1MAGE Reports Third Quarter Results With a 60% Increase in Revenue.

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Oct. 30, 1998--1MAGE Software, Inc. (OTC BB:ISOL), a provider of document imaging software, today announced its third quarter results.

Revenue for the third quarter of 1998 increased 60% to $621,368, compared to $388,610 for the third quarter of 1997. The company reported third quarter operating income of $56,436 compared to a loss from operations in 1997 of ($162,138). The company, however, reported a net loss for the third quarter of 1998 of ($49,176) or ($.02) per share due to merger-related charges of $100,631. This compares to a net loss for the third quarter of 1997 of ($168,278) or ($.08) per share.

David DeYoung, president, said, "The company expended a great deal of resources over the past two years attempting to meet the new Nasdaq listing requirements, which were effective in early 1998. These efforts included the recently terminated merger agreement with SupraLife. Unfortunately, notwithstanding our efforts, we were recently delisted by Nasdaq. Fortunately, the company continued to focus on its core business, and those efforts are beginning to show results."

DeYoung noted increased quarterly revenue from system sales (up 169%) and services (up 2%) from a year ago. Revenue of $1,447,108 for the nine months ended Sept. 30, 1998 was lower than $1,562,165 for the year earlier, primarily due to a substantial decrease in hardware revenue for the first two quarters of the year.

The recent upturn in revenue is primarily attributable to the market acceptance of our new release of 1MAGE(R) 5.5 and, for our Windows 95 clients, WinClient(R) and WinQ(R). In the third quarter, we began shipments of these exciting products to The Reynolds and Reynolds Company (NYSE:REY), our largest business partner ( www.reyrey.com ), which has made electronic document management an integral part of ERA2(R), their industry-leading automotive dealership software.

DeYoung added, "Many businesses in our target markets are just beginning to embrace electronic document imaging technology and its business benefits. As the leader in providing document imaging solutions to this market, we are focusing our resources and efforts to capitalize on these new opportunities. We have already received orders from new customers in the transportation, medical and oil and gas industries. Watch us on the internet at www.1mage.com." -0-

                           Third Quarter Ended   Nine Months Ended
                               Sept. 30,            Sept. 30,
                            1998       1997       1998      1997

Revenue                 $ 621,368  $ 388,610  $1,447,108 $1,562,165
Operating Income           56,436   (162,138)    (73,370)  (219,135)
Merger-related charge    (100,631)         0    (100,631)         0
Net Loss                  (49,176)  (168,278)   (193,984)  (233,104)
EPS                        $ (.02) $    (.08) $     (.09)$     (.11)
Wtd. Avg. Shares        2,202,548  2,149,400   2,162,558  2,148,178

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

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 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.