Park City Group Signs Multi-Million Dollar Software Licensing and Consulting Services Agreements

Business Wire, August 15, 2005

PARK CITY, Utah -- Park City Group, Inc. (OTCBB:PKCY) announced today that they have completed a three million dollar software licensing transaction with the Rosemount, MN based Cannon Solutions. Cannon Solutions, an IMI Company (LSE:IMI) is one of the premiere providers of point-of-purchase merchandising systems and programs for retailers industry-wide. Cannon Solutions as part of the collaboration of IMI, plc companies utilizes its Retail Science (TM) process to focus on sales strategies and programs that reinvent the delivery of value at the retail operations level.

"Our patented technologies and business operations consulting expertise fits well in the philosophy of Cannon Solutions and can enhance their offering," said Randy Fields, CEO and Chairman of Park City Group. "We will be working exclusively with Cannon Solutions in the merchandising and point of purchase aspects of retail operations. Our agreement provides them with an opportunity to deliver more value in their products and services while it provides us with increased opportunities to offer our solutions to a broader spectrum of retailers. We are extremely pleased to work with an organization whose philosophy and approach is so very compatible with our own."

Cannon Solutions' methodology focuses on consumer behavior filtered through various points of data relating to brand, space and finance. They provide a total solution integrated in an environment driven by information and research to create merchandising programs that increase revenue, mitigate risk, maximize accountability and optimize space. They are well known and highly respected in the retail industry where they have broad industry penetration and their customer list includes many of the largest, as well as household recognizable names in retail.

The agreement between the companies will result in a significant increase in market opportunities for Park City Group beyond its traditional supermarket-grocery; gas/convenience and specialty retail focus, as Cannon Solutions introduces the integrated solution offering to their broader retail market.

In addition to the software licensing agreement, Park City Group's consulting services will provide approximately $500,000 in services to Cannon Solutions. This agreement, in addition to a number of recent consulting opportunities, has helped to solidify the strategic importance of consulting services to the Company as it goes forward.

"Throughout our discussions and negotiations, it became clear that Cannon Solutions could be more than just a new customer for our software. There is a synergy between our organizations and the more we collectively investigated the possibilities, the more evident it became that there was a significant joint business opportunity," said Fields. "This licensing agreement and strategic relationship with Cannon Solutions marks a new era for us. It will allow us to deliver the benefits of our retail operations expertise to a much greater and more diversified market."

About Cannon Solutions

Cannon Solutions is an IMI Plc company headquartered in Rosemount MN. IMI is a leading international business supplying high value-added products to major global customers in growing niche markets. The company operates in two main areas, fluid controls (pneumatics, severe service valves and indoor climate) and retail dispense (beverage dispense and merchandising systems). For more information, please visit our website at www.cannonsolutions.com.

About Park City Group

Park City Group, Inc. develops and markets patented computer software that helps its retail customers to increase their sales while reducing their inventory and labor costs: the two largest, controllable expenses in the retail industry. The technology has its genesis in the operations of Mrs. Fields Cookies, co-founded by Randy Fields, CEO of Park City Group, Inc. Industry leading customers such as The Home Depot, Victoria's Secret, The Limited, Anheuser Busch Entertainment and Tesco Lotus benefit from our software. Feel free to contact us (Media Contact Randy Fields) at 800-772-4556 or info@parkcitygroup.com. For more about Park City Group (OTCBB:PKCY) (Berlin: WKN# 925919), visit our website at www.parkcitygroup.com.

Statements in this press release that relate to Park City Group's future plans, objectives, expectations, performance, events and the like are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities

Exchange Act of 1934. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Those factors could include changes in economic conditions that may change demand for the Company's products and services and other factors discussed in the "forward-looking information" section and the "risk factor" section of the management's discussion and analysis included in the Company's report on Form 10-K for the year ended June 30, 2004 filed with the Securities and Exchange Commission. This release is comprised of interrelated information that must be interpreted in the context of all information provided and care should be exercised not to consider portions of this release out of context. Park City Group uses the paid services of investor relations organizations to promote the Company to the investment community. Investments in any company should be considered speculative and prior to acquisition, should be thoroughly researched. Park City Group does not intend to update these forward-looking statements prior to announcement of quarterly or annual results.