BSG Basicgov Systems Inc.

BasicGov Systems, Inc. (TSX VENTURE: BSG) ("BasicGov" or the "Company") today announced that it has reached agreement with Harris Computer Corporation on the amount of the holdbacks under the Acquisition Agreement and that net proceeds totaling $494,697 has been received by the Company. The Acquisition Agreement and holdbacks relate to the disposition of assets in 2008 and will result in an additional $119,258 write-down of the holdbacks receivable in 2009.

Certain former shareholders of the Company who hold Subscription Receipts are entitled to a total of 15% of the holdback sums received which equals $74,205. This amount will be distributed shortly to holders of Subscription Receipts and represents $0.0173 per Subscription Receipt less an adjustment for SBVCA tax credits if applicable.

About BasicGov Systems, Inc.

BasicGov Systems, Inc. (TSX VENTURE: BSG) develops, sells and supports BasicGov web-based software for cities and local governments that streamlines permitting and inspections, code enforcement and planning. BasicGov is a reliable, secure solution delivered for an affordable price and the only web-based software for local governments built on the Force.com, the cloud computing platform from SalesForce.com used by more than 55,000 organizations worldwide. Unlike enterprise software that is expensive to acquire and difficult to implement, BasicGov requires no capital investment and is simple to set up. Users pay a monthly subscription fee per module and no capital investment is required. www.basicgov.com

Forward-Looking Statements

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in market and competition, technological and competitive developments, cooperation and performance of strategic partners and potential downturns in economic conditions generally. Forward-looking statements are based upon management's estimates, beliefs and opinions. The Company assumes no obligation to update forward-looking statements, other than as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: BasicGov Systems, Inc. Ian Power CFO +1 (604) 729-5142 info@basicgov.com www.basicgov.com