Democrasoft Completes Private Placement

SANTA ROSA, Calif., June 27, 2012 /PRNewswire/ -- Democrasoft, Inc. (OTC: Pinksheets: DEMO) today announced the completion of a $500,000 interim funding private placement; most of the securities were sold to existing investors.

The company sold a total of $500,000 of two year 10% convertible notes to fund current operations.  Payment of the notes is secured by all of the Company's intellectual property.  If all of the notes and accrued interest are converted at the $.08 conversion price, the company would issue approximately an additional 7,000,000 shares of its common stock.

"We are very gratified by this show of support from those who know us best," said Richard Lang, CEO. "We believe that our multi-purpose Collaborize® platform and the Collaborize Classroom® application - as well as a new product line that we will be launching soon - collectively provide significant growth opportunities for us."

Lang noted that during the seasonally slow late spring months, world-wide Collaborize Classroom launches have been averaging over 450% higher each month than at the same time last year.  "This is particularly encouraging as launches generally pick up substantially from this point forward, both because teachers are already starting to think about the beginning of the school year and because the company also makes presentations at important industry events during this time of year," said Lang.  Lang reported that individual Collaborize Classroom launches just surpassed 28,000 worldwide.

The Company also announced two significant industry awards.  The American Association of School Librarians (AASL) has named Collaborize Classroom one of the "Top 25 Best Websites for Teaching and Learning in 2012" for being "the best of the best."  In addition, Collaborize Classroom is a 2012 Codie Award Finalist for Best Education Community Solution.

"These awards indicate that Collaborize Classroom is being recognized by multiple educational organizations composed of teachers, librarians and students using the platform every day," said Lang.

Collaborize Classroom (http://collaborizeclassroom.com), available free of charge to all grade levels, gives teachers the ability to extend in-class conversations to private and secure online sites accessible by any Internet browser or from any iPhone, iPad or iTouch. Teachers post topic-based lessons on any subject in their own Collaborize Classrooms and invite their students to participate in online group discussions, usually after school. More than 1.75 million lessons have been delivered to students using the Collaborize Classroom platform so far.

For more information about Collaborize Classroom, or to schedule an interview with Democrasoft senior management, please contact Mark Kithcart at:  [email protected] or call 888-993-8683 x 706.

About Democrasoft:

Democrasoft, Inc., headquartered in Santa Rosa, CA, is a 20-year-old public company (OTC: PINKSHEETS: DEMO) with a history of pioneering technology. The Company's flagship product, Collaborize®, is a web-based solution for organizing groups with a common purpose into powerful, decision-making communities. It is designed to empower groups of all sizes - educators, businesses, non-profits, organizations, governments, their members and citizens - to resolve real problems and drive toward actual implementation of collective solutions. Democrasoft is dedicated to facilitating a vision of online "social networking with purpose."  For more information, please visit http://democrasoft.com.  

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS: This presentation contains forward-looking statements or forward-looking information ("forward-looking statements"). These statements can be identified by expressions of belief, expectation or intention, as well as those statements that are not historical fact. Forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. Forward-looking statements contained in this press release are based on our current estimates, expectations and projections, which the company believes are reasonable as of the current date. Actual results could differ materially from those anticipated or implied in the forward-looking statements and as a result undue reliance should not be placed on forward-looking information. Additional risks and uncertainties can be found in company's reporting documents.   Forward-looking statements are given only as at the date of this presentation and the company disclaims any obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Democrasoft, Inc.