BasicGov Systems, Inc. Reports for the Year Ended December 31, 2009 and Business Highlights

  BasicGov Systems, Inc. (TSX VENTURE: BSG) ("BasicGov" or the "Company") today announced its financial results for the year ended December 31, 2009. All amounts are stated in Canadian dollars unless otherwise noted.

Revenues from BasicGov, the Company's cloud computing solution for local government, grew to $236,985 in 2009, a 127% increase from $104,905 in 2008. The Company's annualized committed recurring revenues, a non-GAAP measure, increased 140% to US$300,000 compared to US$124,000 for the same period last year.

"Our revenues grew significantly as local governments switched from traditional, on-premise software to our BasicGov cloud computing modules. To accelerate revenue recognition we streamlined our implementation process so new customers go live quickly," said David Roberts, President and Chief Executive Officer of BasicGov. "We think we're in a great position to grow. Our partnership with Salesforce.com and the Force.com cloud computing platform ensures that BasicGov is scalable, reliable and secure;. Our recently launched Citizen Portal opens BasicGov to citizen access. Last quarter we added an experienced Vice President of Marketing and Sales and received additional equity financing. We believe we can make BasicGov the natural choice for costconscious cities and counties across North America."

At December 31, 2009 the total value of the Company's cash position and net holdback receivable was $636,081. Of this amount $275,334 was cash and $360,747 was net holdback receivable related to the sale of the Company's CityView business to N. Harris Computer Corporation in 2008. The net holdback receivable was received subsequent to December 31, 2009.

A comparison of operating results to the prior period is not meaningful since the Company sold CityView, its on-premises business, on July 18, 2008. Net loss for the year was $1,416,643 or ($0.07)/share compared to net income of $4,355,912 $023/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: BCG) develops, sells and supports web-based software for cities, counties, state governments and government agencies to streamline permitting and inspections, code enforcement, planning, 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 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.

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.

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