CADA Cam Commerce Solutions (MM)

CAM Provides First Quarter X-Charge Update FOUNTAIN VALLEY, Calif., Jan. 5 /PRNewswire-FirstCall/ -- CAM Commerce Solutions, Inc. (NASDAQ:CADA) today provided the following management update on its X-Charge payment processing division from its CEO, Geoff Knapp. We have been providing information the past few quarters on new application worksheets received by customers intending to implement our X-Charge payment processing solution. These new commitments and the estimated dollar volume associated with them have been the best leading indicator of the momentum of the business that we were able to track. During the early part of this past quarter, we implemented a new software system that we created internally over the past year to track the application process from customer commitment all the way through to installation and also as an on-going live processing account. This software is exceptional in the timely information it provides us to properly manage and grow our X-Charge business. It has allowed us to get a clear picture of many important statistics related to the application process and customer life cycle that were not available to us previously. Over this past quarter we have been able to refine our processes and interpret the historical data to give us the ability to focus our efforts to improve our results. For example, in the past we had to estimate the percentage of customers who committed to implement X-Charge and actually went live, or the percentage of customers who stop processing with us for various reasons. The initial commitment we receive from a customer is still an important leading indicator but we can now say that based on historical data from the past year that approximately 70% to 80% of those accounts will eventually become live processing accounts. We think that percentage can and should be higher and as a result of the new data available to us, we have identified some key reasons why a percentage of deals may not have made it all the way through the process in the past. We are focused on improving our process in these areas and increasing the percentage of application worksheets that become live processing accounts. It is important to stress that prior to the implementation of our new internal system there was no simple way to obtain this data. The other key statistic that we have identified is that the number of accounts that stop processing with us each year appears to be in the 10% to 12% range. From an industry perspective this is excellent at half the industry average, but also a figure we hope to reduce now that we have identified some of the reasons for part of this that may be in our control. Reasons such as customers go out of business, sell their businesses and change processors are out of our control. With our turnover rate being half the industry average or less, we still feel very good about the very high quality of our processing portfolio, which is directly related to the integration that X-Charge provides with the retailers business system. In the quarter ended December 31, 2004 we received a record 860 application worksheets, representing an estimated $286 million in potential processing. This compares to 380 application worksheets for $109 million in the same period in 2003. The increase is mostly attributable to the growth in our reseller channel. We expect that 70% or more of these accounts will become live processing customers. Our current credit card processing portfolio has recently grown to over $1 billion a year in processing, generating approximately $5 million a year in gross processing revenue on an on-going basis. In summary, we are very positive about the X-Charge business. The reseller channel should continue to grow and we will continue to get better at the process of moving new X-Charge accounts through the application and installation cycle. The business should continue to grow in a meaningful way for the foreseeable future. About CAM Commerce Solutions CAM Commerce Solutions, Inc. provides total commerce solutions for traditional and web retailers that are based on the Company's open architecture software products for inventory management, point of sale, sales transaction processing, accounting, and payment processing. These solutions often include hardware, installation, training, service, and payment processing services provided by the Company. You can visit CAM Commerce Solutions at http://www.camcommerce.com/. Important Information The statements made in this news release, including those relating to the expectations of profitability and economic climates, are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. Words such as "will," "should," "believe," "expect," "anticipate," "outlook," "forecast," "optimistic," "feel," "potential," "continue," "intends," "goal," "plans," "estimates," "may," "seeks," "would," "future," "bright," "projected," and other similar expressions that predict or indicate future events or trends, or that are not statements of historical matters, identify forward-looking statements. Expectations concerning financial results for future quarters are not actual results and are based upon preliminary estimates, as well as certain assumptions management believes to be reasonable at this time. Investors should not rely upon forward looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from our expectations, and the company expressly does not undertake any duty to update forward-looking statements which speak only as of the date of this news release. The performance of any one month or quarter may not be indicative of future performance, particularly given prevailing market and economic uncertainties. In addition to the factors set forth elsewhere in this release, the economic, competitive, technological, and other factors identified in CAM Commerce Solutions' filings with the Securities and Exchange Commission could affect the forward looking statements contained in this news release. DATASOURCE: CAM Commerce Solutions CONTACT: Mathew Hayden of Hayden Communications, Inc., +1-858-456-4533, for CAM Commerce Solutions Web site: http://www.camcommerce.com/

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