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October 28, 2008

New Mexico Software's Medical Imaging System Gets U.S. FDA Clearance

FDA allows NMS to begin a new level of marketing for its XR-EXpress in the U.S

ALBUQUERQUE, NM, October 28-- New Mexico Software, Inc. (OTC Bulletin Board: NMXC), www.nmxc.net, a leading services provider of next-generation business and medical products, announced today that the company has obtained 510(k) clearance for its XR-EXpress Picture Archiving and Communication System (PACS) from the U.S. Food and Drug Administration (FDA). This acknowledgement by the FDA allows New Mexico Software to begin a new level of marketing for its XR-EXpress in the U.S.

XR-EXpress PACS is a teleradiology system designed to retrieve HIPAA (Health Insurance Portability and Accountability Act) compliant medical images in DICOM (Digital Imaging and Communications in Medicine) format. Also, it generates, organizes and archives textual reports while making them accessible across web networks with customized user interfaces.

XR-EXpress will be targeted to hospitals, imaging centers, nursing homes, radiology reading practices, and authorized users who require patients’ images, demographics, and report information. FDA classified XR-EXpress as a Class II device under Regulation 21 CFR 892.2050 with product code LLZ.

New Mexico Software CEO Dick Govatski said, “Over the last few years, we have successfully developed XR-EXpress into a strong internet-based teleradiology platform. XR-Express enables licensed radiologists to read X-ray, ultrasound, and computed tomography (CT) easily with an Internet connection and browser. This FDA 510(k) clearance is essential to our growth strategy and marks a watershed event in our business development.”

President of the Healthcare division of New Mexico Software, Bruce Stabile said, "FDA clearance is required for nearly all medical devices to be marketed in the U.S. This definitely opens the door for future introductions to the US market of our other XR-Express medical products including video consultations and mobile phone applications."

About New Mexico Software

New Mexico Software, Inc. is a leading provider of information management solutions that significantly improve the interface between the paper world and the digital world, facilitating a true paperless environment. For more information, visit www.nmxc.net or www.nmxs.com, or contact Dick Govatski, president and CEO, at (505) 255-1999 or ceo@nmxs.com.

An investment profile on New Mexico Software may be found at www.hawkassociates.com/nmxcprofile.aspx. For an online investor relations kit, visit www.hawkassociates.com or www.americanmicrocaps.com. For more investor-related questions, contact Frank Hawkins, Hawk Associates, at (305) 451-1888 or info@hawkassociates.com. To subscribe to future releases via e-mail alert, visit www.hawkassociates.com/email.aspx.