DEMO Democrasoft Holdings Inc (CE)

Democrasoft, Inc. (PINKSHEETS: DEMO) and email marketing provider iContact (www.icontact.com) today announced that the two companies have signed an agreement for iContact to become an authorized marketing channel of Democrasoft's Collaborize™ products. Democrasoft will become iContact's newest featured partner, on both its own site and within iContact's newsletter to its thousand other partners. According to the agreement, Democrasoft will also promote iContact on its own website and to its customers.

This partnership will promote Democrasoft's Collaborize product to the thousand or so businesses that have existing strategic reseller agreements with iContact, establishing an immediate potential distribution channel for Collaborize. In return, instead of a fee to iContact, Collaborize will offer a 15% coupon code discount that will be exclusive to iContact's customers and partners. Collaborize is the online social networking application that allows various groups with a common purpose to reduce their use of email by organizing their online conversations and streamline online decision-making. The service also enables organizations to create purpose-driven online communities for their internal teams, customers or external audiences. The web-based service is available on a monthly subscription basis.

With over 63,000 customers, iContact is a leading on-demand email marketing service for small businesses and non-profits. iContact allows organizations of all sizes to easily create, send, and track email newsletters, RSS feeds, surveys, autoresponders and web-based services.

"We are pleased to partner with Democrasoft and see a true synergy between the two firms," commented Eric Sternkopf, Director of Sales at iContact.

According to Democrasoft Chairman and CEO Richard Lang, the agreement between Democrasoft and iContact "will provide an efficient way for the company to access many potential customers, as well as iContact's own strategic and business partners, and to spread the word about Collaborize."

"Business entities, from small to large, are an important market for us, because often businesses have distributed teams and few resources for collaboration," Lang said. "We are pleased to be working with a market leader in email marketing. Since iContact's clients range from small business to the enterprise, we will be promoted across a broad spectrum of companies."

About iContact

With more than 63,000 customers, iContact provides email marketing for small businesses and non-profits. iContact allows for easy creation of email newsletters, surveys, and autoresponders. Market leaders like Intuit, Vonage, Symantec, International Paper, LG Electronics and ReMax, use iContact to build stronger relationships with their customers and prospects at a fraction of the cost of traditional marketing methods.

iContact, designed for the Small Business market, is available at www.iContact.com; iContactPlus, a suite of custom and managed services designed for mid-sized organizations, is available at www.iContactPlus.com.

About DEMOCRASOFT

Democrasoft, Inc., headquartered in Santa Rosa, CA is a 20-year-old public company (PINKSHEETS: DEMO) with a history of pioneering technology. The company's flagship product Collaborize™ is an online tool for organizing groups into decision-making communities. It is designed to empower groups of all sizes -- businesses, non-profits, organizations, governments, their members and citizens to resolve real problems and drive toward actual implementation of collective solutions. Collaborize is dedicated to facilitating a vision of online "social networking with purpose." For more information, visit www.democrasoft.com

This Press Release contains forward-looking statements similar to those covered by the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. We believe that the expectations expressed herein, regarding our agreement with iContact are based on reasonable assumptions. However, these forward-looking statements are subject to numerous uncertainties and risks and actual results and developments could differ materially from these expectations. Factors which could affect our operations and prospects include the costs and uncertainties of pursuing new markets and initiatives and our ability to pursue new or additional operating strategies. We are not responsible for updating any such forward-looking statements.

For More Information Contact: Mark Kithcart 888-993-8683 (ext. 706) or Francine Hardaway 602-910-5622