures issued in this series have been converted into common shares at $0.10 per share and all Warrants were exercised into common shares at $0.11. Including debenture interest, which was also converted into common shares, Texada issued an additional 13,124,641 common shares. As of June 30, 2007, there are 64,729,683 common shares outstanding.

"Conversion of this, our first tranche of convertible debt as well as raising $660,000 in new cash, eliminates some of our debt and gives us additional working capital. The fact that all the debt converted and all the warrants were exercised demonstrates confidence by our investors in our strategy and our future" said Don Whitbeck, CEO of Texada.

Holders of the Convertible Debentures included Steven Lamb who converted $40,000 of Convertible Debentures, plus interest in exchange for 474,976 common shares of Texada. Prior to the conversion, Steven Lamb held 515,000 common shares of Texada representing 1% of the total number of common shares of Texada which were issued and outstanding at such time. After the conversion, Steven Lamb holds 989,976 common shares of Texada representing 1.53% of issued and outstanding common shares of Texada (assuming no other securities convertible into voting shares of Texada were converted or exercised to or after the conversion).

After giving effect to the Conversion, Steven Lamb directly or beneficially holds an aggregate of: (i) 8,173,577 common shares representing 12.63% of the issued and outstanding voting shares of Texada; (ii) 4,357,500 common share purchase warrants representing 20.07% of the total number of common share purchase warrants of Texada; and (iii) $275,000 principle amount of 8% convertible debentures (assuming no other securities convertible into voting shares of Texada were converted or exercised to or after the conversion).

1610488 Ontario Limited, a company controlled by Iqbal Kassam, converted $120,000 of Convertible Debentures, plus interest to acquire 1,424,928 common shares. Prior to the conversion, 1610488 Ontario Limited held 8,216,868 common shares of Texada representing 15.92% of the total number of common shares of the Texada which were issued and outstanding at such time. After the Conversion, Iqbal Kassam and 1610488 Ontario Limited directly or beneficially holds an aggregate of: (i) 9,641,796 common shares representing 14.9% of the issued and outstanding voting shares of Texada; (ii) 3,405,750 common share purchase warrants representing 15.68% of the total number of common share purchase warrants of Texada; and (iii) $162,000 principle amount of 8% convertible debentures (assuming no other securities convertible into voting shares of Texada were converted or exercised to or after the conversion).

More information may be found at www.sedar.com

About Texada Software (TXS: TSX Venture Exchange)

Texada Software Inc. is the premier provider of SYSTEMATIC enterprise software solutions for mobile equipment and rental management. Texada's solutions are fully flexible and scalable to meet the unique needs of any sized operation and are backed by proven implementation, services and support.

Texada's market-driven software products combine knowledge and best practices from over 400 customers worldwide, resulting in solutions that manage the complete asset life-cycle from acquisition through to disposal. Our customers enjoy the benefits of enhanced efficiency through better asset utilization, effective location tracking, and optimized scheduling.

Texada can be reached at 1-800-361-1233 or +1-519-836-7073, or on the internet at www.texadasoftware.com For product and services information visit www.systematic.com.

This news release may contain forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors Texada's ongoing quarterly filings should be consulted for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.

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

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