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Democrasoft Sells 2 Patent Families Following Patent Auction


February 22, 2011 - Santa Rosa, CA

Democrasoft, Inc. (PINKSHEETS: DEMO) today announced that, in recently closed transactions growing out of a November auction of intellectual property in Napa, California, it has sold two families of network optimization patents for net pretax proceeds of approximately $750,000.

The patents, generally known as the "Polish" (named for inventor Nat Polish) and the "Allen" (named for inventor Arthur Allen) patents, cover methods of optimizing network efficiency. Network optimization is important because of current and anticipated bandwidth capacity issues for most networks.

"While we believe that these patent families are very important to the industry, we determined to auction them off to the highest bidders because they are not relevant to our current business model," said Richard Lang, Chairman & CEO of Democrasoft, Inc. According to Lang, when the patent families were not sold at the auction, auctioneer iCAP/Ocean Tomo pursued other sale avenues, as it was authorized to do. "We are pleased to have monetized these patent families at prices close to the auction reserve prices as part of our ongoing effort to enhance shareholder value by disposing of intellectual property which is left over from our prior business model," said Lang.

"We have other potentially valuable intellectual property, which we hope to monetize," Lang added, noting that there is no assurance that any such monetization will occur. "However, we are focusing our energies on making our Collaborize® line of web-based collaboration and educational software a success," Lang stated.

The Company presently intends to use the proceeds, which are expected within 30 days, to support the Collaborize product lines and for other corporate purposes.

About DemocraSoft®:
DemocraSoft, Inc., headquartered in Santa Rosa, CA, is a 20-year-old public company (PINKSHEETS: DEMO) with a history of pioneering technology. The company's flagship product, Collaborize®, is a web-based solution for organizing groups with a common purpose into powerful, decision-making communities. It is designed to empower groups of all sizes -- businesses, non-profits, organizations, governments, their members and citizens -- to resolve real problems and drive toward actual implementation of collective solutions. Democrasoft is dedicated to facilitating a vision of online "social networking with purpose." For more information, please visit http://Democrasoft.com.

For Further Information Contact:
Richard Lang
888-993-8683

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