Press Release - For Immediate Release

KVS Awarded Pennsylvania State Contract for Second Year
Local PA Government Members Continue to Make Direct Purchases

Williamsville, NY- October 31, 2006 - KVS Information Systems, Inc. was again awarded a state contract with the Pennsylvania Department of General Services (DGS) following a recent rebid process.  For the second year in a row, municipalities and other public agencies throughout Pennsylvania will be able to purchase the company's government software.

Over 2,000 local public procurement units across Pennsylvania are currently members of the DGS "COSTARS" program (Cooperative Sourcing to Achieve Reductions in Spending) which awards the contract.  COSTARS members save time and money by purchasing supplies directly from companies awarded the contract, rather then issuing a bid to multiple vendors for proposals.

"In its first year with the COSTARS program, KVS has added five new clients, which proves the success of the program," said KVS President Ed Warnke.  "This is an example of KVS's commitment to becoming a leader in government solutions in Pennsylvania," he added.

KVS Information Systems, Inc. a leading provider of municipal software solutions since 1969, is headquartered in Williamsville, NY.  For more information, please visit KVS online at www.kvsinfo.com.