Victoria, BC, August 30, 2007 - Municipal Software (TSX-V:MSZ) announced today several new clients for its Local Government Manager™ solution.

New jurisdictions that joined the Local Government Manager community this month include the cities of Town & Country and Foristell in Missouri, the Town of Suffield in Connecticut, Owyhee County in Idaho, the Town of Winter Park in Colorado and the City of Medina in Ohio. When asked why she selected Local Government Manager™, Diana Kaufman of the City of Town & Country said, “it is the easiest program I have ever used and the reports are really helpful and easy to read.”

Local Government Manager™ is a hosted solution that was developed by Municipal Software for municipalities that require a low-maintenance, highly configurable, ready-to-use solution. There are three fully integrated modules available with Local Government Manager™ including permits & inspections, planning and code enforcement.

“With these new subscribers to Local Government Manager we are starting to see a pattern of adoption in key locations across the country”, said Iain McLean, CEO and President of Municipal Software. “These growing jurisdictions need to maximize their operating budgets and support their staff with managing the increased demands placed on them. We are looking forward to helping them build stronger relationships in their communities”.

As a hosted software solution, Local Government Manager™ is easy to implement as resources do not have to be dedicated to installation and maintenance, no capital investment is required and users can be up and running in weeks. Local Government Manager™ uses the world-class Apex™ platform developed by SalesForce.com to provide its clients with a highly secure and reliable on-demand service.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

About Municipal Software Corporation
Municipal Software Corporation (TSX-V:MSZ) provides easily installed, packaged software solutions that manage the everyday business processes of local governments. The solutions are based on 25 years of experience with product applications that easily adapts to the changing practices of clients. We have solutions for both large and small municipalities, from our on-premise software called CityView to our ready-to-use web-based Local Government Manager. Local Government Manager was launched for municipalities that require a low-maintenance, configurable, ready-to-use solution. The software-as-a-service platform used by Local Government Manager delivers a secure and reliable online service for business process management, including Permits & Inspections, Code Enforcement and Planning.

For further information about Municipal Software and Local Government Manager, please contact Iain McLean, CEO, at 1-800-665-5647 ext 243 or via email at Media@MunicipalSoftware.com.