New Mexico Software Shareholder Update from Chairman and CEO Dick Govatski

New Mexico Software, Inc. (OTCBB: NMXC), a leading services provider of next-generation business and medical services, issued this letter today to shareholders and stakeholders of New Mexico Software to provide an update on significant business activities at the Company:

It’s been almost a year and a half since we formed Telerad Service, Inc., a wholly owned New Mexico Software subsidiary. During this first full year, we’ve added multiple new customers and we have improved our business processes with the help of our whole team. Because of a great combination of engineering, customer service, accounting, operations and sales, we’ve grown our business significantly. Holidays are normally very slow for us. But on Labor Day, we did three times the business we did on Labor Day in 2008. The numbers were not as high for us as they are during a regular workday; however, the improvement in business on a comparative basis was significant.

If you have been an investor in NMS, you’ve seen our financial statements improve significantly over the last year. You’ve seen steady growth on the top line – a reflection of the integration of the software business with our medical service business. Our software activity has dramatically evolved from when we started 10 years ago to a much different role in 2009. Our software efforts are now focused on medical software, which is the engine for our medical service business. In other words, the intellectual property developed over the past decade has found an ideal market.

The medical community is in an unsettled position. But we now have many of the answers. In fact we’ve developed solutions to the cost cutting and efficiency requirements in demand by the healthcare industry.

The bottom line is, no matter how the current healthcare debate turns out, we’ve created an efficient medical service company that will have value for the marketplace.

Shortly, we will formally announce this new marketing program called “EXpress Medical Services.” EMS is our total approach to packaging our Telemedicine products. The program will cover:

XR-EXpress – our FDA 510k cleared PACS (Picture Archiving and Communications System), which is being used for all of our Telemedicine activities.

TeleRad EXpress Service – our Teleradiology product that will continue to provide readings of CTs, X-Rays, MRIs, and Ultrasounds.

TeleCardio EXpress – our brand new Cardiology product that will handle Echocardiograms and EKGs as a Telemedicine product.

TeleClaims EXpress – our medical billing system for customers to be able to integrate their billing systems with XR-EXpress.

TeleQA – a radiology quality assurance program that is offered to companies either with TeleRad Express medical services or through a company’s own Telemedicine product.

TeleDispatch – a new product that offers registration services or electronic medical record information that will tie into billing programs.

XR-EXpress iMedcon module – that is specifically designed for neurologists to view CT scans from remote hospitals. Currently almost half of the hospitals or clinics have signed on to iMedcon in New Mexico. All major hospitals in Albuquerque use the iMedcon module for patient CT viewing and collaboration.

These products are integrated into our EXpress Medical Services (EMS).

This forms the basis of our marketing plan going forward. Our intent is to continue on track with moving from a little over a $1.6 million in 2008 to nearly $4 million in 2009. The growth for 2010 should also continue as we continue to improve EMS services in the marketplace.

A couple of events are taking place over the next several weeks. We celebrated our tenth anniversary on August 3, 2009 as a publicly traded company in good standing with the SEC. We have scheduled an anniversary celebration at this year’s Open House, on October 2^nd from 3 pm to 8 pm. All shareholders are invited to visit and discuss any company issues/questions. At our open house, we will introduce our Chief Medical Officer, Dr. Asif Anwar; our Chief of Cardiology Dr. Abinash Archeter, and our Chief of Quality Assurance, Dr. Robert Nekrich. The doctors will be available to answer questions on Telemedicine and their respective activities.

We will formally introduce the new marketing program on September 23-25 in Las Vegas at the National Association of Portable X-Ray Providers. It will be held at the Monte Carlo Hotel and Casino. On Thursday, September 24^th at 9:15 a.m. we will be giving a major talk on Radiology Quality Assurance. Nestor Pena, Director of Telerad Operations, will be the featured speaker.

On Friday, October 9^th, I will be discussing EMR (electronic medical records) at a symposium sponsored by the Lorman Group in Albuquerque.

I want to again express my warm thanks to all of you who have showed us so much support over the years. We remain committed to creating value for our shareholders. I hope to see many of you at our open house on October 2.

Dick Govatski

CEO

About New Mexico Software, Inc.

New Mexico Software, Inc. develops and provides medical IT services and solutions that enable improved and faster communication within the preventative, comprehensive and critical healthcare segments. New Mexico also provides software and hardware that streamlines administrative processes for a more efficient working environment. For more information, visit www.nmxc.net or www.nmxs.com, or contact Dick Govatski, president and CEO, at 505-255-1999 or ceo@nmxs.com.

An investment profile on New Mexico Software may be found at www.hawkassociates.com/profile/nm www.hawkassociates.com/profile/nmxc.cfm. For an online investor relations kit, visit www.hawkassoc www.hawkassociates.com or www.americanmicrocaps.com. For more investor-related questions, contact Frank Hawkins or Susan Zhou, Hawk Associates, at 305-451-1888 or New.Mexico.Software@ New.Mexico.Software@hawkassociates.com. To subscribe to future releases via e-mail alert, visit www.hawkassociates.com/about/alert/.

The foregoing press release contains forward-looking statements including statements regarding the company’s expectation of its future business. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the company’s control. Actual results could differ materially from these forward-looking statements.