CybeRecord Resumes ScanServer Production Following Upgrade.

Business Editors/Technology Writers

BELLEVUE, Wash.--(BUSINESS WIRE)--July 28, 2000

CybeRecord, Inc. (OTC:CYRD) announced today that it has resumed production and shipments of its ScanServer automatic microfilm scanner following an upgrade to the camera lens transport mechanism.

Prolonged accelerated stress testing of the initial transport at the company's manufacturing facility revealed a noisy lead screw, causing the engineering department to redesign, replace, and retest the mechanism to ensure long-term customer satisfaction with the scanner's quality.

"CybeRecord's quality control testing procedures put our ScanServers through operating conditions beyond that of most customers," said James Lucas, the company's chairman and chief executive officer. "The lead screw we replaced would not have caused a lapse in production, but its elevated sound under extreme conditions would have aroused quality concerns for those who pushed the unit to the maximum."

The company developed a suite of test programs to assure ScanServer's long-term accuracy and reliability. The tests exercise ScanServer at three functional levels. Low-level tests verify operation of individual hardware components, such as optics, illumination, and motor and control functions. Intermediate tests exercise basic system operations, such as film conveyance, camera lens transport, and user interface. High-level tests verify total system functionality, including auto-focus, microfilm scanning, and image processing.

"CybeRecord shipped eight ScanServers in June, prior to discovering the noisy lead screw during extended accelerated stress testing of a unit," said Lucas. "In July, we re-engineered the camera lens transport mechanism, had it manufactured, and are presently installing it in machines to replace those already shipped. Starting in August, our manufacturing facility expects to achieve an ongoing production rate of approximately twenty units per month. It continues accelerated stress testing of a unit, to see if other potential problems appear. We are determined to build equipment of the highest quality and durability. The testing procedures we've integrated into product design and manufacturing will help us to achieve that goal."

ScanServer -- the first economical, automatic, high-quality, and high-speed microfilm scanner -- facilitates digitization of a multitude of film formats into an enterprise-wide electronic database. It is the first microfilm scanner available on a monthly rental and -- when possible -- overnight-replacement program, which allows organizations to install as many scanners as necessary for the time they need them, with no capital expenditure and no worry about equipment breakdowns. In addition, ScanServer's push-button operation does not require a high skill level; the scanner quickly and automatically converts even marginal-quality microfilm images to high-quality digital images, with no operator intervention.

CybeRecord, Inc. develops and manufactures products that automate and enhance digitization of microfilm records, allowing knowledge workers and consumers to share this information as high-quality electronic images by way of the Internet, intranets, and extranets.

For more information, call CybeRecord at 425/990-5593 or visit our Web site at www.cyberecord.com.

This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are cautioned to understand that important risk factors could cause actual results to differ from those assumed or anticipated in the forward-looking statements. These risk factors include potential fluctuations in quarterly results and demands for products and services, dependence on new product development, rapid technological and market change, financial risk management, and future growth risks. These cautionary statements should be considered in connection with any subsequent written or oral forward-looking statements issued by CybeRecord or persons acting on its behalf. CybeRecord undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.