Captiva Introduces the Digital Mailroom; System Automatically Classifies and Routes Digitized Images of Inbound Mail and Electronic Communications.

Business Editors/High-Tech Writers

AIIM 2003

NEW YORK--(BUSINESS WIRE)--April 7, 2003

Captiva Software Corp. (Nasdaq:CPTV), a leading provider of input management solutions, today introduced the Digital Mailroom(TM), a new, automated classification and routing system for digitized images of inbound mail and electronic communications.

The Digital Mailroom offers a single point of entry for a company's incoming mail, faxes, e-mail and electronic communications streams. The system automatically recognizes and routes digitized images of documents and data to the appropriate department or person for further processing while concurrently providing full auditing and tracking capabilities. This results in reduced operational costs, the elimination of cumbersome paper as it enters the enterprise and faster, more accurate routing of forms, documents and other transactions for accelerated business processes and optimized customer satisfaction. Built on InputAccel(R), Captiva's premier document capture solution, and fully integrated with FormWare(R), Captiva's award-winning forms capture solution, the Digital Mailroom can be easily expanded to include robust document and forms processing capabilities.

"By leveraging a common platform to capture a company's entire incoming communications stream, the Digital Mailroom is the logical next step in the evolution of managing input into the enterprise. Electronically assimilating structured documents and forms with scanner and software systems has long shown proven, rapid return on investment for thousands of companies. Now, progressive firms are looking to expand upon these efficiencies by capturing the content of every incoming document regardless of format, and managing all of their inbound communications into their enterprises," said Jim Vickers, Captiva's Chief Marketing Officer. "In the last two years, we've had many customers request a solution to manage the receipt, analysis, routing and delivery of all their communications, including so-called 'white mail.' In addition, we have a number of current customers, such as Sanlam, Imaging Acceptance Corporation, Siemens and Lloyds Bank, already utilizing custom versions of our existing software in their mailroom operations and enjoying the benefits of doing so. We believe the Digital Mailroom offers a strong value proposition, provides a compelling return on investment and meets a growing market demand."

Various analysts of the enterprise content management (ECM) and input management markets agree there is a strong, emerging business justification to amalgamating all incoming communications.

"As organizations attempt to address the growing number of data input sources, both traditional and Web-based, we see an increasingly stronger case for strategic data input systems capable of centrally managing various data sources and mediums. By the end of next year, we believe most organizations will be forced to either adopt a strategic data capture framework or outsource these functions," said Andy Warzecha, Senior Vice President and Service Director at META Group. "Solutions that offer centralized document processing of all incoming communications streams fulfill a specific, prevailing need in the market and should be well positioned for success in this burgeoning new segment."

A key feature of the Digital Mailroom is its ability to recognize and identify mail and document types through intelligent content classification technology and automatically route mail to the appropriate department. These capacities, according to Harvey Spencer Associates and Strategy Partners, two leading independent industry analyst firms that specialize in the document capture and input management market segments, will be in especially high demand in the years to come. The firms predict that the market for intelligent document classification software alone will grow at a compound annual growth rate (CAGR) of 36.7% from 2000 through 2005. They contend this niche will be the fastest growing segment within the entire input management realm.

Additional benefits offered by the Digital Mailroom include reduced mail processing costs, improved mail security, ensured capture of business-critical information and the quick delivery of time-sensitive data to streamline business practices.

"The Digital Mailroom will fundamentally change how information is collected, distributed and utilized across an enterprise. It is designed to substantially reduce the delays, communications bottlenecks, overflowing in-boxes and the perennial 'lost mail' problems that have existed in business for decades," added Vickers. "The Digital Mailroom leverages several Captiva strengths, including the abilities of our InputAccel and FormWare universal information capture platforms, our form and document identification and recognition technologies, our existing customer presence and our vertical market expertise in the insurance, financial services, government and other high document volume enterprises."

Captiva will demonstrate the Digital Mailroom at its booth (#1635) at AIIM. The presentation will showcase the Digital Mailroom's ability to manage both paper and electronic documents in a typical mailroom environment, working in conjunction with third party mail processing equipment. Digital Mailroom version 1.0 is planned for official release in the second half of this year. For more information, stop the Captiva booth, visit the Captiva product page at http://www.captivasoftware.com/products/index.asp or call 858/320-1000.

About Captiva

Captiva Software is a leading provider of input management 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.

Digital Mailroom is a trademark, and FormWare and InputAccel are registered trademarks of Captiva Software Corp. All other trademarks or registered trademarks are the property of their respective owners.

This press release may contain forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, among other things, any projections of the benefits of new products or market trends, any projections of earnings, revenues (including where the underlying contract has already been signed), or other financial items; any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. The risks, uncertainties and assumptions referred to above include, among other things, performance of contracts by customers and partners; employee management issues; the timely development, production and acceptance of products and services and their feature sets; the challenge of managing asset levels, including inventory; the flow of products into third-party distribution channels; the difficulty of keeping expense growth at modest levels while increasing revenues. These and other risks and factors that could cause events or our results to differ from those expressed or implied by such forward-looking statements are described in Captiva Software Corp.'s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as well as other subsequent filings with the Securities and Exchange Commission. We assume no obligation and do not intend to update these forward-looking statements.