Preo & Denali Partner on Washington State Government Agencies

PREO SOFTWARE INC. (the "Corporation") (TSX VENTURE:PKM) is pleased to announce
that it has partnered with DENALI ADVANCED INTEGRATION ("Denali") to primarily
help Washington State Government Agencies save money and trees, one page at a
time.


The agreement allows Denali to offer PREO's flagship product, Printelligence(TM)
MPS, into numerous Washington State Government agencies until June 30, 2013.


"This partnership has the potential to be a great fit for both parties", said
Gary McCone, President of Preo Software. "With Denali as a named supplier on the
State's Managed Print Services Contract combined with Preo's existing install
base in other Washington State Agencies, Preo is excited about the synergy".


"We are very pleased to be able to add Printelligence to Denali's Managed Print
Services portfolio", said John Convery, EVP Marketing and Vendor Relations at
Denali Advanced Integration. "Printelligence MPS from PREO Software has surfaced
as a premier application for identifying office printing trends and patterns,
ink and toner utilization as well as associated costs throughout an entire
organization. As a result, organizations that have implemented Printelligence,
have realized a remarkable decrease in pages printed and, subsequently, have
lowered their overall costs of printing. The Washington State Department of
Ecology has implemented and utilized the Printelligence MPS solution for almost
two years and attributes a notable reduction in pages printed to the
Printelligence MPS solution".


About Preo(TM) Software

Preo Software Inc. is the market leader in providing Print Knowledge Management
Systems (PKMS) to enterprises, select OEMs, and Managed Print Services providers
around the world. Printelligence(TM), the company's award winning flagship SaaS
(Software as a Service) offering, empowers users to optimize their print assets
and reduce print volumes, while yielding significant cost savings and reducing
the environmental footprint. 


Preo Software is a seven-year-old technology company maintaining offices in both
Canada and in the United States with products deployed in over 3,000
organizations worldwide. For more information, visit www.preosoftware.com.


About Denali Advanced Integration

Denali Advanced Integration (Denali) headquarters are located in Redmond,
Washington, with a sales office located in Portland, Oregon. Denali is a company
of 3MD, Inc. (3MD), a privately held Washington State corporation. 3MD is a
holding company for multiple operations, including Denali, with over 275
employees focused on IT consulting, IT supply chain management, and providing IT
solutions that span from large enterprises to small business and from the
desktop to the data center. Denali is able to leverage the expertise of each of
these operating divisions in order to act as a single vendor providing
comprehensive, best-in-class IT services and solutions to customers. For more
information, visit www.denaliai.com. 


Reader Advisory

Except for statements of historical fact, this news release contains certain
"forward-looking information" within the meaning of applicable securities law.
Forward-looking information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate" and other
similar words, or statements that certain events or conditions "may" or "will"
occur. In particular, forward-looking information in this press release
includes, but is not limited to, the anticipated closing date of the private
placement and the use of the net proceeds of the private placement. Although we
believe that the expectations reflected in the forward-looking information are
reasonable, there can be no assurance that such expectations will prove to be
correct. We cannot guarantee future results, performance or achievements.
Consequently, there is no representation that the actual results achieved will
be the same, in whole or in part, as those set out in the forward-looking
information.


Forward-looking information is based on the opinions and estimates of management
at the date the statements are made, and are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to
differ materially from those anticipated in the forward-looking information.
Some of the risks and other factors that could cause the results to differ
materially from those expressed in the forward-looking information include, but
are not limited to: general economic conditions in Canada, the United States and
globally; industry conditions, governmental regulation, including environmental
regulation; unanticipated operating events or performance; failure to obtain
industry partner and other third party consents and approvals, if and when
required; the availability of capital on acceptable terms; the need to obtain
required approvals from regulatory authorities; stock market volatility;
competition for, among other things, capital, skilled personnel and supplies;
changes in tax laws; and the other risk factors disclosed under our profile on
SEDAR at www.sedar.com. Readers are cautioned that this list of risk factors
should not be construed as exhaustive. 


The forward-looking information contained in this news release is expressly
qualified by this cautionary statement. We undertake no duty to update any of
the forward-looking information to conform such information to actual results or
to changes in our expectations except as otherwise required by applicable
securities legislation. Readers are cautioned not to place undue reliance on
forward-looking information.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of the securities in any state of
the United States or any other jurisdiction outside of Canada in which such
offer, solicitation or sale would be unlawful. The securities have not been
registered under the U.S. Securities Act of 1933, as amended, or any state
securities laws and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of
the U.S. Securities Act of 1933 and applicable state securities laws.
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