CAM Commerce Solutions, Inc.

17075 Newhope Street
Fountain Valley, CA 92708

January 31, 2001

Contact: Contact: David Frosh, President
CAM Commerce Solutions, Inc.
714-241-9241 Ext. 282

(FOUNTAIN VALLEY, CA) CAM Commerce Solutions (NASDAQ: CADA) announced that earnings (loss) for the three months ended 12/31/00 were ($600,000) or ($.20) per share vs. a profit of $220,000 or $.08 per share for the same quarter in 1999. Revenues for the three months ended 12/31/00 were $5.2 million vs. $6.6 million. Earnings (loss) before depreciation and amortization (EBIDA) was ($229,000). The company’s cash balance at 12/31/00 was $9.1 million or $3.03 per share.

"We are of course, not happy with our financial results, stated Geoff Knapp, CEO of CAM Commerce Solutions. The results speak for themselves. Sales were not as high as we hoped they would be and our MicroBiz acquisition has been a significant drain, which we did not expect. We are in the process of improving this situation. We are however happy with the progress we have made in many areas which has moved us much closer to our goal of being a "total infrastructure provider" for the automation needs of the small to medium size retailer.

In November we introduced our X-Charge payment processing software, which was the result of our alliance with NDC. This alliance, which was announced in April of last year, allows CAM to earn credit card processing income from our customers who utilize the X-Charge software while we are generally saving these customers money on their processing fees. It is a win/win situation for CAM and our customers. Early results have exceeded our expectations. We are now looking at rolling out this software faster and on a more widespread basis, which will require additional investment, although not significant.

During the quarter we introduced version 2.0 of our i.STAR integrated web storefront, which was developed entirely in-house verses using outside contractors for part of the work as we did with version 1.0. Version 1.0 was not as flexible as we would have hoped in meeting the needs of different types of retailers. Version 2.0 is a product we are very happy with and as a result we are now in a position to see i.STAR finally begin to pay off. Having said that, we have found the e-commerce sell, a far more difficult one with small retailers than we might have imagined. With the failure of so many Internet retailers, the pressure to have an Internet strategy for the small retailer seems to have lost its sense of urgency. This is a market that will require a large amount of education and will as a result develop more slowly. We have seven sites up now on version 2.0 and are currently working on many more.

Having a complete accounting solution is something every retailer needs, yet in the past they have been forced to utilize separate accounting packages and attempt to integrate them with their retail software. This integration has usually proven to be limited and problematic in most cases. We are very close to releasing our complete Star accounting series that is an integral part of our Retail STAR® product. This is the result of the acquisition of Cubig, LTD., that we announced over a year ago. This product is very unique in the market place. We are not aware of any competitor that can offer a fully integrated Windows accounting suite as part of their retail management system, much less one with the power and ease of use of our Star accounting. And remember, every business needs accounting. We think this will give us a significant advantage in the market place.

During the quarter we acquired Genesis Software for cash. Genesis added approximately 500 customers and over $500k in recurring service revenue, along with an excellent upgrade opportunity as all Genesis customers are operating on older technology. The Genesis customers are also candidates to utilize X-Charge.

We announced an alliance with eBay in December that will allow us to provide yet another important and unique feature to our product that will allow retailers to place, track, manage, report on and fulfill auctions from their CAM POS system. We expect to have the software ready to deliver in the second half of the year which will provide us with another transaction based revenue opportunity as well as access to the eBay customer base in terms of exposure.

Realistically, we expect to have narrowing losses in the March and possibly the June quarter, with a return to profitability by the September quarter. We expect losses for the remainder of the year in the range of $500,000 to $1 million dollars. This forecast is based on market conditions in our sector improving slightly. Should we see market conditions worsen such as in the case of a general recession things could be different. We have plenty of cash with $9 million in the bank to carry out our plans and until and unless we see that the things we are doing are not working we plan to stay the course on the plans and strategies we have laid out as they look promising right now."

About CAM Commerce Solutions

CAM Commerce Solutions, Inc. (formerly CAM Data Systems, Inc.), provides total commerce solutions for traditional as well as web retailers that are based on the company’s open architecture software products for managing inventory, point of sale, sales transaction processing, and accounting. These solutions often include hardware, installation, training, service, and consulting provided by the Company. CAM has more than 10,000 retail customers with many more store locations utilizing its systems to manage their business. You can visit CAM Commerce Solutions at www.camcommerce.com.

Important Information

The statements made in this press release could be forward looking statements based on expectations that involve a number of risks and uncertainties. The factors that could cause actual results to differ materially include the following: economic conditions; competitive factors and pricing pressures; changes in product mix; technological developments affecting the company’s operations, market, products; and other factors discussed in the company’s filings with the Securities and Exchange Commission.

	THREE MONTHS ENDED (Unaudited)
	DECEMBER 31 2000	DECEMBER 31 1999
REVENUES
Net system revenues	$3,782	$5,477
Net service revenues	1,392	1,162
Total net revenues	5,174	6,639
COSTS AND EXPENSES
Costs of system revenues	1,959	2,935
Costs of service revenues	716	622
Total cost of revenues	2,675	3,557
Selling, general and administrative expenses	2,872	2,445
Research and development expenses	397	346
Interest income	(156)	(48)
Total costs and expenses	5,788	6,300
Income (loss) before provision (benefit) for income taxes	(614)	339
Benefit for income taxes	-	119
Net income (loss)	$(614)	$(220)
Basic net income (loss) per share	$(0.20)	$(0.10)
Diluted net income (loss) per share	$(0.20)	$(0.08)
Shares used in computing basic net income (loss) per share	3,018	2,309
Shares used in computing diluted net income (loss) per share	3,018	2,711

	DECEMBER 31 2000 (Unaudited)	SEPTEMBER 30 2000 (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$9,147	$10,444
Accounts receivable, net	2,096	1,782
Inventories	678	696
Other current assets	930	893
Total current assets	12,851	13,815
Property and equipment, net	927	922
Intangible assets, net	3,665	3,262
Other assets	297	297
Total assets	$17,740	$18,296
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$692	$644
Accrued compensation and related expenses	526	477
Customer deposits and deferred service revenue	995	854
Other accrued liabilities	171	373
Total current liabilities	2,384	2,348
Deferred income taxes	91	91
Stockholders' equity:
Common stock, $.001 par value; 12,000 shares authorized
shares issued and outstanding 3,020
at March 31, 2001	3	3
Paid-in capital	13,607	13,585
Retained earnings (accumulated deficit)	1,655	2,269
Total stockholders' equity	15,265	15,857
Total liabilities and stockholders' equity	$167,740	$18,296

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