NGC Announces a Strategic Alliance with Paxar Corporation

New Generation Computing (NGC) today announced that it has formed a strategic alliance with Paxar Corporation (NYSE: PXR), a global leader in branding and identification solutions to the retail and apparel industry.

NGC, a wholly owned subsidiary of American Software Inc. (Nasdaq: AMSWA), is a market leader in product lifecycle management (PLM), global sourcing and ERP software for the apparel and sewn products industries. Paxar designs and manufactures tickets, tags and labels, and provides the technology -- including printers, software control systems and necessary supplies -- for retail product identification. The company also has an extensive network of regional service centers to support factories around the world. Its customers include major retailers, branded apparel companies and contract manufacturers.

The alliance combines the two companies' strengths and unmatched experience in delivering supply chain innovations to the apparel and footwear industries. NGC and Paxar are integrating their software and service solutions in order to simplify and improve the reliability of the labeling process, and to ensure greater compliance by factories. The NGC-Paxar solution will also help apparel brands and retailers protect their brands.

Using NGC's e-SPS(R) web-based software for global sourcing, apparel brands and retailers will be able to automatically order labels and tags online from Paxar when the P.O. is issued, or else provide specifications for in-house printing by the factory. Integration with the e-SPS time and action calendars will reduce delays in label and tag delivery and improve collaboration and visibility between supply chain trading partners. The solution supports RFID and will enable customers to comply with the growing demand for RFID labeling.

"For our mutual customers, this alliance will provide a simpler, easier to use capability by leveraging the strengths of our respective systems," said Steve Babat, Vice President and Chief Information Officer, Paxar Corporation. "Apparel manufacturers will find advantages in managing and ordering identification products, while brands and retailers will benefit from increased brand protection and supply chain visibility."

"The alliance between NGC and Paxar expands both companies' product offerings while delivering significant benefits to our customers," said Alan Brooks, President of NGC. "Together we are bringing a new level of efficiency, ease of use and visibility to production, packaging and logistics."

About Paxar Corporation

Paxar Corporation is a global leader in providing identification solutions to the retail and apparel industry worldwide. Paxar's leadership in brand development, merchandising, information services and supply chain solutions enables the Company to satisfy customer needs around the world. For more information on Paxar, visit http://www.paxar.com.

About New Generation Computing

New Generation Computing (NGC) is a leader in product lifecycle management (PLM), global sourcing and enterprise resource planning (ERP) software for the apparel and sewn products industries. Every day NGC solutions help hundreds of leading companies gain real-time visibility, improve speed to market and enhance quality control throughout their supply chain. Customers include VF Corporation(R), A|X Armani Exchange(R), Russell Corp(R), Carter's(R), Casual Male Retail Group(R), Haggar Clothing Company, Landau Uniform, Hugo Boss, Dick's Sporting Goods, Vikki Vi, Isda & Co., lululemon athletica, Tristan & America(R), Axis(R), Wilson's Leather(R) and many others.

Headquartered in Miami, NGC has offices in New York and Los Angeles, as well as China, India, Mexico and El Salvador. NGC is a wholly owned subsidiary of American Software Inc. For more information, visit http://www.ngcsoftware.com.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to substantial risks and uncertainties. There are a number of factors that could cause actual results to differ materially from those anticipated by statements made herein. These factors include, but are not limited to, changes in general economic conditions, technology and the market for the Company's products and services, including economic conditions within the e-commerce markets; the timely availability and market acceptance of these products and services; the Company's ability to satisfy in a timely manner all SEC required filings and the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the rules and regulations adopted under that Section; the challenges and risks associated with integration of acquired product lines and companies; the effect of competitive products and pricing; the uncertainty of the viability and effectiveness of strategic alliances; and the irregular pattern of the Company's revenues. For further information about risks the Company could experience as well as other information, please refer to the Company's Form 10-K for the year ended April 30, 2006 and other reports and documents subsequently filed with the Securities and Exchange Commission. For more information, contact: Vincent C. Klinges, Chief Financial Officer, American Software, Inc., (404) 264-5477 or fax: (404) 237-8868.

TRADEMARKS: e-SPS, NGC and RedHorse are registered trademarks of New Generation Computing, Inc. All other trademarks or registered trademarks are properties of their respective companies.