CloudBench Applications Announces Results for Second Quarter 2008

In the second quarter of 2008, CloudBench continued to realize the benefits of its restructurings in 2007 and posted its second smallest quarterly loss and loss per share in the last eight quarters.

The Company's operating expenses for the three months ended June 30, 2008 were $1,248,300, a decrease of $728,901 or 37% over the three months ended June 30, 2007. The decrease was mainly the result of reductions in non-revenue generating staff as a result of restructurings that occurred in 2007.

Total revenue for the three months ended June 30, 2008 was $1,086,849 as compared to $1,258,758 in the three months ended June 30, 2007, a decrease of 14%. The decrease in the second quarter was predominantly related to Services and Software License revenue and was offset by an increase in Other Revenue related to the Company's new Software as a Service ("SaaS") product, Local Government Manager.

In the second quarter of 2008, Other Costs totaled $130,656, a decrease of $13,196 over the second quarter in 2007. The decrease related largely to a decrease in the foreign exchange loss, which changed from a loss of $47,569 in the second quarter of 2007 to a loss of $23,976 in the current quarter. As well, amortization expense was lower by $21,837 quarter over quarter. These decreases were offset by an increase in interest expense and accreted interest expense.

The net loss for the quarter was $292,107 or $(0.02)/share compared to a loss for the prior quarter of $862,295 or $(0.05)/share.

The Company's overall backlog (defined as the amount of services and license revenue contracted for but not yet recognized as revenue) exceeded US$4.5M at June 30, 2008.

These results reflect the business of CloudBench prior to the sale of substantially all of the assets of the Company on July 18, 2008 to N. Harris Computer Corporation. The sale excluded those assets which constitute the Company's Software as a Service offering to municipalities called Local Government Manager.

David Roberts, President and Chief Executive Officer of CloudBench Applications, commented, "These financial results principally describe the Company's On Premise business which was sold in July 2008. CloudBench is now solely focused on Local Government Manager. We believe that an increasing number of cities will prefer the rapid deployment and low cost of SaaS over traditional On Premise software."

The following is the Consolidated Statements of Operations, Comprehensive Loss and Deficit (unaudited) for the three months ended June 30, 2008 and June 30, 2007. A complete set of financial statements and analysis is available at www.sedar.com.

CLOUDBENCH APPLICATIONS, INC.
Consolidated Statements of Operations, Comprehensive Loss and Deficit 
(unaudited)

--------------------------------------------------------------------------
                           Three months ended           Six months ended
                         June 30       June 30       June 30       June 30
                            2008          2007          2008          2007
--------------------------------------------------------------------------

Revenue             $  1,086,849  $  1,258,758  $  2,257,365  $  2,397,735
Expenses:
 Customer service        409,285       480,355       802,791       911,742
 Sales and marketing     124,568       223,235       291,881       492,291
 Research and
  development            345,515       529,664       689,406     1,070,495
 General and
  administrative         368,932       426,873       724,283       804,323
 Restructuring costs           -       317,074             -       317,074
--------------------------------------------------------------------------
                       1,248,300     1,977,201     2,508,361     3,595,925
--------------------------------------------------------------------------
Loss before
 the following          (161,451)     (718,443)     (250,996)   (1,198,190)

 Amortization             44,084        65,921        83,557       130,833
 Interest                 47,242        30,362        96,655        53,261 
 Loss (gain) on
  foreign exchange        23,976        47,569       (25,098)      105,591
 Accreted interest        15,354             -        20,305             -
--------------------------------------------------------------------------
Net loss and
 comprehensive loss
 for the period         (292,107)     (862,295)     (426,415)   (1,487,875)

Deficit, beginning
 of period           (10,007,981)   (7,783,551)   (9,873,673)   (7,157,971)

--------------------------------------------------------------------------
Deficit, end
 of period          $(10,300,088) $ (8,645,846) $(10,300,088) $ (8,645,846)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Loss per share:
 Basic and diluted  $      (0.02) $      (0.05) $      (0.02) $      (0.09)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Weighted average
 number of shares
 outstanding:
 Basic and diluted    18,584,646    16,045,823    18,584,646    16,045,823

About CloudBench Applications, Inc.

CloudBench Applications, Inc. provides a web-based solution, called Local Government Manager, to meet the needs of local governments who wish to employ the growing SaaS (software as a service) software model, rather than an On Premises solution. Local Government Manager offers new levels of security, flexibility and efficiency for the permitting and inspections, code enforcement and planning needs of local governments.

Forward-Looking Statements

Certain statements in this news release are not historical and may constitute forward-looking statements reflecting CloudBench Applications, Inc.'s current expectation in the local government sector. These statements are subject to important risks, uncertainties and assumptions concerning future conditions that may ultimately prove to be inaccurate and may differ materially from actual events or results.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release. Email: droberts@cloudbench.com