PRESS RELEASE – January 7, 2008

Product Enhancements Focus Of 2007 For TRADITION SOFTWARE

PRESS RELEASE

TRADITION SOFTWARE, the leading provider of lien software solutions to the US construction industry, announced its year end results, as the company reported small revenue growth, GAAP Net Income and EBITDA in 2007.

“2007 was a tough year for our construction related customers and prospects due to the national slowdown in homebuilding fueled by the well publicized mortgage crisis,” said Craig Altman, Founder/President of TRADITION SOFTWARE, INC. “After a record year of sales in 2006, our new software license sales were down 15%. Part of this decrease was due to a business decision made to end all reseller agreements in order to focus our resources exclusively on direct sales channel. Some positive sales news included the addition of nine customers who previously used a competitive lien software product. Additionally, the growing online sales channel now has one hundred sixty (160) products, including Notices By State, Pettit and Walz forms, and PreLien2Lien software licenses available for purchase at the TraditionSoftware.com website. Finally, there was a small 2.3% increase in Annual Subscription license revenue. We did a good job of keeping our current customers despite the tough year in the construction market.”

The TraditionInk.com division experienced a strong 55% revenue growth in 2007. “Our updated website that was launched initially in late 2006 was very positively received by our customers,” said Craig Altman. The website now has over nine hundred (900) products available for purchase, with another 2,000 products planed to be added in 2008. Improved distribution agreements have resulted in our customers enjoying free 1-day delivery with no minimum purchase on 75% of the orders placed. Additionally, our aggressive $5 next day delivery guarantee for any size order has made it easy for customers to limit the costs traditionally realized by purchasing from an online retailer.”

The company continued to reduce its long term debt with a 39% reduction on a note payable to the former corporate owner of PreLien2Lien. “We are now only 1.5 years away from totally being long term debt free,” said Craig Altman. The majority of the short term debt that increased in 2007 was to finance tenant improvements to its new Roseville, CA headquarters. Additional short term debt was added to finance several of the company’s technical initiatives, including switching to its own dedicated web server in lieu of shared web hosting.

Miriam Liskin’s first full year as Software Development Manager resulted in over forty (40) improvements made to PreLien2Lien in 2007. This included Custom Template Technology (CTT) in fifteen states, an AutoUpdater (AU) feature with three user options for software updates and a new web-based Help menu software solution. “There is now a clear technical advantage at a lower cost with better customer support to using PreLien2Lien over other competitive software products,” said Craig Altman. A new product, PreLien2Lien-LS (Lien Service), was also introduced in Q4, with RAPID COLLECTION SYSTEMS, INC. of Phoenix, AZ the first customer to sign an Annual Subscription contract to use the new product. “We think that the CTT technology will really help sales in 2008, as new customers can purchase PreLien2Lien to use its productivity benefits while printing notices that incorporate their own legal language produced with CTT technology. Additionally, with forty lien services using PreLien2Lien across the country, we now have a low cost solution that enables their customers to enter project information online for direct import into PreLien2Lien.”

TRADITION SOFTWARE plans on increasing its national marketing in 2008 with booths at two national industry trade shows. The company will be exhibiting at the World Of Concrete conference January 22-25 in Las Vegas, NV. Another conference the company will be exhibiting at is NECA 2008 in Chicago, IL October 2-5. Two more conferences the company plans on exhibiting at will be announced at a later date. Additional marketing for TraditionInk.com will include scheduled Q2 billboard advertising in selected cities and youth league sponsorships in Northern California.

About TRADITION SOFTWARE
TRADITION SOFTWARE, INC. was founded in 2005 by its Founder and President, Craig Altman. TRADITION SOFTWARE offers the industry standard software solution, PreLien2Lien, to contractors and subcontractors in the US construction industry for lien management. TraditionInk.com was formed in 2005 as a new Division, offering businesses and consumers name brand and compatible replacement ink supplies at 10% – 60% less than traditional office supply retailers.

TRADITION SOFTWARE’s headquarters is in Roseville, CA, just north of the state capital in Sacramento. The company’s mission is to offer superior products with friendly, knowledgeable technical support. We don’t do this because it easy. Our employees do it because it benefits our customers.

Experience the Tradition.