Company News

FOR IMMEDIATE RELEASE

VillageEDOCS Obtains New Debt Financing - Significant Shareholder Displays Confidence in Company - Company Maintains Cash Position

SANTA ANA, CA, August 6, 2009 — VillageEDOCS, Inc. (OCTBB: VEDO), a Software as a Service company, today announced that it obtained $435,000 in debt financing from a large shareholder in consideration for an unsecured promissory note (the “Note”).

“Our shareholder’s action demonstrates the continued commitment and support that they and the market have for our successes to date and the direction that we are going. The SaaS market has huge growth potential and VillageEDOCS continues to penetrate that market,” stated Mason Conner, President & Chief Executive Officer of VillageEDOCS. “In an era where financing can be difficult for many companies to obtain and where maintaining solid cash position is invaluable, our Company is pleased to be able to utilize our cash to continue our focus on growth. We continue to cross-sell our products and obtain new customers. Our MessageVision Platform provides numerous SaaS product suites to fulfill the needs, flexibility and budget requirements of our customers. ”

The term of the Note is twelve (12) months, with monthly installments of principal and interest commencing on July 31, 2009 at a per annum interest rate equal to ten percent (10%). VillageEDOCS used the proceeds of the Note to retire a line of credit with a financial institution, as well as pay the August 1, 2009 installment in connection with the purchase of its Questys Solutions subsidiary.

About VillageEDOCS, Inc.
VillageEDOCS (VEDO) provides the MessageVision Platform (MVP). The MessageVision Platform is a SaaS offering that ships business information electronically and manages it by capturing, forming and delivering information using business process management and communication. MVP is a combination of unified communications and business process management solutions blended into a single, unified, scalable platform; eliminating the need for capital expenditures, operational costs and broad technology risks. MVP provides a single source for a wide range of business information management and communication applications on a pay-as-you-go financial model. For further information on VillageEDOCS, visit our website at www.villageedocs.com.

Forward-Looking Statements
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company's control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include the risk factors discussed in the Company’s filings with the Securities and Exchange Commission. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forwardlooking statement contained herein (or elsewhere) to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

Contact Information:

Aubrye Harris-Foote Director, Investor Relations VillageEDOCS 714-368-8754 aharris@villageedocs.com