About Cover-All Technologies Inc.

Cover-All Technologies Inc., since 1981, has been a leader in developing sophisticated software solutions for the property and casualty insurance industry -- first to deliver PC-based commercial insurance rating and policy issuance software. Currently, Cover-All is building on its reputation for quality insurance solutions, knowledgeable people and outstanding customer service by creating new and innovative insurance solutions that leverage the latest technologies and bring our customers outstanding capabilities and value.

With extensive insurance knowledge, experience and commitment to quality, Cover-All continues its tradition of developing technology solutions designed to revolutionize the way the property and casualty insurance business is conducted. Additional information is available online at www.cover-all.com.

Cover-All(R), My Insurance Center(TM) (MIC) and Insurance Policy Database(TM) (IPD) are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders.

SOURCE: Cover-All Technologies Inc.

Cover-All Technologies Inc. 
Ann Massey, 973-461-5190 
Chief Financial Officer 
amassey@cover-all.com 
or 
Investor: 
Hayden IR 
Brett Maas, 646-536-7331 
Principal 
brett@haydenir.com

Operational Highlights:

-- Year-to-Date revenue increased 5.2% to $5.8 million compared to $5.5 million for the same period in 2008. Second quarter revenue was $2.7 million, compared to $2.5 million for the same period in 2008, an increase of 9.1%.

-- Continuing revenue (maintenance and ASP revenue from contracts) for the first six months of 2009 was $3.5 million, up 18.6% compared to the $3.0 million in the prior-year period. Continuing revenue for the second quarter of 2009 was $1.8 million, up 16.9% from $1.5 million in the same period in 2008.

-- Professional services revenue for the first six months of 2009 was $2.0 million, up 17.9% compared to $1.7 million in the same period in 2008. Professional services revenue for the second quarter of 2009 was $891,000, up 7.4% compared to $829,000 for the same period in 2008.

-- Total expenses (cost of revenue and operating expenses) for the first six months of 2009 was $5.2 million, up from $4.7 million in the same period in 2008.

-- Net income for the six months ended June 30, 2009 was $629,000, or $0.03 per share, compared to $872,000, or $0.04 per share, in the same period of 2008. Net income for the three months ended June 30, 2009 was $194,000, or $0.01 per share, compared to $292,000, or $0.01 per share, in the same quarter of 2008.

-- The Company's balance sheet remains strong with stockholders' equity at $7.9 million as of June 30, 2009. The Company completed the second quarter of 2009 with $4.4 million in cash, $5.0 million in working capital and no debt.

John Roblin, Chairman of the Board of Directors and Chief Executive Officer of the Company, commented, "Cover-All continues to ramp its continuing, or recurring, revenue base, increasing our long-term revenue visibility and resulting in our tenth consecutive quarter of profitability. Simultaneously, we are utilizing our strong financial position and profitability to increase investments in research and development to broaden our product offering and ultimately expand the Company's earnings power. Our R&D initiatives have enabled us to launch our new Workers' Compensation product as part of our My Insurance Center(TM) (MIC) NexGen suite, as well as our Massachusetts Commercial Automobile Rating & Policy Issuance product. Our Workers' Compensation product is already in production at one major carrier and went live with a second customer in July, 2009.. Our Massachusetts Commercial Automobile Rating & Policy Issuance product was launched after developing and testing this product for an existing customer. These two products are a clear example of Cover-All's ability to respond to our customers' business needs with proven technology, and we expect to announce additional product launches during the second half of the year to further augment our MIC platform."

Year-to-Date Financial Results

Total revenues for the six months ended June 30, 2009 were $5.8 million, compared to $5.5 million for the same period in 2008, an increase of 5.2%. License revenue was $306,000, compared to $869,000 for the same period in 2008. In aggregate, maintenance and ASP revenue, which together represent continuing revenue, was $3.5 million for the first six months of 2009, up 18.6% from $3.0 million in the same period in 2008. Professional services revenue for the first six months of 2009 was $2.0 million, up 17.9% compared to $1.7 million for the same period in 2008.

Total expenses (cost of revenue and operating expenses) for the first six months of 2009 increased 11.9% to $5.2 million from $4.7 million for the same period in 2008. Net income for the six months ended June 30, 2009 was $629,000, or $0.03 per share (based on 24.9 million weighted average diluted shares), compared to $872,000, or $0.04 per share (based on 24.0 million weighted average diluted shares), in the same period of 2008.

Mr. Roblin continued, "We have strategically increased our investment in sales and marketing, with the goal of expanding Cover-All's presence in the marketplace. Already, we have received a positive review by Celent, a leading independent analyst firm. This review, in the report 'Policy Administration Systems for Commercial Lines P/C Insurers US 2009,' is widely circulated in the insurance industry. In Celent's analysis of our technology, breadth of functionality, and size of our customer base, no other vendor ranked as high when considering these three factors together. This report has already been well-received in the marketplace and helps to provide Cover-All even greater creditability with new customers."

Second Quarter Financial Results

Total revenues for the three months ended June 30, 2009 were $2.7 million, compared to $2.5 million for the same period in 2008, an increase of 9.1%. License revenue was $83,000, compared to $171,000 for the same period in 2008. In aggregate, maintenance and ASP revenue, which together represent continuing revenue, was $1.8 million for the second quarter of 2009, up 16.9% from $1.5 million in the same period in 2008. Professional services revenue for the second quarter of 2009 was $891,000, up 7.4% compared to $829,000 for the same period in 2008.

Total expenses (cost of revenue and operating expenses) for the three months ended June 30, 2009 quarter increased 15.3% to $2.6 million from $2.2 million. Net income for the three months ended June 30, 2009 was $194,000, or $0.01 per share (based on 25.0 million weighted average diluted shares), compared to $292,000, or $0.01 per share (based on 24.1 million weighted average diluted shares), in the same quarter of 2008.

Stockholders' equity was $7.9 million as of June 30, 2009 compared to $7.8 million as of December 31, 2008. Total assets increased to $10.4 million as of June 30, 2009 compared to $11.0 million as of December 31, 2008. As of June 30, 2009, the Company had $4.4 million in cash, $5.0 million in working capital and no debt.

Conference Call Information

Management will conduct a live teleconference to discuss its second quarter 2009 financial results at 4:30 p.m. ET on Thursday, August 13, 2009. Anyone interested in participating should call 1-877-941-1465 if calling from the United States, or 1-480-629-9678 if dialing internationally. A replay will be available until August 20, 2009, which can be accessed by dialing 1-800-406-7325 within the United States and 1-303-590-3030 if dialing internationally. Please use passcode 4134625 to access the replay. In addition, the call will be webcast and will be available on the Company's website at www.cover-all.com or by visiting http://viavid.net/dce.aspx?sid=0000689B.

About Cover-All Technologies Inc.

Cover-All Technologies Inc., since 1981, has been a leader in developing sophisticated software solutions for the property and casualty insurance industry - first to deliver PC-based commercial insurance rating and policy issuance software. Currently, Cover-All is building on its reputation for quality insurance solutions, knowledgeable people and outstanding customer service by creating new and innovative insurance solutions that leverage the latest technologies and bring our customers outstanding capabilities and value.

With our extensive insurance knowledge, our experience and our commitment to quality, Cover-All continues its tradition of developing technology solutions designed to revolutionize the way the property and casualty insurance business is conducted.

Additional information is available online at www.cover-all.com.

Cover-All(R), My Insurance Center(TM) (MIC) and Insurance Policy Database(TM) (IPD) are trademarks or registered trademarks of Cover-All Technologies Inc. All other company and product names mentioned are trademarks or registered trademarks of their respective holders.

Forward-looking Statements

Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks which may cause the Company's actual results in future periods to differ materially from expected results. Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful addition of personnel in the marketing and technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company's control. Those and other risks are described in the Company's filings with the Securities and Exchange Commission ("SEC") over the last 12 months, including but not limited to the Company's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the SEC on March 30, 2009, copies of which are available from the SEC or may be obtained upon request from the Company.

COVER-ALL TECHNOLOGIES INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
                                                             June 30,               December 31,
                                                             2009                   2008
                                                             (Unaudited)
Assets:
Current Assets:
Cash and Cash Equivalents                                    $   4,392,761          $    4,686,470
Accounts Receivable (Less Allowance for Doubtful Accounts
of $25,000 in 2009 and 2008)                                     1,699,429               2,055,815
Prepaid Expenses                                                 467,097                 334,804
Deferred Tax Asset                                               840,000                 840,000
Total Current Assets                                             7,399,287               7,917,089
Property and Equipment - At Cost:
Furniture, Fixtures and Equipment                                623,547                 623,547
Less: Accumulated Depreciation                                   (338,851    )           (300,164    )
Property and Equipment - Net                                     284,696                 323,383
Capitalized Software (Less Accumulated Amortization of
$11,536,419 and $11,049,157, respectively)                       1,778,142               1,848,111
Deferred Tax Asset                                               840,000                 840,000
Other Assets                                                     110,151                 110,151
Total Assets                                                 $   10,412,276         $    11,038,734
Liabilities and Stockholders' Equity:
Current Liabilities:
Accounts Payable                                             $   318,738            $    227,007
Accrued Expenses Payable                                         331,605                 1,061,065
Deferred Charges                                                 22,503                  22,503
Unearned Revenue                                                 1,750,002               1,800,485
Total Current Liabilities                                        2,422,848               3,111,060
Long-Term Liabilities:
Deferred Charges                                                 112,592                 123,844
Total Long-Term Liabilities                                      112,592                 123,844
Total Liabilities                                                2,535,440               3,234,904
Commitments and Contingencies                                    --                      --
Stockholders' Equity:
Common Stock, $.01 Par Value, Authorized 75,000,000
Shares; 24,786,656 and 24,690,227 Shares Issued and
24,584,786 and 24,488,357 Shares Outstanding,
Respectively                                                     247,866                 246,902
Paid-in Capital                                                  29,367,295              29,185,646
Accumulated Deficit                                              (21,573,431 )           (21,463,824 )
Treasury Stock - At Cost - 201,870 Shares                        (164,894    )           (164,894    )
Total Stockholders' Equity                                       7,876,836               7,803,830
Total Liabilities and Stockholders' Equity                   $   10,412,276         $    11,038,734

COVER-ALL TECHNOLOGIES INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATION
                                         Three months ended                        Six months ended
                                         June 30,                                  June 30,
                                         2009                2008                  2009                2008
Revenues:                                (Unaudited)         (Unaudited)           (Unaudited)         (Unaudited)
Licenses                                 $     83,415        $   170,899           $     306,393       $   869,399
Maintenance                                    1,252,475         958,672                 2,497,479         1,947,515
Professional Services                          890,619           828,886                 1,986,567         1,684,316
Applications Service Provider ("ASP")
Services                                       512,964           551,959                 1,003,688         1,005,594
Total Revenues                                 2,739,473         2,510,416               5,794,127         5,506,824
Cost of Revenues:
Licenses                                       232,990           258,386                 492,320           536,881
Maintenance                                    624,155           620,302                 1,196,555         1,074,887
Professional Services                          412,171           359,581                 938,522           741,323
ASP Services                                   379,782           244,791                 772,633           552,967
Total Cost of Revenues                         1,649,098         1,483,060               3,400,030         2,906,058
Direct Margin                                  1,090,375         1,027,356               2,394,097         2,600,766
Operating Expenses:
Sales and Marketing                            222,421           156,998                 436,523           391,325
General and Administrative                     467,145           417,161                 929,551           973,010
Research and Development                       226,010           166,583                 438,414           382,211
Total Operating Expenses                       915,576           740,742                 1,804,488         1,746,546
Operating Income                               174,799           286,614                 589,609           854,220
Other Income (Expense):
Interest Expense                               --                (4,531     )            --                (9,063     )
Interest Expense - Related Party               --                (1,308     )            --                (2,616     )
Interest Income                                1,895             3,041                   5,867             3,043
Other Income                                   17,181            8,419                   33,300            26,609
Total Other Income (Expense)                   19,076            5,621                   39,167            17,973
Income Before Income Taxes                     193,875           292,235                 628,776           872,193
Income Taxes                                   --                --                      --                --
Net Income                               $     193,875       $   292,235           $     628,776       $   872,193
Basic Earnings Per Common Share          $     0.01          $   0.01              $     0.03          $   0.04
Diluted Earnings Per Common Share        $     0.01          $   0.01              $     0.03          $   0.04
Weighted Average Number of Common
Shares Outstanding for Basic
Earnings Per Common Share                      24,586,000        23,520,000              24,565,000        23,441,000
Weighted Average Number of Common
Shares Outstanding for Diluted
Earnings Per Common Share                      25,010,000        24,085,000              24,915,000        24,043,000

SOURCE: Cover-All Technologies Inc.

For information on Cover-All: 
Ann Massey, 973-461-5190 
Chief Financial Officer 
amassey@cover-all.com 
or 
Investor: 
Hayden IR 
Brett Maas, 646-536-7331 
Principal 
brett@haydenir.com