Breakthrough for Top Image Systems' eFLOW Unified Content Platform in Japan; TIS has completed the localization process of eFLOW Version 3.0.

TEL AVIV, Israel -- Fifteen major customers have chosen to upgrade their systems to the newly released Version 3.0 and over twenty have expressed their interest

Top Image Systems, Ltd. (Nasdaq:TISA), a leading innovator of Data Capture solutions, announced today that fifteen existing customers in Japan have decided to upgrade their solution to eFLOW Version 3.0, the latest version of the company's signature software, eFLOW Unified Content Platform.

Top Image Systems' subsidiary in Japan, TISJ, formally started operations in September, 2004. The establishment of the new entity was a natural evolution of the partnership between Top Image Systems and Toyo Ink, its local partner for the past eight years. Toyo Ink has transferred all of its existing customers and channels to the newly established TISJ, as well as the rights to distribute the Japanese localized version of TIS' eFLOW Unified Content Platform.

Implementing input management solutions in Accounts Payable departments in Japan is quite rare and most invoices and related documents are still being processed without the use of OCR- and ICR- based software. A great potential is ascribed to the Accounts Payable market in Japan. eFLOW Version 3.0, with its Freedom for semi-structured applications, perfectly meets the specific challenges of automated processing for financial functions, and ensures benefits to the organization on all levels.

"Since TISJ's founding, it has been our goal to provide new and existing customers with our robust solution, eFLOW Version 3.0. The current success fits our strategy to expand our leadership position in the Japanese input management market," said Ido Schechter, CEO of Top Image Systems. "Many man-months have been invested in the development of eFLOW Version 3.0 with its adjustments to the special needs and character of Japanese customers. Currently, we are proud to present the localized solution. eFLOW Version 3.0 provides customers with a complete, originally designed platform, single end-to-end solution to streamline the entire flow of any kind of document, in any format and from any source, and to integrate into any enterprise system, including SAP and Oracle."

Fifteen of the market's largest customers have already chosen to upgrade the systems they have been using to the newest and most powerful version of eFLOW. Over twenty additional customers have expressed a strong interest in this move and are expected to upgrade their systems in the next three years.

The enhanced solution includes the ability to sort the incoming information, classify all documents, automatically recognize and extract the data from documents, apply the organization's business rules, validate the data, and seamlessly deliver these data to back-end enterprise systems. These capabilities are efficiently achieved by using best-of-combination of imaging, search, and recognition engines to provide customers with the highest recognition results.

About Top Image Systems

Top Image Systems is a leading innovator of enterprise solutions for managing and validating content entering organizations. Whether originating from mobile, electronic, paper or other sources, TIS solutions deliver the content to applications that drive the organization. TIS' eFLOW Unified Content Platform is a common platform for the company's solutions. TIS markets its platform in more than 30 countries through a multi-tier network of distributors, system integrators and value added resellers, as well as strategic partners. For more information on TIS, visit the company's web site at: www.TopImageSystems.com.

"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995:

Certain matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties including, but not limited to, risks in product development plans and schedules, rapid technological change, changes and delays in product approval and introduction, customer acceptance of new products, the impact of competitive products and pricing, market acceptance, the lengthy sales cycle, proprietary rights of the Company and its competitors, risk of operations in Israel, government regulation, dependence on third parties to manufacture products, general economic conditions and other risk factors detailed in the Company's United States Securities and Exchange Commission filings.