The Company’s net income of $2,808,000 or $0.21 per share for the quarter

ending March 31, 2001, represents a 13.7 percent increase over the fourth

quarter 2000 net income of $2,468,000 or $0.19 per share and is a significant

improvement over a loss of $1,615,000 or $0.13 per share for the first quarter

of 2000.

Pre-tax net income grew at an even more impressive rate of 44.2 percent

compared to the fourth quarter of 2000. The most recent quarter reflects an

income tax expense of $789,000 versus an income tax expense of $27,000 in the

fourth quarter of 2000. Pre-tax net income was $3,597,000 for the first

quarter of 2001, compared to $2,495,000 for the fourth quarter of 2000.

Revenues rose 68.5 percent to $34.6 million for the first quarter of 2001,

compared to $20.5 million in the year ago first quarter. This compares to

revenues of $34.8 million in the fourth quarter of 2000.

The Company’s increased profitability is a result of the continuing shift

in revenue mix toward higher margin software development & maintenance and

service & consulting revenues as a percentage of total revenues. In the first

quarter of 2001, the Company’s lower margin telecommunication revenues

represented 26 percent of total revenues, compared to 61 percent for the first

quarter of 2000. The Company was also able to reduce its selling general and

administrative expense to $5.5 million, or 15.9 percent of total revenues in

the first quarter of 2001, compared to $6.0 million or 17.4 percent of total

revenues in the fourth quarter of 2000.

The 2001 first quarter results reflect Micro General’s continuing

progress toward solidifying the Company’s position as the leading provider of

software systems and services to the real estate title and escrow markets,

said John Snedegar, President and CEO of Micro General. The completion of

our Net Global Solutions (NGS) software system and its deployment to over

1,100 Fidelity National Financial Offices over the next several

months mark tremendous milestones for our Company. These milestones set the

stage for significant revenue growth over the next several years as we offer

NGS and other applications to the independent title agent and other new

markets.

Micro General’s progression from a loss of $7.1 million in 1999, to

profits of $2.0 million in 2000, and $2.8 million in just the first quarter of

2001 has been a tremendous experience for all Micro General employees, said

Dale Christensen, the Company’s chief financial officer. We hope to

replicate the 2001 first quarter results in each of the three remaining

quarters this year, and then utilize the NGS software system as our catalyst

to even greater revenues and profitability over the coming years.

SOURCE: COMPANY PRESS RELEASE