New Mexico Software 2008 Revenue Up 66% to $1.64M

Business Wire, April 15, 2009

Q4 2008 Revenue Up 174% on Rapidly Growing Radiological Services

ALBUQUERQUE, N.M. -- New Mexico Software, Inc. (OTCBB:NMXC), a leading provider of next-generation business and medical services, announced today that annual revenue in 2008 increased 66% to $1.6 million from $988,000 in 2007. The increase was driven by the company’s new radiological services from its wholly-owned subsidiary, Telerad Service (TRS). Revenue for the fourth quarter of 2008 grew 174% to $679,000 from $248,000 in the fourth quarter of 2007. The company’s 2008 net loss decreased 34% from $739,000 in 2007 to $485,000.

2008 financial highlights included:

• Revenue increased 66% to $1.64 million
• Since June 2008, Radiological Services (TRS) generated $864,000 in revenue
• Software usage revenue increased 15% to $457,000
• G & A expenses decreased 25% to $811,000
• Net operating loss decreased 36% from $748,000 in 2007 to $479,000 in 2008
• Net loss decreased 34% to $485,000

New Mexico Software CEO Dick Govatski said, “2008 was our best year ever. This was our third consecutive year of positive revenue growth and it appears we will continue this trend into the first quarter of 2009 with revenue substantially above the fourth quarter. We anticipate overall revenue growth for the full year 2009.”

"Our TRS subsidiary, which started operations in May 2008, contributed 53% to our 2008 revenue. TRS provides radiological services to hospitals, mobile and portable x-ray providers, prisons, urgent care facilities and assisted living facilities. We currently have 23 doctors on contract, licensed in 48 states, and provide high-quality reports to customers in 34 states with exceptional turn-around times.”

Govatski added, “Because of the potential opportunities in telemedicine, as part of the health care reform in the U.S., we intend to continue to take advantage of the growth in the teleradiology market during the next few years. Our primary goal for 2009 is to become profitable by the end of the year.”

About New Mexico Software, Inc.

New Mexico Software, Inc. develops and provides medical IT services and solutions that enable improved and faster communication within the preventative, comprehensive and critical healthcare segments. New Mexico Software also provides software and hardware that streamlines administrative processes for a more efficient working environment. Telerad Service is a wholly owned subsidiary of New Mexico Software whose primary focus is to deliver interpretive radiological cases studies for medical facilities. For more information, visit http://www.nmxc.net or http://www.nmxs.com, or contact Dick Govatski, president and CEO, at 505-255-1999 or ceo@nmxs.com.

An investment profile on New Mexico Software may be found at http://www.hawkassociates.com/profile/nmxc.cfm. For an online investor relations kit, visit http://www.hawkassociates.com or http://www.americanmicrocaps.com. For more investor-related questions, contact Frank Hawkins or Susan Zhou, Hawk Associates, at 305-451-1888 or New.Mexico.Software@hawkassociates.com. To subscribe to future releases via e-mail alert, visit http://www.hawkassociates.com/about/alert/.

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company’s financing plans; (ii) trends affecting the company’s financial condition or results of operations; (iii) the company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors including the risk disclosed in the company’s Forms 10-K and 10-Q filed with the SEC.