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CAM Commerce Solutions, Inc.

17075 Newhope Street
Fountain Valley, CA 92708

CAM Reports 4th Quarter & Year End Results
September Quarter Earnings up 143% on 21% Revenue Increase.

November 15, 2004

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

(FOUNTAIN VALLEY, CA) CAM Commerce Solutions, Inc. (NASDAQ: CADA) today reported revenues of $6.3 million for the three months ended September 30, 2004, compared to $5.2 million for the fourth quarter of fiscal 2003, an increase of 21%. Net income for the three months ended September 30, 2004 rose substantially to $670,000 or $0.16 per fully diluted share, compared to $276,000 or $0.08 per share for the quarter ended September 30, 2003.

Revenues for the fiscal year ended September 30, 2004 increased 17% to $23.6 million, compared to $20.1 million for fiscal year 2003. Net income for the year rose to $2.2 million or $0.57 per fully diluted share, compared to a loss of $134,000 or ($0.04) per share for fiscal year 2003. The results for fiscal 2004 included $170,000 in additional revenue and $126,000 in net income, related to a change in the accounting estimate for payment processing revenues from the Company's X-Charge business, which was recorded in third quarter ended June 30, 2004. If the change in accounting estimate had not occurred, revenues and net income for fiscal 2004 would have been $23.5 million and $2.1 million or $0.54 per fully diluted share, respectively. The change in accounting estimate resulted from the Company’s ability to better estimate the payment processing revenues based on the accumulation of sufficient historical information required to analyze trends and formulate a reasonable estimate. Prior to the change in accounting estimate, payment processing revenues were recognized on a cash basis due to the lack of historical information available to make a reliable estimate.

As of September 30, 2004, cash and marketable securities rose to $17.7 million or $4.71 per outstanding share, compared to $12.4 million or $3.82 per outstanding share at the beginning of the year. The company remains debt free.

The operating results included income tax provision for the State of California based on California’s suspension of the use of net operating loss carryforwards. The Company did not pay Federal income taxes during the September quarter, or fiscal year due to the use of net operating loss carryforwards. The Company expects to have both federal and state income tax provision in fiscal 2005.

“This past year was the most gratifying and rewarding in our history,” stated Geoff Knapp, Chairman and CEO of CAM Commerce Solutions. We succeeded on all levels and the financial results speak for themselves. Our traditional systems business saw revenue growth of approximately 10%, while our X-Charge payment processing revenues grew 132% over the prior year. The increase in higher margin, recurring revenues resulted in an overall gross margin increase of 4% over the prior year. While SG&A expenses rose 6%, most of the increase is attributable to higher sales commissions paid on higher system and X-Charge revenues. We exceeded all of our financial goals for the year, and more importantly we have proven that we have built a business model which works well and that we can build on for the foreseeable future.” Mr. Knapp further stated, “Not only were our financial results excellent this past year, we also released significant new versions of nearly all our software products that will be very meaningful for our customers in helping them to be better retailers. This puts us in an enviable position in the market as we move into 2005 with the goal of leveraging what we have built into increased market share and continually improving financial performance.”

Calculation of Cash and Marketable Securities Per Share

  SEPTEMBER 30
2004
SEPTEMBER 30
2003
Cash and cash equivalents $16,591,000 $10,889,000
Marketable available-for-sale securities 1,109,000 1,541,000
Total cash and marketable securities (numerator) $17,700,000 $12,430,000
Shares outstanding (denominator) 3,754,000 3,253,000
Cash and marketable securities per share $4.71 $3.82

Calculation of the Effect of Change in Accounting Estimate

  TWELVE MONTHS
SEPTEMBER 30, 2004
 
Revenuess $23,634,0000
Effect of change in accounting estimate (170,000)
Revenues without change in accounting estimate $23,464,000
 
Net income $2,241,000
Effect of change in accounting estimate (126,000)
Net income without change in accounting estimate $2,115,000
Diluted net income per share $0.57
Diluted net income per share without change in accounting estimate $0.54
Shares used in computing diluted net income per share 3,937,000

About CAM Commerce Solutions

CAM Commerce Solutions, Inc. provides total commerce solutions for traditional and web open architecture software products for inventory management, point of sale, sales transaction processing. These solutions often include hardware, installation, training, service, and payment 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 forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation “will,” “should,” “believe,” “expect,” “anticipate,” “outlook,” “forecast,” “optimistic,” “feel,” “goal,” “plans,” “estimates,” “may,” “seeks,” “would,” “future,” “bright,” “projected”, and indicate future events or trends, or that are not statements of historical matters, identify forward- concerning financial results for future quarters are not actual results and are based upon preliminary assumptions management believes to be reasonable at this time. Investors should not rely upon they are subject to a variety of risks, uncertainties, and other factors that could cause actual expectations, and the company expressly does not undertake any duty to update forward-looking date of this news release. The performance of any one month or quarter may not be indicative given prevailing market and economic uncertainties. In addition to the factors set forth elsewhere competitive, technological, and other factors identified in CAM Commerce Solutions’ filings 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
2004
SEPT. 30
2003
SEPT. 30
2004
SEPT. 30
2003
REVENUES        
Net hardware, software and installation revenues $3,788 $3,269 $14,420 $13,072
Net service revenues 1,405 1,390 5,541 5,474
Net payment processing revenues 1,069 507 3,673 1,583
Total net revenues 6,262 5,166 23,634 20,129
COSTS AND EXPENSES        
Cost of hardware, software and installation revenues 1,787 1,614 7,015 6,452
Cost of service revenues 514 497 2,035 2,045
Cost of payment processing revenues 90 38 224 119
Total cost of revenues 2,391 2,149 9,274 8,616
Selling, general and administrative expenses 2,961 2,495 10,872 10,255
Research and development expenses 372 298 1,508 1,648
Total costs and operating expenses 5,724 4,942 21,654 20,519
Operating income (loss) 538 224 1,980 (390)
Interest income 111 71 361 280
Income (loss) before provision for income taxes 649 295 2,341 (110)
Provision (benefit) for income taxes (21) 19 100 24
 
Net income (loss) $670 $276 $2,241 $(134)
 
Basic net income (loss) per share $0.18 $0.09 $0.63 $(0.04)
Diluted net income (loss) per share $0.16 $0.08 $0.57 $(0.04)
 
Shares used in computing basic net income (loss) per share 3,745 3,220 3,543 3,143
 
Shares used in computing diluted net income (loss) per share 4,197 3,440 3,937 3,143

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

  SEPTEMBER 30
2004
SEPTEMBER 30
2003
ASSETS    
Current assets:    
Cash and cash equivalents $16,591 $10,889
Marketable available-for-sale securities 1,109 1,541
Accounts receivable, net 1,919 1,214
Inventories 361 272
Other current assets 137 102
Total current assets 20,117 14,018
 
Property and equipment, net 639 710
Intangible assets, net 679 908
Other assets 80 305
Total assets $21,515 $15,941
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable $550 $518
Accrued compensation and related expenses 1,093 687
Deferred service revenue and customer deposits 1,628 1,455
Other accrued liabilities 357 263
Total current liabilities 3,628 2,923
Stockholders' equity:    
Common stock, $.001 par value; 12,000    
shares authorized, 3,754 shares issued and    
outstanding at September 30, 2004 and 3,253 at    
September 30, 2003 4 3
Paid-in capital 16,919 14,271
Accumulated other comprehensive income 2 23
Retained earnings (accumulated deficit) 962 (1,279)
Total stockholders' equity 17,887 13,018
Total liabilities and stockholders' equity $21,515 $15,941

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