1MAGE, SupraLife Agree to Terminate Merger Agreement.

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Oct. 16, 1998--1MAGE Software Inc. (OTC BB:ISOL) announced today that the company and SupraLife International have agreed to terminate the merger agreement signed by both parties in July 1998.

In light of the recent delisting of 1MAGE's common stock from the Nasdaq Small Cap Market and the generally negative reaction of 1MAGE's shareholders to the proposed merger, particularly after the delisting, the parties agreed that it was in their mutual interests to terminate the agreement.

1MAGE announced that it was canceling the special meeting of shareholders scheduled for Oct. 30 but that 1MAGE shareholders were encouraged to contact the company's officers with any questions they have concerning the abandoned transaction or the Nasdaq delisting.

David DeYoung, 1MAGE's president, stated, "Much of the impetus for this transaction came from our desire to preserve shareholder value by keeping our 17-year Nasdaq listing and SupraLife's desire to become part of a Nasdaq-traded company." He added, "The 1MAGE board of directors concluded that, after the Nasdaq delisting, the risks posed by giving up effective control of the company to SupraLife, coupled with the substantial dilutive effect of the transaction on our existing shareholders, outweighed the potential gains from the merger. DeYoung said that the company's core software business remained strong notwithstanding the attention paid to the SupraLife transaction over the past several months.

Statements expressing the beliefs and expectations of 1MAGE management regarding future performance are forward-looking and involve risks and uncertainties, including, but not limited to: market demand for products, the overall market demand for imaging software, maintenance of adequate cash flow to sustain operations, quarterly fluctuations in financial results, and other risk factors identified from time to time in 1MAGE's reports filed with the Securities and Exchange Commission, copies of which may be obtained at www.sec.gov or by written request submitted to 1MAGE.

1MAGE(R) is the leading provider of electronic document imaging systems to end users of Ardent Software Inc. 1MAGE(R) is marketed through a direct sales force and through an international network of Value Added Resellers (VARs). For additional information, contact 1MAGE at 303/773-1424 or visit its website at www.1mage.com.