Arkansas Office of Information Services Selects Captiva for Tax Return Input Management.

SAN DIEGO -- State Agency to Combine FormWare and InputAccel to Create a Comprehensive Processing Solution

Captiva Software Corporation (NASDAQ:CPTV), a leading provider of input management solutions, announced today that the Office of Information Services for the State of Arkansas' Department of Finance and Administration has selected Captiva's solutions to capture and process the more than 1.2 million tax returns and related documents it receives every year. The value of the contract to Captiva is approximately $200,000.

The Office will utilize FormWare(R), Captiva's award-winning forms processing solution and InputAccel(R), Captiva's flagship document capture solution, to convert paper tax returns into electronic content, extract critical information from the returns and automatically export this information into the State's tax administration system. The new solution is expected to reduce the Office's dependency on cumbersome paper handling, reduce tax processing times, increase information accuracy, improve the security of taxpayer information and improve the availability and accessibility of information to its staff and state taxpayers.

"We're pleased to welcome Arkansas as our latest state tax processing customer, the number of which has grown to approximately two dozen state agencies," said Howard Dratler, Captiva's Executive Vice President of Field Operations. "Our success in this segment is due to our in-depth understanding of these customers' needs, the abilities of our solutions to quickly and accurately process complex tax forms and the success and proven return on investment our solutions have delivered to these agencies."

About The State of Arkansas Office of Information Services

The Office of Information Services is responsible for managing the information technology resources of the State of Arkansas Department of Finance and Administration. The primary goals of the office are to enhance IT customer service, reduce operating costs, standardize IT policies and procedures and to provide stability and security to the department's local area networks. More information can be found at www.arkansas.gov/dfa/info_svcs/.

About Captiva Software Corporation

Captiva Software Corporation (NASDAQ:CPTV) is a leading provider of input management software solutions. Since 1989, the company's award-winning products have been used to manage business critical information from paper, faxed and scanned forms and documents, Internet forms and XML data streams into the enterprise in a more accurate, timely and cost-effective manner. These products automate the processing of billions of forms and documents annually, converting their contents into information that is usable in database, document, content and other information management systems. Captiva's technology serves thousands of users in insurance, financial services, government, business process outsourcing, direct marketing and other markets. For more information, visit www.captivasoftware.com.

InputAccel and FormWare are registered trademarks of Captiva Software Corporation. All other trademarks or registered trademarks are the property of their respective owners.

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