Offshore Creations, Inc. Announces $125,000 Contract for Jail Management System Development.

SANTA BARBARA, CA -- Offshore Creations, Inc. (PK: OFSC) announced today the signing of a contract expected to be worth a total of $125,000. Under this contract, the firm will create a modern Jail Management System to be used by the correctional authorities of several states and counties. The current contract will run for one year.

Designed to work in conjunction with the Homeland Security's Data Sharing Initiative, the system will manage the day-to-day operations of the correctional facilities, including medical care, housing, visitation, deliveries, legal status, education, and behavioral records. The existing Jail Management System was developed more than 20 years ago, and is inadequate for the demands of the Twenty-First Century.

The system will be developed under a federal grant managed by the University of Southern Mississippi. The Open Source Software Institute (OSSI) will offer the solution via a GPL Agreement which provides the software free of charge to all jails and correctional institutions throughout the United States, creating potential nationwide distribution of the company's software.

The contract was presented to Offshore Creations, Inc. by ETS Development Group, Inc., a Colleyville, Texas firm. Offshore Creations, Inc. will partner with ETS Development Group throughout the duration of the project to provide the University of Southern Mississippi with a complete Jail Management system, which with successful completion, could bring a possible future opportunity to produce a more modernized information management system for local governments.

"I look forward to working with Mr. Palm's organization to provide the University with a comprehensive Jail Management System, while offering the services at excellent rates," stated Chris Turrentine, CEO of ETS Development Group. "This was a very important joint effort in the road map of this project's development efforts."

"We are delighted by this important work," said Mr. Palm. "Offshore Creations, Inc. will gain experience in this critical vertical market, and the project will establish a significant presence for us as a technology provider in the government Information Technology space."

About Offshore Creations, Inc.

Offshore Creations, Inc. is an international software developer and Information Technology services firm with executive, business, and sales offices located in the US and engineering campuses located in Ukraine, Russia, and the Czech Republic. The 3-year-old, 130-person firm creates web-based and application-based solutions used by more than 30 customers in the US and Britain, including InfoPower Systems International, The Isera Group, and several Fortune 500 firms and military training centers. Offshore Creations, Inc. is a proud partner with Microsoft (NasdaqNM: MSFT), Sun Microsystems (NasdaqNM: SUNW), and Oracle (NasdaqNM: ORCL) Corporations, and 25 staff members are certified as Microsoft, Sun Microsystems, or Oracle developers.

Please visit the company's website at www.OffshoreCreations.com.

Safe Harbor Forward-Looking Statements

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the companies' actual results in future periods to differ materially from forecasted results. Such risks and uncertainties include, but are not limited to, market conditions, competitive factors, the ability to successfully complete additional financings and other risks.