MYSOFTWARE ANNOUCES RECORD FOURTH QUARTER AND RECORD YEAR-END REVENUES
Gross revenue up 50% over Q4 1997, Gross profit Up 114% over Q4 1997

PALO ALTO, CA – February 25, 1998 – MySoftware (Nasdaq: MYSW), a leader in providing direct marketing software and Internet services for small businesses, today announced results for the three-month and twelve-month periods ended December 31, 1998. The Company reports record setting revenue levels, as well as sizable increases in profits and cash flow, for both periods.

For the three months ended December 31, 1998, MySoftware's revenues increased 50 percent to $4.7 million from $3.1 million in the same quarter last year, a 25 percent increase over the third quarter of 1998 revenue.  The increase in revenues was due primarily to continued success in Original Equipment Manufacturers (OEM) channels, direct sales/annuity services channels, and retail channels.  For the fourth quarter, MySoftware reported net income of $365,000, or $.08 per share, compared to a net loss of $1.6 million, or $.38 per share, a year ago. 

For the twelve months ended December 31, 1998, revenues increased 22 percent to $15.0 million from $12.4 million for the same period a year earlier.  The Company reported net income for the twelve months of 1998 of $479,000, or $.10 cents per share, compared to a net loss of $4.0 million, or $.95 per share, in the same period a year ago.  The results for 1997 included a restructuring charge of $193,000.

The Company experienced net positive cash flow for the quarter as well as the year ended December 31, 1998. The Company had $5.4 million in cash and cash equivalents and working capital of $4.8 million, up from $5.0 million in cash and $3.7 million in working capital as of December 31, 1998. MySoftware has no debt.

"1998 was a successful year for our Company, and I am pleased with another record revenue quarter," said Gregory Slayton, President and CEO of MySoftware.  "At the beginning of the year, we promised shareholders that we would do three things in 1998: (1) cut the Company's overall expense rate by 20%, (2) return the Company to revenue growth and, (3) position the Company to take a leadership position in a related and rapidly growing segment.

"As a result of our new strategic focus, a great team effort and growing relationships with our world class partners, we are happy to report that:

1)	expenses as a percentage of revenue were down by 19% in 1998 compared to 1997,
2)	the Company experienced revenue growth in the second through fourth quarters of 1998 and,
3)	we successfully launched the world's first business and consumer e-prospecting service at www.MyProspects.com in December 1998."

Mr. Slayton concluded by adding, "1998 was a victory for our stockholders, our partners and the new MySoftware team. In 1999, we hope to see rapid expansion in the Internet and annuity services areas as MySoftware continues its transformation from being primarily a retail software company to being a complete direct marketing solution company via Internet, retail and other channels."

About MySoftware
MySoftware (Nasdaq: MYSW) is a leading provider of productivity software and Internet services for small and mid-sized businesses. By combining powerful software with effective, affordable Internet and annuity solutions, a small business can turn any personal computer into a direct marketing powerhouse. As the perfect complement to its retail software products, MySoftware's Internet services are dedicated to helping businesses find new customers (www.MyProspects.com) to grow their businesses. MySoftware actively works with some of the world's best-known companies to provide productivity solutions for their small and medium-sized business customers. More information on MySoftware and its alliances and products is available on the World Wide Web at www.MySoftware.com.

Forward Looking Statements
To the extent that any of the statements contained herein relating to the Company are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks.  Such uncertainties and risks include, but are not limited to, the development of new products and new selling channels, the enhancement of existing products, the dependence on principal customers, competitive pricing pressures, product volume and mix, timing of orders received, and the introduction of competitive products having technological and/or pricing advantages. As a result, the Company's operating results may fluctuate, especially when measured on a quarterly basis.  For further information, refer to the risk factors included in the Company's Annual Report 10-KSB for the year ended December 31, 1997 and the Company's Quarterly Report 10-QSB for the quarter ended September 30, 1998 as filed with the Securities and Exchange Commission.

MySoftware
Condensed Statement of Operations
For the Three and Nine Months Ended
December 31, 1998 and 1997
(in thousands except per share data)

MySoftware
Condensed Balance Sheets
December 31, 1998 and December 31, 1997
(audited, in thousands except per share data)