XFormity Technologies, Inc. Announces First Quarter Results with Record Revenues and its First Profitable Quarter

DALLAS--(BUSINESS WIRE)--XFormity Technologies, Inc. (OTCBB: XFMY.OB), a leading provider of technology services to multi-unit restaurant organizations, today reported financial results for its 1^st quarter ending September 30, 2008. Revenues continued to grow at a record pace.

The Company reported revenues for the first quarter of $567,521, a 75% increase over the first quarter of 2007 revenue of $324,947. “We are very pleased with the direction of the company and with our revenue growth,” stated Chris Ball XFormity’s CEO. There was also a significant improvement in net profit, with the first quarter net profit of $65,673 a 150% increase over the first quarter of 2007 net loss of $131,758.

As of October 23, 2008, the Company entered into an agreement with its patent counsel in full settlement of its $1,575,000 obligation as reflected in the Company’s 8-K filing effective November 4, 2008. This will create a non-operating profit of $698,000 that will be recognized in the Company’s 2^nd quarter results ending December 31, 2008. The Company is pleased to have resolved this matter that will not significantly impact its cash flow in the future. The Company believes it will continue operating profitability in its 2^nd quarter.

“As the latter half of 2008 and the first half of 2009 unfolds, we believe that we will continue to see good demand for our services. We continue to receive inquiries from numerous food-service organizations that are looking to develop increased visibility into their restaurant operations,” commented Chris Ball CEO of XFormity. Mr. Ball added, “We now have our Business Intelligence and Balanced Scorecard solutions deployed across 10,000 restaurant locations. Surpassing the 10,000^th restaurant deployment is a significant milestone for XFormity.”

About XFormity Technologies, Inc. - www.xformity.com

XFormity Technologies, Inc. is a technology service provider to multi-unit business operators with solutions that provide polling services, business intelligence, balanced scorecards, benchmarking toolkits, data integration, and best-practice management tools. XFormity's hosted suite of solutions provides management personnel access to key performance information which helps detect and control loss of cash and product. XFormity's low up-front cost model provides customers with an immediate return on their investment. More information about XFormity is available at www.xformity.com.

Statements contained in this release, which are not historical facts, including statements about plans and expectations regarding business areas and opportunities, acceptance of new or existing businesses, capital resources and future business or financial results are "forward-looking" statements. You should not place undue reliance on these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, but not limited to, customer acceptance of our products, our ability to raise capital to fund our operations, our ability to develop and protect proprietary technology, government regulation, competition in our industry, general economic conditions and other risk factors which could cause actual results to differ materially from those projected or implied in the forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this press release to conform these statements to actual results or to changes in our expectations, except as required by law.

XFormity Technologies, Inc.
Ken Johnson, 612-919-0061
ken.johnson@xformity.com