TouchStone Software Corp (fka TSSW)

[MikeDDKing]

DriverAgent Spanish Localization
NORTH ANDOVER, Mass. TouchStone Software Corporation announced today that it has completed localization of its web application "DriverAgent" -- the award-winning device driver scan and updating service -- for Spanish speaking users. "People from around the globe have asked us, and we have listened to them", said Chris Dunigan, Director of Product Management. "Recently we introduced a German localized version of DriverAgent and before that French and Portuguese, we now add Spanish to that list and other languages are being worked on. We will continue localizing our web applications in an effort to make them more appealing and marketable internationally."

To view an example of the localized DriverAgent in Spanish, please click on the image below:


This milestone represents TouchStone Software's interest in providing device driver updates through DriverAgent.com to subscribers worldwide, and supporting the largest possible audience in their own native language. Statistical data obtained for DriverAgent.com through Google Analytics(TM) indicate that approximately 11% of visitors to DriverAgent.com are using a Spanish language browser, 9% German, 8% Portuguese, 8% French, and 5% Russian.





SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
The prior discussion and analysis of TouchStone Software Corporations financial condition and results of operations should be read in conjunction with the Companys Consolidated Financial Statements and other financial information included herein. The Managements Discussion and Analysis or Plan of Operation and other sections of this report contain forward-looking statements that are based on the current beliefs and expectations of the Companys management, as well as assumptions made by, and information currently available to, the Companys management. Future events and results could differ materially from those set forth in or underlying the forward looking statements.

The Annual Report on Form 10-KSB contains forward looking statements. Statements containing expressions such as may, will, project, or might, expect, believe, anticipate, intend, could, would, estimated, potential, continue, or pursue, or the negative or other variations thereof or comparable terminology used in the Companys press releases and in its reports filed with the Securities and Exchange Commission are intended to identify forward-looking statements. These forward-looking statements, which are included in accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, may involve known and unknown risks, uncertainties and other factors that may cause the Companys actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this report. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that actual results will not differ materially from these expectations. From time to time, these risks, uncertainties and other factors are discussed in the Companys filings with the Securities and Exchange Commission. Such factors include, but are not limited to, the following:

· that we will continue to enter reseller and original equipment manufacturer relationships;

· that current relationships with BIOS manufacturers will remain unchanged and they will continue to be supportive with resources such as links to our website from theirs;

· that we anticipate our gross margins may increase;

· that our available cash resources will be sufficient to meet our anticipated needs for working capital and capital expenditures for at least the next year;

· our ability to secure additional sources of financing;

· our ability to control operating expenses;

· a decline in the general economy; and

· unauthorized resellers of Phoenix and Award BIOS that may engage in business.

We caution investors that there are a number of important factors, in addition to those above, that could cause our results to differ materially from those indicated by such forward-looking statements, including those set forth below in the Factors that May Affect Future Results and Market Price of Stock and elsewhere throughout this report.


FACTORS THAT MAY AFFECT FUTURE RESULTS AND MARKET PRICE OF STOCK
Our quarterly operating results are subject to significant fluctuations, and you should not rely on them as an indication of our future results.

Our revenue and operating results may vary significantly from quarter to quarter due to a number of factors, not all of which are in our control. Future revenue is difficult to forecast and for the foreseeable future will be influenced by the timing and amount of sales to new customers.

Although we have reduced operating expenditures through various methods, many of our continuing expenses are relatively fixed and are incurred in part based on expectations of future revenue. We may be unable to adjust spending quickly enough to offset any unexpected revenue shortfall. Accordingly, any shortfall in revenue may cause significant variation in operating results in any quarter.



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Because of these factors, you should not rely on quarter-to-quarter comparisons or our results of operations as an indication of our future performance. It is possible that, in future periods, our results of operations may be below the expectations of public market analysts and investors. This could cause the trading price of our common stock to decline.

Competition could reduce our market share and harm our business.

Competitors may be able to develop products and services that are more attractive to businesses than our products and services.

If we cannot deliver satisfactory support and maintenance services to our customers, our revenues may be harmed.

Our business will not grow if we do not keep pace with the rapidly changing technologies.

We may need additional financing which could be difficult to obtain.

Our business may suffer if we cannot protect our intellectual property.

Our stock price is likely to be highly volatile.

The price at which our common stock will trade has been and is likely to continue to be highly volatile and may fluctuate substantially due to a number of factors, many of which are beyond our control, including:
· actual or anticipated fluctuations in our results of operations

· our ability to raise additional capital if needed

· technological innovations by us or our competitors

· increased competition

· additions or departures or key personnel

· conditions and trends in our industry

· general market conditions

· our common stock is currently traded on the Over The Counter Bulletin Board, where share price volatility is more prevalent.



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