Alpharel announces record-breaking revenue and net income.

SAN DIEGO--(BUSINESS WIRE)--April 17, 1996--Alpharel/Trimco (NASDAQ/NMS:AREL) Wednesday announced first-quarter 1996 net income of $677,000, or 4 cents per share, on revenue of $6,061,000, compared with net income of $225,000, or 2 cents per share, on revenue of $3,151,000, for the same period last year.

Jay V. Tanna, president and chief executive officer, stated: "The company achieved its highest revenue and net income quarter in the company's 15-year history. This was the first quarter in which the benefits of the combination of Alpharel and Trimco was fully realized."

He added: "The first-quarter results show the company is continuing to make significant progress in combining the two companies. I believe the results for this quarter reflect only the beginning of the excellent momentum put in place for Alpharel and Trimco together as a global enterprise, as evidenced by the recently announced order totaling $2.3 million for Electronic Document Management Software (EDMS) from one of the largest utilities in Asia."

John W. Low, chief financial officer, added: "Software sales made up 60 percent of the quarter's $6,061,000 revenue, vs. 23 percent of revenue a year ago. The increase resulted in an improvement in gross profit percentage to 59 percent for the quarter, compared to 46 percent for the same period in 1995."

Alpharel/Trimco is a leader in delivering enterprisewide integrated information management systems to thousands of customers around the world. These systems are installed in manufacturing, utilities, petrochemical, government, banking, transportation and other industries.

Documents of all sizes, from letter-size pages to large-scale engineering drawings, are handled rapidly over global networks in a very cost-effective manner. Alpharel/Trimco products and customers have won numerous industry awards over the past few years. -0-

                            ALPHAREL INC.
                  Consolidated Statement of Operations
                            (Unaudited)

                                       For the three months ended
                                                March 31,
                                           1996           1995

Revenues                                $6,061,000     $3,151,000
Cost of revenues                         2,513,000      1,692,000
Gross profit                             3,548,000      1,459,000
Research and development                   907,000        225,000
Marketing and sales                      1,253,000        693,000
General and administrative                 711,000        322,000
Total operating expenses                 2,871,000      1,240,000
Income from operations                     677,000        219,000
Interest and other income                   26,000         34,000
Interest and other expense                 (26,000)       (28,000)
Income before taxes                        677,000        225,000
Provision for taxes                             --             --
Net income                              $  677,000     $  225,000
Net income per share                       4 cents        2 cents
Weighted average shares outstanding     18,813,000     14,065,000

-0-

                      Consolidated Balance Sheet

                                 March 31,      Dec. 31,
                                   1996           1995
                                (unaudited)
ASSETS
Current assets:
Cash and cash equivalents      $ 1,074,000    $ 4,656,000
Short-term investments              90,000        270,000
Receivables                      5,597,000      4,207,000
Inventory                          444,000        469,000
Other current assets               864,000        803,000
Total current assets             8,069,000     10,405,000
Long-term assets                 8,288,000      8,597,000
Total assets                   $16,357,000    $19,002,000

LIABILITIES AND
SHAREHOLDERS' EQUITY

Current liabilities            $ 5,080,000    $ 9,466,000
Long-term debt                   1,257,000      1,420,000
Shareholders' equity            10,020,000      8,116,000
Total liabilities and
 shareholders' equity          $16,357,000    $19,002,000

CONTACT: Alpharel/Trimco, San Diego 

Jay V. Tanna/John W. Low, 619/625-3000