CaminoSoft Reports Fiscal 2005 Results

Strong Demand for Managed Server Products in Microsoft Windows and Novell NetWare Operating Environments Supports Sales Growth


WESTLAKE VILLAGE, Calif., Jan. 3, 2006 (PRIMEZONE) -- CaminoSoft Corp. (OTCBB:CMSF) today announced strong sales for its fiscal fourth quarter and record sales for the year ended September 30, 2005, reflecting the benefits of a multi-year strategic turnaround plan and a focus on leveraging licensing and OEM partnerships.

Net sales for the fiscal fourth quarter jumped 74.3 percent to $584,834 from $335,562 a year earlier. For the same period, the company reported a net loss of $243,655, or $0.02 per share, compared with a net loss of $0.04 per share a year ago.

Net sales for the fiscal year doubled to $2.6 million from $1.3 million in fiscal 2004. The company reported a significantly reduced net loss for fiscal 2005 of $770,409, or $0.06 per share, compared with a net loss of $2.1 million, or $0.17 per share, a year earlier.

"Results for the year reflect strong sales increases of the company's Managed Server HSM software products -- underscoring steadily growing industry demand for storage capacity and a corresponding requirement to economically and effectively manage data," said Stephen W. Crosson, chief financial officer and chief operating officer.

Crosson noted that the company's multi-year strategic product development and turnaround plan has focused on completing certification of its HSM software products for such licensing and OEM partners as EMC, IBM and Computer Associates. Deferred revenue, including prepaid royalties, climbed to approximately $1.3 million from $250,000, with approximately 59 percent derived from a private-label product for Computer Associates. "Increasing revenues by utilizing the sales and marketing infrastructure of the company's OEM and channel partners, rather than a direct sales approach, is one of the key components of the company's growth strategy. With a software technology base that is storage hardware-agnostic and a total market projected to exceed $70 billion for all storage segments in 2006 according to industry analysts, CaminoSoft is well-positioned to further leverage its alliances with industry-leading technology and global channel partners," Crosson said.

About CaminoSoft

CaminoSoft Corporation is a developer and manufacturer of software solutions that address the storage, management, and safeguarding of vast quantities of data generated in a wide range of businesses and applications. The company's Information Lifecycle Management solutions for Microsoft Windows(tm) 2000/2003 and Novell NetWare(tm) & GroupWise environments include comprehensive administrative policies that allow organizations to reclaim storage resources, dramatically reduce backup and recovery time, control file retention, and achieve regulatory compliance. CaminoSoft has established alliances with industry-leading technology partners, and the company markets its Storage Management and High Availability solutions worldwide through commercial distributors, value-added resellers, and systems integrators. For further information, visit www.caminosoft.com.

This release may contain forward-looking statements that reflect the management's current views of future events and operations. These forward-looking statements are based on assumptions and external factors, including assumptions relating to regulatory action, capital requirements and competing products. Any changes in such assumptions or external factors could produce significantly different results.



                                  CaminoSoft Corp.
                         Consolidated Statements of Operations

                            For the                   For the
                       Three Months Ended            Year Ended
                          September 30,             September 30,
                           (Unaudited)                (Audited)
                        2005         2004         2005         2004
                        ----         ----         ----         ----


 Net Sales         $   584,834  $   335,562  $ 2,637,201  $ 1,253,610

 Cost of Sales          71,586       40,443      213,423      247,515
                   -----------  -----------  -----------  -----------

 Gross Profit          513,248      295,119    2,423,778    1,006,095

 Operating Expenses

  Sales and
   administrative      547,696      694,746    2,438,708    2,655,657
  Depreciation and
   amortization          5,052        4,128       18,948        9,744
  Research &
   Development         109,840       81,420      473,830      284,410
                   -----------  -----------  -----------  -----------

 Total Operating
  Expenses             662,588      780,294    2,931,486    2,949,811
                                             -----------  -----------

 Loss from
  Operations          (149,340)    (485,175)    (507,708)  (1,943,716)
                   -----------  -----------  -----------  -----------
                   
 Other Income &
  Expenses

  Interest expenses    (94,319)     (77,503)    (262,717)    (200,380)
  Interest income            4            1           16           21
                   -----------  -----------  -----------  -----------

 Total Other Income
  (Expense)            (94,315)     (77,502)    (262,701)    (200,359)
                   -----------  -----------  -----------  -----------


 Net Loss          ($  243,655) ($  562,677) ($  770,409) ($2,144,075)
                   ===========  ===========  ===========  ===========

  Net loss per
   share (basic and
   diluted):       ($     0.02) ($     0.04) ($     0.06) ($     0.17)
                   ===========  ===========  ===========  ===========

  Weighted average
   common shares
   Outstanding
   (basic and
   diluted):        13,551,082   13,462,750   13,506,795   12,390,202
                   ===========  ===========  ===========  ===========


            

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