CAMINOSOFT ANNOUNCES FINANCIAL RESULTS, ADDITIONAL FINANCING AND CHANGES TO THE BOARD OF DIRECTORS

The Three-Month Periods Ended June 30, 2003 and June 30, 2002.

Sales during the current quarter increased by approximately $177,700 compared to the quarter ended June 30, 2002 as a result of the acquisition and distribution of the Legato high availability products for NetWare. Deferred revenue for sales of annual service contracts also increased as compared to the quarter ended June 30, 2002 by approximately $142,000 due to the sale of service contracts for both the high availability and core HSM installations. The service revenue will be taken into income ratably over the terms of the service contracts. During the quarter ended June 30, 2003, the Company continued to concentrate on the development of a sales and technical infrastructure to support the sales forces of O.E.M. partners and integrators who distribute the Company’s solutions. The sales process, goals and objectives have been modified to include partner sales and technical support, sales and technical training, and an inside sales department to support external sales teams. Sales for the quarter ended June 30, 2003 exceeded sales for the Company’s entire fiscal year ended September 30, 2002.

Operating loss for the current three-month period decreased by approximately $49,600 compared to the three months ended June 30, 2002. This decrease is a result of the Company’s current sales increase.

Nine-Month Periods Ended June 30, 2003 and June 30, 2002.

Sales for the nine month fiscal period June 30, 2003 increased by approximately $387,000 compared to the prior nine month period.

The distribution channel for the high availability products has added a significant number of distribution partners to sell the Company’s HSM solutions. The Company is currently training these partners to sell and promote the Company’s other storage management products. The Company believes this will help increase sales and integration of the Company’s HSM technology for NetWare and Windows 2000 during the second half of the current calendar year. Along with an increase in recognized revenue during the current nine-month period, there has been an increase of approximately $142,000 in deferred revenues that will be realized over the next twelve-month period. The number of clients using the Company’s solutions has increased more than tenfold, enhancing the ability to sell upgraded and future products and solutions into a much larger base of users of the Company’s products.

Operating loss for the nine-month period ended June 30, 2003 decreased by approximately $228,000 compared to the nine months ended June 30, 2002. The decrease was due to the increase in revenues during the current period relating to the acquisition of the high availability products for NetWare.

Stephen Crosson, Chief Executive Officer of CaminoSoft, stated, “The addition of the new high availability products positioned our company in two of the fastest growing areas in the software business, High Availability and Data Storage Management. We believe the increases in sales we have seen in the recent quarter will continue to accelerate.”

Mr. Crosson also announced an additional $750,000 financing through BFSUS Special Opportunities Trust PLC, represented by Renaissance Capital Group. The financing is in the form of a convertible note, similar to a financing that the company arranged through Renaissance Capital Group in December 2002.

The company also announced that Walter Kornbluh has retired as Chairman of the Board, but will continue to serve as a Director and consultant to the company. Steven M. Spector, a current board member and member of both the Audit and Compensation committees of the board, was elected to the position of Chairman of the Board. Stephen Crosson, Chief Executive Officer of the Company, was also elected as a Director of the company.

About CaminoSoft Corp.

CaminoSoft Corporation is a creator of operating software solutions designed to store and manage the vast quantities of critical data created in a wide range of businesses and industries. The Company offers solutions that enable multi-tiered hierarchical storage management and high availability on computer server-based networks. CaminoSoft's Intelligent Capacity Management™ products provide increased efficiencies for an organization's data storage and network infrastructure and are available for Novell NetWare and Microsoft Windows 2000 operating systems.

This release may contain forward-looking statements that reflect the management’s current views of future events and operations. These forward-looking statements are based on assumptions and external factors, including assumptions relating to regulatory action, capital requirements and competing products. Any changes in such assumptions or external factors could produce significantly different results.

Contact Information:
Richard Krueger
600 Hampshire Road, Suite 105
Westlake Village, CA 91361 
Phone:805/370-3100 ext. 242
Fax: 805/370-3200
Email: richard.krueger@caminosoft.com