Park City Group Announces Second Quarter 2008 Financial Results

Business Wire, Feb 15, 2008

PARK CITY, Utah -- Park City Group, Inc. (OTCBB: PCYG) today announced its financial results for the second quarter ending December 31, 2007. For the second quarter of fiscal 2008, the Company reported a net loss of $1,361,069 on revenues of $494,497 compared to a net loss of $737,157 on revenues of $560,687 during the same period of fiscal 2007. For the six months ended December 31, 2007, the company reported a net loss of $2,015,793 on revenues of $1,348,761 compared to a net loss of $1,281,221 on revenues of $1,146,582 for the same period of fiscal 2007.

The decline in revenues during the quarter was due in large part to the effects of a merger involving one of Park City Group's customers. This customer, which had notably expanded the number of categories it had engaged Park City Group in its Supply Chain Profit Link (SCPL) program, was acquired by a larger chain. This event has temporarily delayed the implementation of the engagement.

The net operating results for the quarter were further impacted by $371,229 of costs associated with a reduction in capitalized costs in fiscal 2008 and its amortization, an increase of a bad debt reserve, legal fees associated with ongoing patent litigation, and personnel costs as a result of the Company's expansion of its sales, development, and business analytics workforce both domestically and in India.

In spite of the increase in reported expenses, the Company notes that its cash burn rate has decreased by 12% or $245,850 for the six months ended December 31, 2007 compared to the same period in 2006.

Commenting on the quarter's results, Park City Group's Chairman and CEO, Randall K. Fields said, "Our fiscal second quarter is typically a seasonally weaker quarter due to the holiday season. Most retailers are focused on holiday sales and the key decision makers tend to delay any new initiatives. Despite this, the business environment and reception for our services continues to be vibrant as retailers and suppliers face economic and competitive challenges. We believe we will capitalize on these opportunities and increase shareholder value for our investors."

"Our strategy is to aggressively target the top tier of the retail supermarket sector and its suppliers. These are some of the largest and most recognizable names in business. We are pursuing final agreements with many of these companies. As a result, we are confident that the year as a whole will compare favorably to last year."

The Company will conduct a conference call today, February 15 at 9:00 a.m. ET to discuss the results. The conference call may be accessed by dialing, 866-831-6291 and entering access code 59200523. The call may also be accessed via the Internet at: http://phx.corporate-ir.net/playerlink.zhtml?c=105552&s=wm&e=1766247.

For those unable to access the live event, the conference call will be archived after its completion and will remain available through March 1 by dialing 888-286-8010 and entering access code 57418202.

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. To find out more about Park City Group (OTCBB: PCYG) 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. 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-KSB for the year ended June 30, 2007 filed with the Securities and Exchange Commission. This release is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this release out of context. Park City Group uses 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.