2006 Proves Stellar Year for Digital Sheet Music Innovator: FreeHand Systems, Inc Triples Retail Distribution, Cuts Manufacturing Costs, Continues Asian Expansion and Releases Newly Completed Audited Financial Statements.

LOS ALTOS, Calif. & NEW YORK -- FreeHand Systems, Inc., a wholly owned subsidiary of FreeHand Systems International, Inc. (OTC:FSYI), announces today the completion of the company's first financial audited statements for 2003 and 2004 (www.pinksheets.com/quote/finance.jsp?symbol=FSYI). The company's auditors, BDO Siedman, predict finished audits for 2005 ad 2006 will be complete shortly. The release of FreeHand's financials follows the corporation's most remarkable and productive year to date.

FreeHand Systems, Inc. (www.freehandsystems.com) is the global leader in digital sheet music publishing. As the manufacturer of the first digital music performance and education tablet, the MusicPad Pro[R] Plus, FreeHand provides the most innovative technology available to the music industry for displaying and publishing digitally delivered sheet music. Additionally, the company's accompanying digital sheet music website, www.freehandmusic.com, offers over 90,000 titles for digital download to print or transfer to the MusicPad Pro.

In 2006, the number of distribution outlets carrying the MusicPad[R] Pro Plus tripled while the number of sheet music retailers using FreeHand's download-to-print services, Sheet Music Now, grew to nearly 1000! Recent partnerships include Guitar Center, the largest retailer of musical instruments in the US, and Sam Ash, the second largest musical instrument supplier in the country. The pad is currently carried in North America, Europe and Asia and continues to expand into new territories continually.

In the foreign marketplace, FreeHand recently acquired the catalog for People's Music Publishing House, China's sole government-managed music publishing house. The partnership will make many Chinese musical works available to the West for the first time. Moreover, Chinese musicians will now also have legal access to western sheet music.

Other exciting developments in Asia include a new partnership with Japan's leading musical instrument retailer, Yamano Music, to carry FreeHand pads in its stores throughout the country. and the MusicPad is now carried by Hong Kong and mainland China's leading musical instrument retailer, Tom Lee Music.

In addition to FreeHand's physical retail expansion, the corporation continues their growth through online retail avenues with their recent partnerships with the largest and second largest online retailer of musical instruments and tools - Musician's Friend (www.musicianfriend.com) and Sweetwater (www.sweetwater.com).

To further FreeHand's accessibility and make it the most widely used sheet music digital tool for professional, amateur and student musicians alike, the company's manufacturers have exceeded early expectations by developing production methods that will reduce consumer Pad Pro costs by US$200 per pad. The company has also fulfilled its commitment to purchase new sets of accessories, which will reduce retail accessories costs up to 50%.

Says Kim Lorz, CEO of FreeHand Systems: "This has been a tremendously exciting year for us. The staff of FreeHand is pulling out all the stops, working non-stop, weekends, whatever it takes, to bring this incredible technology to center stage where it belongs. At the risk of sounding immodest, if we can accomplish the kinds of things we have in 2006, in the space of twelve months, just imagine where we'll be this time next year?"

This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements regarding potential sales, the success of the company's business, as well as statements that include the word "believe" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of FreeHand Systems International, Inc. to differ materially from those implied or expressed by such forward-looking statements. Such factors include, among others, the risk factors included in FreeHand Systems International, Inc.'s Annual Report and any subsequent reports filed with the SEC under the Exchange Act. This press release speaks as of the date first set forth above and FreeHand Systems International, Inc. assumes no responsibility to update the information included herein for events occurring after the date hereof. Actual results could differ materially from those anticipated due to factors such as the lack of capital, timely development of products, inability to deliver products when ordered, inability of potential customers to pay for ordered products, and political and economic risks inherent in international trade.