Clancy's Judgment Against Basher Upheld

DENVER--July 26, 2004--Clancy Systems International, Inc. (OTCBB:CLSI), a leading developer of parking enforcement solutions, was notified on Friday that it's judgment against a basher who had harassed the company for almost three years at various chat room sites, including Raging Bull, was upheld by the Massachusetts Supreme Court. The Company intends to pursue the judgment award.

In a case originally filed with the Superior Court of the Trial Court of the Commonwealth of Massachusetts in September of 2000, the Company sought the identities of John Does 1-10 and filed a claim for damages. This was done as a result of an ongoing barrage of false, defamatory and slanderous remarks about the Company, its officers, its employees and shareholders that were made on Raging Bull and other chat room sites. The persons who perpetrated these falsehoods did so by posting their remarks under alias identities. Once the true identities were disclosed, the individuals were notified to cease and desist their actions. One individual continued his activities which included profanities and death threats. As the postings by this individual did not cease, the Company pursued the case.

The Company was awarded a judgment against the defendant on October 31, 2001. The defendant then began a process of filing appeals through the Massachusetts Court System. The final appeal to the Massachusetts Supreme Court was filed in June 2004.

Throughout this lengthy process, the defendant never provided proof that he at any time owned shares of the Company. He never contacted the Company directly to verify information. It appears that this was a recreational activity. There were over 5,000 posts during the period, and on some days the posts were continual for 10 to 12 hours.

While the Company feels the verdict is just, Company officials expressed sadness that they were forced to take this matter to the courts in the first place. "It has been a terrible ordeal for the Company and its shareholders. We have spent a great deal of time on this matter and wasted valuable Company financial resources. While we understand that a forum like Raging Bull offers an opportunity for favorable and unfavorable comments about publicly held companies, this individual violated all terms of service and went beyond the acceptable rules for posting," stated L. Wolfson, a Company spokesperson.

This press release contains projections and other forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These projections and statements reflect the Company's current views with respect to future events and financial performance. No assurance can be given, however, that these events will occur or that these projections will be achieved and actual results could differ materially from those projected as a result of certain factors. A discussion of these factors is included in the Company's periodic reports filed with the Securities and Exchange Commission.