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SoftSmiths Reports Successful Industry Testing Results

Houston, TX. – August 15, 2007 – SoftSmiths, Inc., a leading energy software solutions and services company, today announced successful results in ongoing compliance testing of its E-Tag and Market applications with NERC Electronic Tagging Version 1.8, ERCOT Nodal EDS3, and CAISO Market Redesign and Technology Upgrade (MRTU) market simulations.

SoftSmiths Electronic Tagging is a NERC e-Tag 1.7 compliant solution, providing Agent, Approval, and Authority services. Following the release of E-Tag 1.7 in 2002, and enhancements to that specification from 2002 through early 2007, NAESB’s Joint Interchange Scheduling Working Group has been working on E-Tag 1.8, a major update that is scheduled for release in December 2007. SoftSmiths has been successfully participating in the interoperability testing for this release in early August.

The SoftSmiths Markets product suite helps Market Participants in ERCOT and CAISO to automate the submission of energy schedules, bids and offers to the ISO, performs a shadow settlement of ISO charges, and consolidates ISO market information in a single database

The ERCOT Nodal Program designed four Early Delivery System testing phases to meet the requirements of the transition from Zonal to Nodal. EDS 3 includes performing SCED testing, planned for October 1. The SoftSmiths Market-ERCOT application has been successfully tested with all the main interfaces: Three Part Offer, Current Operating Plan, Incremental / Decremental Offers, and Output Schedules, and is ready for EDS 3 Release 5 Phase 1 connectivity testing for Market Participants prior to the SCED testing.

The CAISO MRTU Integrated Market Simulation (IMS) provides for testing and simulation of market functions. SoftSmiths has successfully tested its products against the functionality that is available for testing, and participates in the CAISO-led workshops where Market Participants are working with the CAISO to resolve several significant issues impacting go-live in early 2008.

About SoftSmiths

SoftSmiths, Inc. delivers critical electronic energy trading and operations solutions and services that enable energy industry participants to enhance profitability and reliability in the competitive marketplace. SoftSmiths' proven solutions and in-depth knowledge of the industry's business practices allow its customers to automate manual processes, eliminate redundancies, and increase business visibility across the enterprise to allow faster decision making and more informed decisions, thereby improving profitability, operational efficiencies and cash flow. The company has been successfully delivering e-business solutions to energy service companies since 1997.

SoftSmiths is a registered trademark of SoftSmiths, Inc.

Contact Information:

SoftSmiths Inc.
Hugo Stappers
Phone:    713.626.9184
Fax:          713.626.0186
Email:      mkt@softsmiths.com
Website:  www.softsmiths.com



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