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Sayville, Long Island, August, 2007 - Brainworks Software, the leading provider of newspaper advertising and circulation systems for North America has announced the signing of a contract for a eleven user classified advertising system for The Observer-Reporter. The Observer-Reporter will implement a new Brainworks classified system that will compliment their existing ROP/Display system to create a fully integrated advertising system including classified, retail and preprint advertising as well as web ad order entry, web publishing, client web access, data mining, sales force automation, integrated marketing, sales budgeting and interfaces to numerous third party systems.

Brainworks laid the foundation of the integrated advertising system at Observer-Reporter in the Spring of 2000 with the installation of the Accounts Receivable and ROP/Display system. Following that installation CFO David Lyle said, “We have had a positive experience with the Brainworks software and personnel. The conversion to Brainworks enabled us to gain substantial efficiencies in our internal processes. Data Mining has provided us the tools we need to accurately track and analyze our sales results. We have had no issues with the accounting system, which has excellent credit features. The technical support from the Brainworks crew has been first rate.” Just prior to the selection of the Brainworks classified system Lyle added, “We are not yet using Brainworks’ classified advertising system. We have, however, been investigating classified systems for some time, and we are very impressed with the Brainworks product. Brainworks is certainly the front-runner in our search. Our Classified Manager has been extremely impressed with the sales tools in the Brainworks classified system.”

John Barry, President of Brainworks Software added; “The Observer-Reporter is an exciting, energized organization. Led by a strong team of dedicated managers they are transforming their organization through innovation and an intense focus. They recognized the importance of choosing vendors that matched their creativity and drive. For this reason, we at Brainworks are particularly pleased to have been selected for such an important role within the Observer-Reporter - helping to drive advertising revenues upward.”

Matt Miller, Advertising Director for The Observer-Reporter summed it up best when he said, “As the advertising director, I look at the purchase of a new advertising system as a fundamental necessity to the success of our newspapers over the next ten plus years. I take it extremely seriously, as I know that the livelihood of over 300 families (including mine) relies on a successful implementation and partnership. Our selection process was rigorous. We started by taking a look at the top ten vendors in the industry. We narrowed the field to two based on product demos and compatibility with our company.

In the end, Brainworks was our choice. Their classified and A/R systems are strong and provide us with the flexibility for future growth. Reporting in A/R allows us to drill down to the smallest metric. We see great up-sell potential with Classified and are extremely excited to roll it out. The online order entry system integrates neatly with classified and we felt it was second to none.

The biggest reason we chose Brainworks is technology. They currently offer Palm order entry, sales force automation and the sales funnel. These tools will provide our sales consultants with more time to focus on job one, while allowing our management team the ability to measure everything. In addition, they are extremely open to customer driven innovation. We have lots of ideas about how to make the software better and Brainworks is all ears.”

Founded in 1808, in the basement of what is now the Union Grill, The Observer-Reporter continues to serve Washington and Greene counties in Pennsylvania. The Observer Publishing Company was formed in 1902 when the paper was bought by John L. Stewart and he joined forces with E.F. Acheson.

Today, in addition to its daily and weekly newspapers and their related Web sites, the company also publishes monthly magazines and other special-interest publications.

The Observer Publishing Co. is one of the largest employers in Washington County. With offices in Washington, McMurray and Waynesburg, the company employs 250 workers in its 24-hour operation. Its circulation reaches readers in Washington, Greene and southern Allegheny counties.

Brainworks software has been installed at over 800 North American newspapers over the past 25 years. Products include fully integrated classified and display advertising, circulation, billing, accounts receivable, contract and credit management, classified pagination, ROP ad layout, editorial and editorial pagination, and a state-of-the art Sales Force Automation system supporting Web and Palm OS platforms.

Brainworks customers include individual newspapers as well as publishing companies, which incorporate multiple products and divisions into a single database. Brainworks Software maintains offices in Sayville, NY and Wichita, KS.