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CAM Commerce Solutions, Inc.

17075 Newhope Street
Fountain Valley, CA 92708

CAM Reports 2nd Quarter Results

May 2, 2005

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

(FOUNTAIN VALLEY, CA) CAM Commerce Solutions, Inc. (NASDAQ: CADA) reported a slight increase in revenues to $5.9 million for the three months ended March 31, 2005 compared to $5.8 million for the same quarter of fiscal 2004. Income before income tax provisions for the three months ended March 31, 2005 decreased to $252,000, compared to $512,000 for the same period ended March 31, 2004. Net income for the three months ended March 31, 2005 decreased to $150,000 or $0.04 per fully diluted share, compared to $475,000 or $0.12 per share for the quarter ended March 31, 2004.

For the six months ended March 31, 2005, revenue increased 9% to $12.1 million compared to $11.1 million for the same period in fiscal 2004. Earnings before provisions for income taxes for the six month period ended March 31, 2005 improved slightly to $925,000, compared to $916,000 for the same period of last year. Net income for the six months ended March 31, 2005 decreased to $552,000 or $0.14 per fully diluted share, compared to $850,000 or $0.23 per share for the six months ended March 31, 2004.

Results for the three and six months ended March 31, 2005 include federal tax provision, whereas for the same periods in fiscal 2004, no federal tax provision was recorded due to the utilization of net operating loss carryforwards.

The company's CEO, Geoff Knapp commented, “The quarter ended March 31, 2005 was negatively impacted by lower than expected new system sales and an increase in expense primarily related to the timing of marketing expenditures and the increase in the operational costs of our X-Charge operations as related to the growth we are experiencing in this area of our business. It is too early to say whether or not we are experiencing any type of longer term slow down on the system sales side but we are taking steps to adapt this part of our business to be more flexible. Right now we are treating the shortfall as a sales execution issue and are working to improve in this area.

Our X-Charge payment processing revenues continued to show strong growth and provided solid results. For comparison purposes between the quarters ended March 31, 2005 and 2004, the amounts will not be directly comparable due to the change in accounting estimate for X-Charge revenues that occurred in June of last year. The comparison of the six month periods ended March 31, 2005 and 2004 better reflects the growth rate in X-Charge revenues, which increased 81%.

Our cash flow remained strong during the quarter. Cash and marketable securities increased $800,000 over last quarter, from $18.0 million to $18.8 million. In summary, we are not happy about the softness we experienced during the quarter in system sales and we are addressing this. At the same time we are very happy with the continued growth of our X-Charge revenues. ”

About CAM Commerce Solutions

CAM Commerce Solutions 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

Certain statements made in this release, including those relating to the expectations of profitability and economic climates, are forwardlooking 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,” “goal,” “plans,” “estimates,” “may,” “seeks,” “would,” “future,” “bright,” “projected,” 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 management's expectations, and the company does not undertake any duty to update forward-looking statements which speak only as of the date of this release. The performance of any one month or 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 release.

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

  THREE MONTHS ENDED SIX MONTHS ENDED
  MARCH 31
2005
MARCH 31
2004
MARCH 31
2005
MARCH 31
2004
REVENUES        
Net hardware, software and installation revenues $3,227 $3,583 $6,575 $6,820
Net service revenues 1,322 1,384 2,727 2,762
Net payment processing revenues 1,353 833 2,750 1,518
Total net revenues 5,902 5,800 12,052 11,100
COSTS AND EXPENSES        
Cost of hardware, software and installation revenues 1,730 1,687 3,414 3,328
Cost of service revenues 539 511 1,051 1,019
Cost of payment processing revenues 107 45 249 83
Total cost of revenues 2,376 2,243 4,714 4,430
Selling, general and administrative expenses 2,991 2,747 5,872 5,168
Research and development expenses 410 380 777 749
Interest income (127) (82) (236) (163)
Total costs and expenses 5,650 5,288 11,127 10,184
Income before provision for income taxes 252 512 925 916
Provision for income taxes 102 37 373 66
Net income $150 $475 $552 $850
 
Basic net income per share $0.04 $0.14 $0.15 $0.25
 
Diluted net income per share $0.04 $0.12 $0.14 $0.23
 
Shares used in computing basic net income per share 3,813 3,484 3,800 3,384
 
Shares used in computing diluted net income per share 4,073 3,920 4,063 3,744

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

  MARCH 31
2005
(Unaudited)
SEPTEMBER 30
2004
ASSETS    
Current assets:    
Cash and cash equivalents $16,994 $16,591
Marketable available-for-sale securities 1,792 1,109
Accounts receivable, net 1,892 1,919
Inventories 384 361
Deferred income taxes 1,288 1,629
Other current assets 113 137
Total current assets 22,463 21,746
 
Deferred income taxes 1,175 780
Property and equipment, net 634 639
Intangible assets, net 563 679
Other assets 57 80
Total assets $24,892 $23,924
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $581 $550
Accrued compensation and related expenses 835 1,093
Deferred service revenue and customer deposits 1,692 1,628
Other accrued liabilities 307 357
Total current liabilities 3,415 3,628
Stockholders' equity:    
Common stock, $.001 par value; 12,000    
shares authorized, 3,825 shares issued and    
outstanding at March 31, 2005 and 3,754 at    
September 30, 2004 4 4
Capital in excess of par value 19,981 19,328
Accumulated other comprehensive loss (22) 2
Retained earnings 1,514 962
Total stockholders' equity 21,477 20,296
Total stockholders' equity $24,892 $23,924

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