Park City Group Announces 2006 Financial Results

Park City, Utah - Sep 29, 2006 --Park City Group, Inc. (OTCBB: PCYG) today announced financial results for the 2006 fiscal year ending June 30, 2006. For the full year, the Company reported revenues of $7,085,125 compared to $3,631,812 in 2005, a 95% increase. Net income for the 2006 fiscal year was $1,393,596 versus a loss of ($3,408,037) for the 2005 fiscal year.

Highlights of the year include:

• Software license sales increased 656% from $479,615 in 2005 to $3,626,821 in 2006.
• ASP revenues increased 74% from $104,367 to $182,083.
• Consulting revenues increased 37%, from $735,522 to $1,004,224.
• Total liabilities during the year were reduced from $8,772,879 to $3,344,825.
• Interest expense declined from $1,178,454 to $884,404.
• Stockholder equity increased from a deficit of ($7,702,949) to a surplus of $1,481,638.
• Cash and Cash Equivalents increased from $209,670 to $3,517,060.

Over the course of the year, Park City Group added several new clients and customers including marquee food suppliers like Perdue Farms and Monterey Mushrooms, and with tier-one Convenience Store retailers like Circle K, Race Trac and Kwik Trip for new installations. Renewed agreements with long- time customers like Tesco-Lotus, Wawa, Sheetz, The Home Depot, PacSun, Schnucks and Roche Brothers were also added. Chairman and CEO Randall K. Fields commented, “The 2006 fiscal year was an extraordinary period for Park City Group. In addition to seeing a dramatic swing from a loss in 2005 to a substantial profit in 2006, we spent a great deal of time this year putting in place the foundation we need to support our business plan. As previously reported, a major restructuring of our balance sheet has dramatically reduced the size of our outstanding debt and the reduced annual interest expense will add significantly to net income. We also strengthened our working capital position with a $5 million dollar financing during the fourth quarter. Coupled with the debt restructuring, Park City Group now has a significantly stronger balance sheet to help support our growth expectations. The final piece of our efforts to strengthen our capital structure was a reverse split of the Company’s shares in August. We believe the reduced number of shares outstanding will create greater visibility for our earnings per share and thus make our stock more appealing to institutional investors We made strong progress in all of our targeted markets during the year and our success there is continually bolstered by our focus on staying ahead of the technological curve of the industry. The recent announcement of the upgrade of our Fresh Market Manager solution is an example of that effort. We have added some key personnel to our professional staff including positions in marketing, account service, development, data analytics, and accounting. These staff additions are very important to the build up of the infrastructure we will require going forward.

In addition, based on input from our current customers and needs expressed by the market, we also began development of several new products that we expect to be completed in the near future. We also organized a group within our Professional Services Organization to help our customers with metrics analytics, and a development team in Bangalore, India to enhance our productivity and time to market. We are very pleased with all that we have achieved in the past year. We feel that we now have in place critical elements of what we need to service this fast moving and rapidly expanding industry and we look forward to a strong 2007.”

About Park City Group

Park City Group, Inc. develops and markets patented computer software that helps its retail customers to increase their sales while reducing their inventory and labor costs: the two largest, controllable expenses in the retail industry. The technology has its genesis in the operations of Mrs. Fields Cookies, co-founded by Randy Fields, CEO of Park City Group, Inc. Industry leading customers such as The Home Depot, Victoria’s Secret, The Limited, Anheuser Busch Entertainment and Tesco Lotus benefit from our software. To find out more about Park City Group (OTCBB: PCYG) visit our website at www.parkcitygroup.com. Statements in this press release that relate to Park City Group's future plans, objectives, expectations, performance, events and the like are forward-looking statements. Future events, risks and uncertainties, individually or in the aggregate, could cause actual results to differ materially from those expressed or implied in these statements. Those factors could include changes in economic conditions that may change demand for the Company's products and services and other factors discussed in the "forward- looking information" section and the "risk factor" section of the management's discussion and analysis included in the Company's report on Form 10-KSB/A for the year ended June 30, 2005 filed with the Securities and Exchange Commission. This release is comprised of interrelated information that must be interpreted in the context of all of the information provided and care should be exercised not to consider portions of this release out of context. Park City Group uses paid services of investor relations organizations to promote the Company to the investment community. Investments in any company should be considered speculative and, prior to acquisition, should be thoroughly researched. Park City Group does not intend to update these forward- looking statements prior to announcement of quarterly or annual results".