News Story

FOR IMMEDIATE RELEASE

VillageEDOCS Reports Record 3rd Quarter And Nine Months Financial Results

Revenue for First Nine Months of 2007 up 30% Over Year Ago

SANTA ANA, CA, Nov. 19, 2007—VillageEDOCS, Inc. (OTCBB:VEDO), a Software as a Service company providing proprietary on-demand outsource business solutions, today announced financial results for the third quarter and nine months ended September 30, 2007.

“VillageEDOCS is making great strides toward the integration and consolidation of each of our recently acquired business units in our continuing effort to drive efficiencies throughout our group of companies,” said Mason Conner, Chief Executive Officer of VillageEDOCS, Inc. “At the same time, we are continuing to devote resources in support of anticipated increased sales activities and to maximize the cross-selling opportunities that each of our business units has to offer.”

Consolidated net revenue for the third quarter ended September 30, 2007 was a record $4,037,055, a 4% increase over net revenue for the prior year three month period of $3,885,644. Net loss for the three months was $43,269, or $0.00 per share, including the effect of $200,923 of stock option vesting expense. This compares with a net loss of $35,436, or $0.00 per share, after the effect of $116,077 of stock option vesting expense for the 2006 quarter. Diluted weighted average shares outstanding increased to 151.2 million shares from 146.9 million shares, a year ago. Adjusted EBITDA (as defined below) of $348,544 for the current quarter compares with adjusted EBITDA of $412,540 in the prior year quarter, and includes non-cash depreciation and amortization charges and non-cash stock option vesting charges totaling $443,983 (2006: $419,694).

For the nine months ended September 30, 2007, VillageEDOCS had record consolidated net revenue of $11,670,190, a 30% increase over revenue of $8,987,575 for the first nine months of 2006. The current nine month period includes a full nine months of revenue of the GSI business unit, acquired in May 2006, versus only five months of revenue from GSI in the 2006 nine month period. Net loss for the nine months was $1,023,106, or $0.01 per share, including the effect of $655,409, or $0.004 per share, of stock option vesting expense, as well as $120,000 in legal and consulting fees of a planned acquisition which the Company elected to terminate in the second quarter prior to entering into a definitive agreement. This compares with a net loss of $665,518, or $0.01 per share, after the effect of $360,668, or $0.003 per share, of stock option vesting expense for the nine months of 2006. Diluted weighted average shares outstanding increased to 149.4 million shares from 127.2 million shares, in the year ago nine month period. Adjusted EBITDA (as defined below) of $434,316 for the nine months of 2007 compares with adjusted EBITDA of $317,270 in the prior year nine month period, and includes non- cash depreciation and amortization charges and non-cash stock option vesting charges totaling $1,371,074 (2006: $876,874).

Although operating expenses increased during the first nine months of 2007 compared to the same period a year ago, the most significant factor in the overall increase was the addition of $1,388,738 in operating expenses of GSI (nine months in the 2007 period compared to five months in the 2006 period). Consolidated operating expenses during the 2007 period were 70% of sales compared to 72% of sales in the 2006 period.

"We remain confident in attaining our earlier stated goal of revenue in 2007 rising more than 20% over 2006 to approximately $16 million, with adjusted EBITDA (as defined below) rising to at least $800,000, as we anticipate the fourth quarter to be a seasonally strong period with our recurring government accounting and billing services clients entering the annual property tax season,” Mr. Conner said.

Mr. Conner noted that the Company’s goals for 2007 and beyond do not include the potential $3.5 million revenue contribution from the previously announced pending acquisition of Questys Solutions and, while continuing to experience strong organic growth, the Company is seeking to acquire other synergistic companies within the fast growing Software as a Service (SaaS) sector to further broaden its product offerings.

About VillageEDOCS

VillageEDOCS, through its MessageVision subsidiary, is a leading provider of comprehensive business information delivery services and products for organizations with mission-critical needs, including major corporations, government agencies and non-profit organizations.  Through its Tailored Business Systems subsidiary, VillageEDOCS provides accounting and billing solutions for county and local governments.  Through its Resolutions subsidiary, VillageEDOCS provides products for document management, document imaging, electronic forms, document archiving, and e-mail archiving.  Through its GoSolutions subsidiary, VillageEDOCS provides enhanced voice and data delivery services.  For further information, visit our website at www.villageedocs.com.

Non-GAAP Financial Measure:  Adjusted EBITDA

We believe “Adjusted EBITDA”, which is a non-GAAP financial measure, provides useful information to investors and management by excluding certain income, expenses, and gains and losses that may not be indicative of our core operating and financial reports. We believe that “Adjusted EBITDA” is a useful performance measure because certain items included in the calculation of net income (loss) may either mask or exaggerate trends in our ongoing operating performance. We use “Adjusted EBITDA” on an ongoing basis to track and assess our financial performance. You, however, should not consider “Adjusted EBITDA” in isolation or as a substitute for net income (loss) or any other measure for determining our operating performance that is calculated in accordance with accounting principals generally accepted in the United States of America (“U.S. GAAP,” “GAAP”). “Adjusted EBITDA” is not necessarily comparable to similarly titled measures employed by other companies. We expect future Adjusted EBITDA to vary significantly from anticipated future net income (loss) because depreciation, amortization, interest, tax, and stock option vesting expenses during 2007 and 2008 are expected to be at least as material as they were during 2006.

Cautionary Statement Regarding Forward-Looking Information

All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements made in this press release, including, without limitation, those relating to our belief about the benefits the Company has derived, or may derive, from pursuing its acquisition strategy or from acquiring GoSolutions or from new management personnel or consultants, and our expectations regarding future operating results, including such for the remainder of 2007 or 2008, are forward-looking statements. These statements, and other forward looking statements in this press release, represent the Company’s plans, intentions, expectations and belief and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected or expressed herein. These include, without limitation, risks associated with acquisitions, including Questys Solutions, such as the inability to complete a transaction or to assimilate and integrate new operations and retain key personnel, uncertainties in the market, competition, legal, regulatory initiatives, success of marketing efforts, availability, terms and deployment of capital, personnel risks, and other risks detailed in the Company’s SEC reports, of which many are beyond the control of the Company. Trading in the Company's common stock is limited, and marketability of the stock is restricted by penny stock regulations and the fact that our common stock is traded on the OTCBB. The Company does not presently qualify, and may never qualify, to be listed or quoted on any exchange or other market. The Company assumes no obligation to update or alter the information in this press release. Investors are cautioned not to put undue reliance on any forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 21E of the Exchange Act.