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CAM Commerce Solutions, Inc.

17075 Newhope Street
Fountain Valley, CA 92708

CAM Reports Fourth Quarter Profit Increase
EPS of 8 cents versus 2 cents in Q4 2002

November 12, 2003

Contact: Mathew Hayden, President
Hayden Communications, Inc.
858-704-5065

(FOUNTAIN VALLEY, CA) CAM Commerce Solutions, Inc. (NASDAQ: CADA) reported revenues of $5.2 million for the three months ended September 30, 2003, compared to $5.5 million for the fourth quarter of fiscal 2002. Net income for the three months ended September 30, 2003 was $276,000 or $0.08 per share, compared to $52,000 or $0.02 per share for the quarter ended September 30, 2002.

Revenues for the fiscal year ended September 30, 2003 were $20.1 million compared to $20.5 million for fiscal year ended September 30, 2002. Net loss for the year ended September 30, 2003 was $(134,000) or $(0.04) per share, compared to a profit of $284,000 or $0.09 per share for the year ended September 30, 2002. The net income for fiscal 2002 included an income tax benefit of $365,000 and a $715,000 pre-tax gain from the sale of the Company’s Access Retail Management (Access) consulting business. Fiscal 2002 also included consulting revenues of $465,000 generated from the Access consulting business that was sold in May 2002. As of September 30, 2003, the Company had $12.4 million in cash and marketable securities, or $3.82 per share based on shares outstanding at September 30, 2003, compared to $10.6 million at September 30, 2002, or $3.41 per share based on shares outstanding at September 30, 2002.

"I feel this quarter's results showed solid evidence that we are on track with the financial and strategic goals we have been stating for the past two years," said Geoff Knapp, CEO. "While system sales were slow for the quarter, we were able to improve our bottom line and deliver a respectable profit. This is almost entirely attributable to our continued growth in X-Charge payment processing revenues and reduced expense levels achieved over the past couple of quarters. X-Charge revenue more than doubled in the 4th quarter as compared to the same quarter in the prior year, and also more than doubled for the fiscal year. We generated $1.8 million in cash this past year and we believe our outlook is bright. We have put our company in a position to succeed even if we continue to experience the challenging market conditions of the past few years. X-Charge sign-ups are continuing at historical highs and I am also optimistic we will see improvements in our core system sales business in 2004."

Calculation of Cash and Marketable Securities Per Share

  SEPTEMBER 30
2003
SEPTEMBER 30
2002
Cash and cash equivalents $10,889,000 $9,093,000
Marketable available-for-sale securities 1,541,000 1,519,000
Total cash and marketable securities (numerator) $12,430,000 $10,612,000
Shares outstanding (denominator) 3,253,000 3,109,000
Cash and marketable securities per share $3.82 $3.41

About CAM Commerce Solutions

CAM Commerce Solutions, Inc. provides total commerce solutions for traditional and web retailers that are based on the Company’s open architecture software products for inventory management, point of sale, sales transaction processing, accounting, and payment processing. These solutions often include hardware, installation, training, service, and payment processing services provided by the Company. You can visit CAM Commerce Solutions at www.camcommerce.com.

Important Information

The statements made in this news release, including those relating to the expectations of profitability and economic climates, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Words such as “will,” “should,” “believe,” “expect,” “anticipate,” “outlook,” “forecast,” “optimistic,” “feel,” “potential,” “continue,” “intends,” “plans,” “estimates,” “may,” “seeks,” “would,” “future,” “bright,” and other similar expressions that predict or indicate future events or trends, or that are not statements of historical matters, identify forward-looking statements. Expectations concerning financial results for future quarters are not actual results and are based upon preliminary estimates, as well as certain assumptions management believes to be reasonable at this time. Investors should not rely upon forward looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations, and the company expressly does not undertake any duty to update forward-looking statements which speak only as of the date of this news release. The performance of any one quarter may not be indicative of future performance, particularly given prevailing market and economic uncertainties. In addition to the factors set forth elsewhere in this release, the economic, competitive, technological, and other factors identified in CAM Commerce Solutions’ filings with the Securities and Exchange Commission could affect the forward looking statements contained in this news release.

CAM COMMERCE SOLUTIONS, INC.
CONDENSED STATEMENT OF INCOME
(Unaudited)
(In thousands, except per share data)

  THREE MONTHS ENDED TWELVE MONTHS ENDED
  SEPT. 30
2003
SEPT. 30
2002
SEPT. 30
2003
SEPT. 30
2002
REVENUES        
Net hardware, software and installation revenues $3,269 $3,874 $13,072 $14,052
Net service revenues 1,897 1,604 7,057 6,423
Total net revenues 5,166 5,478 20,129 20,475
COSTS AND EXPENSES        
Cost of hardware, software and installation revenues 1,621 1,809 6,459 6,987
Cost of service revenues 528 541 2,157 2,650
Total cost of revenues 2,149 2,350 8,616 9,637
Selling, general and administrative expenses 2,495 2,570 10,255 9,956
Research and development expenses 298 438 1,648 1,804
Total costs and operating expenses 4,942 5,358 20,519 21,397
Operating income (loss) 224 120 (390) (922)
Interest income (71) (77) (280) (261)
Income (loss) before provision for income taxes 295 62 (110) (81)
Provision for income taxes 19 10 24 (365)
Net income (loss) $276 $52 $(134) $284
 
Basic net income (loss) per share $0.09 $0.02 $0.04 $0.09
Diluted net income (loss) per share $0.08 $0.02 $(0.04) $0.09
 
Shares used in computing basic net income (loss) per share 3,220 3,093 3,143 3,060
 
Shares used in computing diluted net income (loss) per share 3,440 3,180 3,143 3,189

CAM COMMERCE SOLUTIONS, INC.
CONDENSED BALANCE SHEETS
(In thousands, except per share data)

  SEPTEMBER 30
2003
SEPTEMBER 30
2002
ASSETS    
Current assets:    
Cash and cash equivalents $10,889 $9,093
Marketable available-for-sale securities 1,541 1,519
Accounts receivable, net 1,214 1,842
Inventories 272 324
Other current assets 102 146
Total current assets 14,018 12,924
 
Property and equipment, net 710 972
Intangible assets, net 908 1,177
Other assets 305 338
Total assets $15,941 $15,411
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $518 $563
Accrued compensation and related expenses 687 547
Deferred service revenue and customer deposits 1,455 1,295
Other accrued liabilities 263 235
Total current liabilities 2,923 2,640
Long-term liabilities:    
Notes payable - 13
Total liabilities 2,923 2,653
Stockholders' equity:    
Common stock, $.001 par value; 12,000    
shares authorized, 3,253 shares issued and    
outstanding at September 30, 2003 and 3,109 at    
September 30, 2002 3 3
Paid-in capital 14,271 13,886
Accumulated other comprehensive income 23 14
Retained earnings (accumulated deficit) (1,279) (1,145)
Total stockholders' equity 13,018 12,758
Total liabilities and stockholders' equity $15,941 $15,411

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