BasicGov Systems, Inc. Reports Q2 2010 Results and Business Highlights

   BasicGov Systems, Inc. (TSX VENTURE: BSG) ("BasicGov" or the "Company") today announced its financial results for the three months and six months ended June 30, 2010. All amounts are stated in Canadian dollars unless otherwise noted.

Revenues from BasicGov, the Company's cloud computing solution for government, were $68,668 in the second quarter 2010 compared to $69,889 in 2009 the slight decline is due to a strengthening of the Canadian dollar relative to the United States. The Company's annualized committed recurring revenues, a non-GAAP measure, are currently US$300,000.

"Our revenues have remained flat over the last year as BasicGov has shifted its focus to larger cities, states and government agencies which have a significantly longer sales and implementation cycle. 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 local government agencies through Carahsoft's General Services Administration (GSA) schedule."

At June 30, 2010, 2010 the Company's cash position was $95,601. In addition, subsequent to June 30, 2010, the Company established a line of credit with Pender Growth Fund (VCC) Inc. in the amount of $250,000. The first draw of $100,000 was made on August 5, 2010.

Operating costs grew to $282,234 in the second quarter of 2010 compared to $270,911 in the second quarter of 2009. This increase was a result of expanding our sales and marketing efforts and product development that began in the third quarter of 2009 that was only partially offset by reductions in the cost of customer implementation. The net loss for the second quarter of 2010 was $243,164 or $(.01)/share compared to a net loss in the second quarter of 2009 of $183,868 or $(.01)/share.

Operating costs grew to $619,160 in the first half of 2010 compared to $516,258 in the first half of 2009. This increase was a result of higher sales, marketing and product development costs that were only partially offset by lower general and administrative costs in the second quarter of 2010 and reductions in the cost of customer implementation. This net loss for the first half of 2010 was $568,087 or $(.03)/share compared to a net loss in the first half of 2009 of $383,590 or $(.02)/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, and potential downturns in economic conditions generally. 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.

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