Propalms, Inc. Extends Contract With Fenwick to Provide Additional TSE Licenses

Market Wire, August, 2007

Propalms, Inc. (PINKSHEETS: PRPM) is pleased to announce that the Company has had its contract extended with Fenwick, a high street retail store. Fenwick has increased its commitment to Propalms by acquiring additional user licenses for the TSE software.

Fenwick was founded in 1882 with its first store in Newcastle, and is one of the best known high street retailers and department store groups in the UK. Fenwick currently operates a number of stores in York, Windsor, Tunbridge Wells, Canterbury and Brent Cross. Fenwick has recently acquired Bentalls, a family owned store chain based in Kingston Upon Thames, Surrey.

The Propalms TSE software was supplied by Apex, an accredited IBM Premier Business Partner and is installed on IBM's X-series server. Apex is also a Cisco Premier Business Partner and a Microsoft Gold Business Partner.

"Fenwick has a reputation for quality and we are proud to have them as a customer of Propalms. We believe the extension is a statement to the quality of Propalms products and to the Company as a whole," stated Owen Dukes, CEO of Propalms, Inc.

About Propalms, Inc.:

Propalms TSE, the complete Server-Based Management solution that extends Microsoft Terminal Services 2000/2003, offers features such as Application Publishing, Seamless Windows, Resource-based Load balancing, and Web-based consoles.

Statements contained in this news release, other than those identifying historical facts, constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company's future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbors protection. Actual Company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such "forward-looking statements." The Company disclaims any obligation to update or revise any forward-looking statements.

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Contact: For more information, please visit: http://www.propalms.com or Call Investor Relations + 1-866-THE-APPL(E)