1mage Installs First Fully Integrated Construction Business and Document Management System; Schlouch Blends 1MAGE and WinX From Ferrell Companies.

Business Editors/High-Tech Writers

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Nov. 19, 2002

1mage Software Inc. (OTCBB:ISOL) announced the installation of its integrated document management system for construction companies.

Schlouch Incorporated of Blandon, Penn., has brought the 1MAGE document imaging suite of products into service in a seamless integration with its existing Ferrell Companies accounting and project management software for its accounting and field management personnel. The 1MAGE document imaging and management applications tailored for Schlouch include:

-- 1SUITE, which permits field personnel to connect with 1MAGE

-- 1SCAN, the 1MAGE scanning utility

-- 1API, application programming interface that handles the basic imaging function

-- 1API/Workflow, which automates workflow between 1MAGE and WinX

-- 1FORM for online forms creation

"What separated the Ferrell-1mage solution from other products we looked at is the tight integration of the accounting and imaging applications," said Richard King, CFO of Schlouch. "We needed an efficient way to approve invoices, improve flow of approvals to site coordinators, and speed the information they are able to get on their jobs. With faster processing, they have more timely and accurate information to manage jobs more effectively. They can view drawings, equipment files, personnel files, insurance files, and accounting files wherever they are, in the office or in the field," he said. Currently the system is available to employees with invoice approval authority and to accounting and human resources staff. Eventually, the company will roll out the system to other departments within the 350-employee company. "Response has been very good since we went live with the accounts payable process in September," King said, "and the site coordinators certainly don't miss the stacks of red folders they used to deal with."

Schlouch currently images only current documents, but within a year plans to archive historical data using 1mage's powerful 1COLD software application that creates computer-output-to-laser-disk (COLD, or character data) documents. Historical records are now stored offsite in three large storage rooms, and King expects the need for external storage capacity will be phased out over the next seven years, as document retention limits expire.

The implementation process went smoothly, King reported. "1mage developed a complete implementation plan. They spent a week on site analyzing our processes and manual paperwork flow, then helped us organize the manual filing cabinets into categories, document types, and indexes. That gave us a good roadmap of where the project was going."

Schlouch's decision to seek a comprehensive business management solution came at exactly the right time, said Jerry Ferrell, president of Ferrell Companies. "This project was the maiden voyage of the business alliance between Ferrell and 1mage," Ferrell said, "and it gave us the opportunity to not just do it, but do it right. We come up with what we think is the answer, they test it in a real-world setting, and we go back and make it perfect. We've spent the last year doing that as we worked with Schlouch, and now we're ready to release the product to other customers."

David DeYoung, President and CEO of 1mage Software, noted that the Schlouch installation represents a unique blending of applications and technologies. "They're doing the document imaging on a Linux server. The entire system is web-based, with access through a Tarantella adaptive network protocol and hosted on a Tricord application appliance." No other company or product serving the construction industry can offer that level of flexibility, comprehensiveness, and sophistication, DeYoung said.

King added, "The partnership between 1mage and Ferrell takes imaging to a higher level by allowing our accounting users, field users, and project coordinators throughout the company, whether they're in the office or on a site, to access the information they need to run their jobs and their departments."

About 1mage

1mage Software Inc. provides document management and workflow automation systems for Linux, UNIX, and Windows family environments. The company's flagship product, 1MAGE, converts business documents of any origin into secure electronic images, and manages them throughout their lifecycle. 1mage's entire product line is marketed through a direct sales force and a network of value-added resellers (VARs). Through its Professional Services Group, 1mage also offers project management, consulting, installation, training, and application image-enabling services. For more information, call 303/773-1424 or visit 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 may be obtained at www.sec.gov or by written request submitted to 1mage.

NOTE: Brands and products referenced herein are trademarks or registered trademarks of their respective holders.