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CAM Commerce Solutions, Inc.

17075 Newhope Street
Fountain Valley, CA 92708

CAM Announces 1st Quarter Results

For Release After the Market Close
January 30, 2002

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

(FOUNTAIN VALLEY, CA) CAM Commerce Solutions (NASDAQ: CADA) announced that revenues for the three months ended December 31, 2001 decreased 6% to $4.9 million compared to the three months ended December 31, 2000. Net loss for the three months ended December 31, 2001 was $506,000 or $(0.17) per share compared to $614,000 or $(0.20) per share for the same period ended December 31, 2000. The company’s cash position as of December 31, 2001 was $9.6 million or $3.13 per share. The Company is debt free.

"After seeing an upward trend in the September quarter, we realized a 12 week period following the events of September 11th where new system purchases were virtually put on hold by large numbers of small retailers," stated Geoff Knapp, CEO of CAM Commerce Solutions. "This was compounded by the busy holiday season for retailers and the uncertainty surrounding expected sales. These combined factors caused us to have a quarter with lower sales than the first quarter of the 2001 fiscal year. During the last two weeks of December we saw a significant increase in new sales activity, which has continued through January. It is too early to tell but barring unforeseen events, it feels like our market is firming up and showing renewed signs of strength. I am optimistic that the December quarter was not an indicator of our future expected results and that the improvement we began to see in the September quarter is now taking hold again. In late January, we have trimmed over $500,000 per year in annual operating expenditures, which will help us return to profitability. This cost cutting will not impact our ability to take advantage of future growth opportunities. Furthermore, we generated positive cash flow during the quarter, finishing the quarter up slightly over the September quarter at $9.6 million or $3.13 per share."

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 BALANCE SHEETS
(In thousands, except per share data)

  THREE MONTHS ENDED
(Unaudited)
  DECEMBER 31
2001
DECEMBER 31
2000
REVENUES    
Net hardware, software and installation revenues $3,344 $3,782
Net service revenues 1,524 1,392
Total net revenues 4,868 5,174
COSTS AND EXPENSES    
Cost of hardware, software and installation revenues 1,849 1,959
Cost of service revenues 716 716
Total cost of revenues 2,565 2,675
Selling, general and administrative expenses 2,387 2,872
Research and development expenses 492 397
Interest income (70) (156)
Total costs and expenses 5,374 5,788
Loss before benefit for income taxes (506) (614)
Benefit for income taxes - -
Net loss and comprehensive loss $(506) $(614)
 
Basic net income per share $(0.17) $(0.20)
 
Diluted net income per share $(0.17) $(0.20)
 
Shares used in computing basic net income per share 3,025 3,018
 
Shares used in computing diluted net income per share 3,025 3,018

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

  DECEMBER 31
2001
(Unaudited)
SEPTEMBER 30
2001
ASSETS    
Current assets:    
Cash and cash equivalents $9,581 $9,451
Accounts receivable, net 1,555 2,262
Inventories 426 465
Other current assets 179 124
Total current assets 11,741 12,302
 
Property and equipment, net 706 763
Intangible assets, net 1,423 1,323
Other assets 452 408
Total assets $14,322 $14,796
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $546 $733
Accrued compensation and related expenses 504 522
Customer deposits and deferred service revenue 1,284 1,084
Other accrued liabilities 191 255
Total current liabilities 2,525 2,594
 
Stockholders' equity:    
Common stock, $.001 par value; 12,000    
shares authorized, 3,063 shares issued and    
outstanding at December 31, 2001 and 3,023 at    
September 30, 2001 3 3
Paid-in capital 13,729 13,628
Retained deficit (1,935) (1,429)
Retained earnings 11,797 12,202
Total stockholders' equity 11,797 12,202
Total stockholders' equity $14,322 $14,796

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