CallWare Technologies and Xerox Desktop Document Systems Announce OEM Agreement; CallWare's Intr@FAX Combines with Xerox' TextBridge OCR to Improve Desktop Functionality.

SALT LAKE CITY--(BUSINESS WIRE)--March 4, 1997--CallWare Technologies Inc. today announced a worldwide strategic agreement with Xerox Desktop Document Systems to integrate Xerox' award-winning TextBridge Optical Character Recognition (OCR) scanning software with Intr@FAX, CallWare's superior fax server.

The coupling of these technologies will allow users to edit incoming faxes without manually scanning a hard copy of the document. Users will also be able to send incoming faxes directly to a printer and still retain complete document integrity, including graphics, diagrams and fonts. TextBridge OCR will be included in every Intr@FAX software package.

"Our partnership with Xerox TextBridge brings leading OCR technology to our feature-rich fax server, adding even greater functionality for Intr@FAX users," said Reino Kerttula, Vice President of Marketing for CallWare Technologies. "Combining Xerox TextBridge with Intr@FAX eliminates the need for faxed information to be manually scanned or rekeyed. Incoming faxes are captured and can be saved or printed in their original format."

According to Wayne Crandall, Vice President of Sales and Channel Marketing for Xerox DDS software, "Being a force in the worldwide OCR market is extremely important to our strategy to enable customers around the world to have access to our innovative and accurate OCR technology. This strategic relationship with CallWare provides the ideal opportunity to enable users to quickly and easily capture, recognize and edit any incoming fax, providing significantly increased benefits for all fax users."

To overcome the limitations of existing fax servers (such as manual routing, setting up DID lines and purchasing expensive fax boards), CallWare has taken its proven voice technology and applied it to fax applications. CallWare's Intr@FAX uses DTMF routing, allowing senders to direct faxes by entering the recipient's extension number.

This direct routing provides total security and privacy for the recipient. With CallWare's Intr@FAX, a traveling employee that receives a fax in his or her mailbox can be notified of the new fax via pager, telephone or through a screen pop on a computer.

The employee can then retrieve the fax over the Internet and view it on his or her laptop PC. If a hard copy is needed, the employee can then direct the fax to the hotel's fax machine. Faxes can also be annotated and forwarded to others. Requiring only class 2/2.0 modems, Intr@FAX's integrated voice and fax technology offers advanced fax features at very little cost.

CallWare's Intr@FAX integrates with CallWare ViewPoint and 3rd party e-mail packages such as Novell GroupWise, MS Exchange/Outlook and Lotus Notes to provide users with a complete unified messaging solution. Intr@FAX can send faxes created in any application using Windows-based printer drivers, including: MS Word, MS Excel, MS PowerPoint, MS Exchange, Corel WordPerfect, Corel Quattro Pro, Corel Presentations, Lotus Ami Pro, Lotus Notes and Novell GroupWise. CallWare's Intr@FAX may also be configured as a stand-alone fax product.

Designed for Windows 95, NT 4.0 and 3.1, Xerox' TextBridge OCR software enables users to scan, recognize and edit text from paper documents or faxes, eliminating the time, expense and error of re-typing and re-formatting. With TextBridge, user will discover that the original document format stays completely intact, including pictures, cell tables, columns, headers, footers and photo captions.

Xerox Desktop Document Systems develops, markets, distributes and supports systems and software that capture, communicate and print documents at the desktop. These systems and software products incorporate advanced Xerox technologies to improve document quality and communication, and are marketed through retail and direct channels and OEM partnerships. The division is headquartered in Palo Alto, Calif., the software product group is based in Peabody, Mass. and European operations are located in Reading, England.

Xerox Corporation is a global enterprise serving the worldwide document processing market. The company's document processing business develops, manufactures, markets, services and finances a complete range of products and services designed to make offices around the world more productive.

An international computer telephony vendor headquartered in Salt Lake City, CallWare Technologies links computers and telephones by providing the first software-only Internet/Intranet solutions for voice and call processing. CallWare integrates stand-alone voice mail and unified messaging in LAN and Intranet environments with over 300 telephone systems and provides free long-distance voice messaging over the Internet.

CallWare has the largest network of data and interconnect value-added resellers (VARs) providing computer telephony solutions in 32 countries. CallWare also offers computer telephony training to end-users and resellers via 25 education centers throughout the United States and the world. Information about CallWare and its complete range of products and services can be accessed on the World Wide Web at http://www.callware.com . -0-

CallWare is a registered trademark of CallWare Technologies. TextBridge is a registered trademark of Xerox Corporation. All other trademarks are the property of their respective owners.

CONTACT: CallWare Technologies Inc., Salt Lake City

Reino Kerttula, 801/486-9922

e-mail: [e-mail]

or

Politis Communications

Kevan Barney or David Politis, 801/523-3730

e-mail: [e-mail]

or

Xerox Corp.

Melanie Fleming, 508/977-2039