MIAMI, July 10, 2006– New Generation Computing Inc. (NGC), a wholly owned subsidiary of American Software Inc. (NASDAQ: AMSWA), announced today the expansion of our operations to include locations in China that will provide local support for our USA customers and their supply chain partners. Our Chinese representatives will provide professional services, development, and sales support. Local support facilities will be located in Shenzhen (adjacent to Hong Kong), Shanghai, and Xian. The Chinese staff is currently being trained and certified in the USA and will be available to NGC customers for support in the very near future. NGC has a wide range of products for the sewn products industry (apparel, footwear, retail, home furnishing, and furniture) and these industries are increasingly using Asian factories for production. As a result, the NGC suite of Global Sourcing Solutions is in use in many factories and USA buying offices in China, Hong Kong, and other Asian countries. These support offices will provide training, implementation services, and consulting to USA brands and to their supply chain partners. The development staff will participate with our USA director of development to expand our global resources and to continue to insure that NGC can provide state-of-the-art products at affordable prices. NGC recognizes the need for both outstanding functionality and affordability and our use of development resources in India, China, Mexico and El Salvador enable NGC to compete effectively with any other software vendor anywhere. In addition to providing support and development to both the USA brands and their suppliers, NGC intends to also market software products directly to the Chinese factories. NGC has converted its Shop Floor Control products to Simplified Chinese to assist the Chinese production facilities in managing their production activities and improving overall efficiencies. “These new locations, combined with our current facilities in the USA, India, Mexico, and El Salvador give our NGC customers local support in the geographic areas where they are producing their products.” said Alan Brooks, president, New Generation Computing. “Local support is needed as the software solutions utilized for global operations become more extensive and important to the success of our customer’s worldwide strategies.”

About New Generation Computing
New Generation Computing (NGC) is a leader in enterprise resource planning (ERP) software, product lifecycle management and global sourcing solutions for the apparel and sewn products industries. Every day NGC solutions help hundreds of leading companies gain real-time visibility, improve speed to market and enhance quality control throughout their supply chain. Customers include VF Corporation, Russell Corp., Carter's, Dick’s Sporting Goods Inc., Gold Toe Brands Inc, Haggar Clothing Company, Hugo Boss, Jos. A. Bank Clothiers Inc., Maggy London, Armani Exchange, Maidenform Inc., Wilsons Leather, Rocky Brands and Valley Apparel.

Headquartered in Miami, NGC has offices in New York and Los Angeles, as well as China, India, Mexico and El Salvador. NGC is a wholly owned subsidiary of American Software Inc. For more information, visit www.ngcsoftware.com.

Forward-Looking Statements
This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, changes in general economic conditions, technology and the market for the Company's products and services, including economic conditions within the e-commerce markets; the timely availability and market acceptance of these products and services; the Company’s ability to satisfy in a timely manner all SEC required filings and the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules and regulations adopted under that Section; the challenges and risks associated with integration of acquired product lines and companies; the effect of competitive products and pricing; the uncertainty of the viability and effectiveness of strategic alliances; and the irregular pattern of the Company's revenues. For further information about risks the Company could experience as well as other information, please refer to the Company's Form 10-K for the year ended April 30, 2006 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information, contact: Vincent C. Klinges, Chief Financial Officer, American Software, Inc., (404) 264-5477 or fax: (404) 237-8868.