MIAMI, June 12, 2006– New Generation Computing Inc. (NGC), a wholly owned subsidiary of American Software Inc. (NASDAQ: AMSWA), announced today the release of its latest version of RedHorse, a comprehensive Enterprise Resource Planning system designed specifically for the apparel and sewn products industry. RedHorse 2006 uses the current version of MS SQL Server and has Certification from Microsoft. NGC’s products include RedHorse, ERP system; e-SPS, global sourcing and supply chain management system; e-PDM, product lifecycle management, and TPM, a shop floor control and payroll system. RedHorse 2006 interfaces with NGC’s e-SPS, e-PDM and TPM as well as with third-party software such as UPS and FedEx shipping systems, DMI forecasting, Microsoft FRx and DCCS Warehouse Management System, thereby creating a comprehensive ERP solution for today’s global apparel business. “NGC has 25-plus years experience in developing software specifically for the apparel and sewn products industries and our RedHorse 2006 is a very secure, robust and user-friendly ERP Solution designed with our customers’ needs in mind,” said Alan Brooks, President, New Generation Computing. “The new features in RedHorse 2006 will make Customer Service Support, Production, EDI, Order Fulfillment and Financial Accounting more streamlined for quicker response and problem resolutions as well as providing increased visibility & integration throughout the enterprise.” RedHorse 2006 is a highly robust ERP solution with enhanced features and functionality throughout its various modules consisting of: Customer Order Processing, EDI Information System, Invoicing and Accounts Receivable, Finished Goods Inventory Control, Components Inventory, Purchasing and Receiving, Accounts Payable, General Ledger, Import Management, Remote Plant Management, Locator System and Screen Printing and Embroidery. “We are extremely pleased with the new version of RedHorse 2006 and believe this is one the most comprehensive ERP solutions available to the apparel industry,” added Brooks. “We have received excellent feedback from the marketplace on our new RedHorse features and functionality.”

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.