API Named Finalist for Annual MS-HUG Awards; Awards Recognize Innovative Microsoft-Based Healthcare Solutions.

HARTFORD, Wisc. -- API Software, Inc. announced today that the company's api LaborWorkx(R) Series - Payrollmation(R) product has been named a finalist in the administrative/financial systems category for the eighth annual MS-HUG (Microsoft Healthcare Users Group) awards. These awards showcase the most innovative solutions and customers of Microsoft(R) technology in the healthcare industry. Award contestants are evaluated on the extent to which they provide significant business benefits to healthcare organizations and improve patient care.

Payrollmation automates and simplifies the time and attendance data collection and calculation process, streamlines time card management, improves employee morale and helps healthcare organizations to control labor costs. With labor expenses accounting for as much as 60 percent of an organization's budget, managing employee data is a critical component to success in a very competitive marketplace. API's open applications utilize industry-standard Microsoft technology and are developed to work together to provide healthcare organizations with real-time employee information that helps every level of employees -- from clinical and administrative workers to managers and executives -- make better informed business decisions.

"API is proud that we've been named as a finalist in the MS-HUG awards competition for the seventh time, and have won our category four times," said Luis Garcia, API president and chief executive officer. "We realize, however, that the real winners are in this competition are our clients. They have the best technology available in the industry to solve their toughest organizational challenges."

API and the other finalists will demonstrate their solutions in the Microsoft booth at the HIMSS 2005 Conference & Exhibition, Feb. 14-17, in Dallas. Winners will be announced in the theater at the Microsoft on Tuesday, February 15. To see a list of winners, go to the HIMSS and MS-HUG Web sites: http://www.himss.org and http://www.mshug.org/awards.

About API

API Software, Inc. is a leading provider of time and attendance, staffing/scheduling, payroll, human resource, productivity management, education tracking and access control software for healthcare organizations. Founded in 1982, API has more than 400 installations in the United States, with customers ranging in size from 500 employees to more than 30,000 employees. The company's Payrollmation(R) product is a 2002 Best In KLAS Performance award recipient in the specialty niche category, and continues to be the top-rated time and attendance system in 2003 and 2004. API has a strategic alliance with Microsoft Corporation and is a Microsoft Certified Solution Provider. The company's Web site address is www.apisoftwareinc.com.

Other product and company names herein may be the property of their respective owners.