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CAM Commerce Solutions, Inc.

17075 Newhope Street
Fountain Valley, CA 92708

April X-Charge New Business Sets New High

April 26, 2004

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

(FOUNTAIN VALLEY, CA) CAM Commerce Solutions, Inc. (NASDAQ: CADA) reported an 18% increase in revenues to $5.8 million for the three months ended March 31, 2004 compared to $4.9 million for the same quarter of fiscal 2003. Net income for the three months ended March 31, 2004 rose substantially to $475,000 or $0.12 per fully diluted share, compared to a net loss of $(312,000) or $(0.10) per share for the quarter ended March 31, 2003. The March 2004 quarter was the company’s fourth consecutive profitable quarter and sixth consecutive quarter of increased revenues. It was also the fourth consecutive quarterly profit increase.

For the six months ended March 31, 2004, revenue increased 13% to $11.1 million compared to $9.8 million for the same period in fiscal 2003. Net income for the six months ended March 31, 2004 increased to $850,000 or $0.23 per fully diluted share, compared to a net loss of $(496,000) or $(0.16) per share for the six months ended March 31, 2003.

As of March 31, 2004, the company had $15.4 million in cash and marketable securities, or $4.32 per share based on shares outstanding at March 31, 2004, compared to $12.4 million at September 30, 2003, or $3.82 per share based on shares outstanding at September 30, 2003.

The results included income tax expense for the State of California, based on California’s suspension of the use of net operating loss carryforwards. The company does not currently pay Federal income taxes due to the utilization of net operating loss carryforwards.

The company's CEO, Geoff Knapp commented, “The current quarter continues our upward trend of revenues and profits. This trend is the result of our significantly improved business model, which emphasizes high margin, recurring revenues. Even with seasonally higher marketing expense in the March quarter, we were able to show a sequential increase in earnings for the fourth consecutive quarter. The increase in revenues and profits was driven primarily by our X-charge payment processing business where revenues doubled again on a quarter over quarter basis as compared to the prior year. System revenues were also higher and contributed to the increase in profits.”

Calculation of Cash and Marketable Securities Per Share

  MARCH 31
2004
(Unaudited)
SEPTEMBER 30
2003
Cash and cash equivalents $14,086,000 $10,889,000
Marketable available-for-sale securities 1,269,000 1,541,000
Total cash and marketable securities (numerator) $15,355,000 $12,430,000
Shares outstanding (denominator) 3,558,000 3,253,000
Cash and marketable securities per share $4.32 $3.82

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 NINE MONTHS ENDED
  MARCH 31
2004
MARCH 31
2003
MARCH 31
2004
MARCH 31
2003
REVENUES        
Net hardware, software and installation revenues $3,583 $3,170 $6,820 $6,390
Net service revenues 2,217 1,749 4,280 3,409
Total net revenues 5,800 5,164 11,100 9,799
COSTS AND EXPENSES        
Cost of hardware, software and installation revenues 1,700 1,639 3,353 3,228
Cost of service revenues 543 552 1,077 1,073
Total cost of revenues 2,243 2,191 4,430 4,301
Selling, general and administrative expenses 2,747 2,608 5,168 5,166
Research and development expenses 380 495 749 965
Interest income (82) (63) (163) (137)
Total costs and expenses 5,288 5,231 10,184 10,295
Income (loss) before provision for income taxes 512 (312) 916 (496)
Provision for income taxes 37 - 66 -
Net income (loss) $475 $(312) $850 $(496)
 
Basic net income (loss) per share $0.14 $(0.10) $0.25 $(0.16)
Diluted net income (loss) per share $0.12 $(0.10) $0.23 $(0.16)
 
Shares used in computing basic net income (loss) per share 3,484 3,109 3,384 3,109
 
Shares used in computing diluted net income (loss) per share 3,920 3,109 3,744 3,109

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

  MARCH 31
2004
(Unaudited)
SEPTEMBER 30
2003
ASSETS    
Current assets:    
Cash and cash equivalents $14,086 $10,889
Marketable available-for-sale securities 1,269 1,541
Accounts receivable, net 1,218 1,214
Inventories 345 272
Other current assets 145 102
Total current assets 17,063 14,018
 
Property and equipment, net 606 710
Intangible assets, net 801 908
Other assets 271 305
Total assets $18,741 $15,941
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $479 $518
Accrued compensation and related expenses 858 687
Deferred service revenue and customer deposits 1,735 1,455
Other accrued liabilities 264 263
Total current liabilities 3,336 2,923
Stockholders' equity:    
Common stock, $.001 par value; 12,000    
shares authorized, 3,558 shares issued and    
outstanding at March 31, 2004 and 3,253 at    
September 30, 2003 4 3
Paid-in capital 15,826 14,271
Accumulated other comprehensive income 4 23
Retained earnings (accumulated deficit) (429) (1,279)
Total stockholders' equity 15,405 13,018
Total liabilities and stockholders' equity $18,741 $15,941

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