VICTORIA, BRITISH COLUMBIA -- (MARKET WIRE) -- 10/19/2006 -- Municipal Software (TSX VENTURE: MSZ) announced today that Diamond Bar, CA has purchased the entire suite of CityView PreBuilt™ software including Property Information, Permits & Inspections, Planning, Code Enforcement, Licensing and Cashiering. Diamond Bar becomes the ninth client in California for the company.

Following an extensive due diligence process, the City of Diamond Bar chose the CityView System to automate its Development Services, Engineering/Public Works, Building and Safety, Neighborhood Services and Finance Departments, not only because it provided the best value for the money and was able to meet the vast majority of the City's requirements right out the box, but also because Municipal Software's references confirmed that the company delivers on its promises.

According to Diamond Bar, City Manager, James DeStefano, "The CityView system will streamline our business process by creating a multi-department, centralized digital record of all property based transactions, giving us access to a complete property profile instantly." Ken Desforges, Director of Information Systems for the City added, "CityView will make City Hall available to residents at their convenience, 24/7 with project status information and inspection requests available online."

Iain McLean, CEO of Municipal Software said, "With the help of the CityView PreBuilts, information will be available throughout the organization using a single database. CityView provides a solution to shorten the application processing timeline, increase accuracy and will allow Diamond Bar to provide the best possible customer service to its residents."

The City of Diamond Bar has a population of 59,000.

About The City of Diamond Bar

The City of Diamond Bar is within Los Angeles County, California, and is conveniently located adjacent to three major Southern California Market areas; Orange, Riverside and San Bernardino counties. While the land use is primarily residential or recreational, Diamond Bar maintains an attractive balance between country living and a progressive approach to promoting and assisting business enterprises.

About Municipal Software Corporation

Municipal Software Corporation (TSX VENTURE: MSZ) provides easily installed, packaged software solutions that manage the everyday business processes of local governments. The solutions are based on 24 years of experience with a product platform that easily adapts to the changing practices of clients. Branded under the CityView name, the company provides a number of out of the box solutions automating practices in Property Information, Permits and Inspections, Planning, Code Enforcement, Licensing and Cashiering. CityView Application Builder is a set of application development tools that allows the client to develop unique applications to match specific needs. Municipal Software offers a complete range of services from training and customer support of its suite of products to custom development for unique applications.

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