American Software : Form 8937 Attachment 1 With Respect to Return of Capital Distributions

AMERICAN SOFTWARE, INC.

FORM 8937

ATTACHMENT 1

WITH RESPECT TO RETURN OF CAPITAL DISTRIBUTIONS

Part II, Box 14

American Software, Inc. declared and paid cash dividends to shareholders of record on the dates shown below. Each of these dividends constituted a return of capital for U.S. Federal Income Tax purposes.

Nondividend distributions made to holders of American Software, Inc. Common Stock (Ticker Symbol: AMSWA,

CUSIP: 029683109) were as follows:

Record Date	Payable Date	Distribution Rate per	Return of Capital % of
		Share	Distribution
02/07/20	02/21/20	$0.11	89.6227%
05/08/20	05/22/20	$0.11	30.0275%
08/14/20	08/28/20	$0.11	55.7303%
11/04/20	12/04/20	$0.11	25.4094%

Part II, Box 15

Each shareholder that received a dividend with respect to a share held on the Record Date must reduce its tax basis in that share by the percentage reflected of the amount of the dividend recorded that was a return of capital. To the extent that the dividends received exceed a shareholder's tax basis in the share, the excess will constitute a taxable gain. Shareholders should consult their tax advisors with respect to the U.S. Federal tax treatment of any such gain as the tax treatment of the gain will depend on the shareholder's individual tax circumstances.

Part II, Box 16

Please see Part II, Box 15 above for a general description of a shareholder's change in basis calculation. The amount of the basis reduction described will be measured by the amount of cash distributions received.

Part II, Box 17

Tax consequences are determined under Sections 301(c) and 1001 of the Code.

Part II, Box 18

No tax loss will arise from the receipt of these cash distributions.

Part II, Box 19

Adjustments to the tax basis of stock (and of any taxable gain) resulting from these cash distributions are reportable in the tax period in which each distribution was received. For calendar year taxpayers, the reportable tax year for the aggregate distributions received is 2020.

Individual tax consequences may vary. Shareholders are urged to consult their own tax advisors. The information contained herein does not constitute tax advice. It is not intended or written to be used, and cannot be used, for the purpose of avoiding tax penalties.