Adaptive Solutions Announces New Entrylink Product Family.

ANAHEIM, Calif.--(BUSINESS WIRE)--May 12, 1998--Adaptive Solutions, Inc. (NASDAQ:ADSOD) announced today the EntryLink(TM) family of Computer Aided Data Entry products at the AIIM (Association for Information and Image Management) convention in Anaheim, California.

Shipping next month, the new EntryLink product line extends the value of Kodak scanners and microimagers by making them highly automated data entry peripherals for converting paper forms to useful on-line data. Building off of Adaptive's acquisition of Kodak's Imagelink(TM) OCR (Optical Character Recognition) business last October, EntryLink will be focused on meeting the needs of two sets of Kodak customers. EntryLink Bridge is the promised upgrade for current Kodak OCR sub-system customers while EntryLink Enterprise provides highly productive data entry for current and new Kodak microfilm and scanner users. Planned support for all EntryLink products will continue to utilize Kodak as a third party contractor for on-site service.

"When we acquired the Kodak OCR business last fall, we promised to deliver significant upgrades in conjunction with a full migration path forward to even more powerful offerings," said Daniel J. Meub, President and CEO of Adaptive Solutions. "We're proud to be delivering on that commitment so quickly with EntryLink Bridge which significantly addresses the top priority needs of our installed base. And with EntryLink Enterprise, our own advanced data entry software is complemented with best of breed components from our newly announced partnership with FormWare(TM), commercialization of advanced ICR (Intelligent Character Recognition) acquired from Kodak, and improved OCR from Mimetics, a European recognition software company acquired in March. In the future, look for us to continue to expand the range and functionality of the upgrade options we provide for Kodak microfilm, scanning and OCR users as we deliver breakout functionality that truly removes the barriers to data entry."

EntryLink Bridge

This upgrade to the current Kodak OCR sub-system provides Windows based key from image data correction, improved data validation, OCR and repair throughput gains, year 2000 compatibility, and a migration path to ongoing data entry improvements. Most of the enhancements provided in the EntryLink products came about as a result of interviews with existing Imagelink OCR system operators across the country.

"We made it a priority to get out and talk to the customers -- the people who are in the trenches and using these products daily," stated Richard Ewing, product manager for the EntryLink line. "They told us where improvements were needed, and we worked hard to implement their suggestions.

This valuable input also led us to emphasize high service levels and a full suite of forward looking migration options for existing customers."

EntryLink Enterprise

The EntryLink Enterprise line includes a range of complete, turn-key data entry products pre-configured to a customer's particular form and scalable from 5,000 to more than 30,000 forms per day. EntryLink products are unique in that they are designed to work with the current Kodak microimager line including the Kodak Imagelink Model 70 and Model 990 as well as the entire Kodak scanner family. Delivered as an integrated, performance matched hardware/software solution, EntryLink Enterprise provides accurate data capture at the full rated speed of the scanner or microimager and provides planned migration options for newer recognition technologies and integration of electronic forms.

"What really differentiates the EntryLink products from others on the market is Adaptive's unique `whole product' approach to product delivery and their emphasis on migrating installed Kodak customers incrementally," said David Wood of Wood Associates. "They've made it their mission to extend the value of the customer's existing investment in microimager equipment while minimizing disruptions caused by alterations to a customer's current workflow. And they are delivering products with planned migration options that can be added later within that information infrastructure."

EntryLink Delivery and Support

Adaptive Solutions is one of a select group of companies worldwide that Kodak has named as a strategic account for its Business Imaging Systems division. "We chose Adaptive Solutions as a strategic account because of their commitment to customer service, plus the forward-looking development skills to take forms data processing to the next level," stated Al Hahne, Director of Strategic Accounts at Kodak. "Adaptive's introduction of the EntryLink product family provides a great fit for our customers by adding unique turnkey data entry value to both Kodak micrographic, digital capture and storage products and building upon the Kodak legacy of quality, reliability and innovation."

As with every member of the Adaptive Solutions product family, EntryLink data entry peripherals will include comprehensive on-site maintenance and repair plans to maximize production up time. "Our aggressive on-site service plans, coupled with our commitment to well developed customer relationships and our hybrid digital-micrographic product offerings, make EntryLink an incredible value for anyone looking to add next-generation computer assisted data entry to existing microfilming or scanning operations," said Greg Holman, VP of Sales for Adaptive Solutions. "We believe that EntryLink makes an affordable and compelling case for evolving Kodak customers forward by providing migration paths to forms data entry using their existing micrographics equipment while offering the best in digital enhancements never before offered to them. For these customers, our evolutionary approach will preserve their substantial investment in current personnel, equipment, and operational experience."

Adaptive Solutions was founded in 1988 and pioneered data parallel processing for advanced pattern recognition image processing and OCR/ICR applications. The company currently designs and markets advanced solutions for Computer Assisted Data Entry to corporate-wide data management systems. Additional information is available on the company's web site at http://www.asi.com. -0-

EntryLink is a trademark of Adaptive Solutions, Inc.; Kodak and Imagelink are trademarks of Eastman Kodak Company; FormWare is a trademark of FormWare Corporation; Windows is a trademark of Microsoft Corporation.

(NOTE: NASDAQ trading symbol ADSOD is temporarily in effect from May 8, 1998 through June 8, 1998, after which trading will revert to the symbol ADSO.)

CONTACT: Adaptive Solutions, Inc.

Daniel J. Meub, 503/690-1236

e-mail: [e-mail]

or

Harris Massey Herinckx

Fletcher Chamberlin, 503/973-9226

e-mail: [e-mail]