BasicGov Systems, Inc. Reports Q1 2010 Results and Business Highlights

  BasicGov Systems, Inc. (TSX VENTURE: BSG) ("BasicGov" or the "Company") today announced its financial results for the three months ended March 31, 2010. All amounts are stated in Canadian dollars unless otherwise noted.

Revenues from BasicGov, the Company's cloud computing solution for government, grew to $59,025 in 2010, a 62% increase from $36,402 in 2009. The Company's annualized committed recurring revenues, a non-GAAP measure, are currently US$300,000.

"Our revenues continued to grow as cost conscious governments switched from expensive, on-premise software to affordable cloud computing solutions like BasicGov. Through partnerships with Salesforce.com and Carahsoft Technology Corp., we can now offer BasicGov to larger cities, states and government agencies in addition to our current customer base of smaller cities and counties," said David Roberts, President and Chief Executive Officer of BasicGov. "By partnering with Salesforce.com we're generating more sales leads while their Force.com platform ensures that BasicGov is scalable, reliable and secure. And, through our partnership with Carahsoft, we're marketing BasicGov to federal, state, and government agencies through Carahsoft's General Services Administration (GSA) schedule."

At March 31, 2010 the Company's cash position was $469,895.

Operating costs grew to $336,926 in the first quarter of 2010 compared to $245,349 in the first quarter of 2009 as a result of expanding our sales and marketing efforts ($70,781), building our implementation team ($20,783) and investing in product development ($40,365) while reducing our general and administrative costs ($45,795). This resulted in a net loss for the first quarter of 2010 of $324,924 or $(.02)/share compared to a net loss in the first quarter of 2009 of $199,723 or $(.01)/share.

A complete set of financial statements and analysis is available at www.sedar.com.

About BasicGov Systems, Inc.

BasicGov Systems, Inc. ("BasicGov") (formerly CloudBench Applications Inc.) (TSX VENTURE: BSG) develops, sells and supports web-based software for cities, counties, state governments and government agencies to streamline planning, permitting and inspections, code enforcement, licensing and citizen access. BasicGov is a reliable, secure solution delivered for an affordable price and the only web-based software for local governments built on the Salesforce.com's Force.com platform, the backbone of cloud computing solutions used by more than 70,000 organizations worldwide. Unlike enterprise software that is expensive to acquire and difficult to implement, BasicGov does not require capital investment and is easy to set up. www.basicgov.com.

Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in market and competition, technological and competitive developments, cooperation and performance of strategic partners, potential downturns in economic conditions generally and the outcome of the negotiations with Harris as to the amount of the Holdbacks. Forward-looking statements are based upon management's estimates, beliefs and opinions. The Company assumes no obligation to update forward-looking statements, other than as required by applicable law.

Contacts

For more information about BasicGov Systems, Inc. and BasicGov visit www.basicgov.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: BasicGov Systems, Inc. Ian Power CFO [phone] [e-mail] www.basicgov.com