DICOM and Kofax Named Overall Global Market Share Leader for Document Capture Software by Harvey Spencer Associates for Second Year in a Row; Maintains Leadership Position as Market Surges Past Billion-Dollar Mark.

BASINGSTOKE, England -- DICOM Group plc ("DICOM Group") (LSE:DCM) and its wholly owned subsidiary Kofax, today proudly announced it has been named the global market share leader for document capture software by Harvey Spencer Associates Inc. (HSA) for the second year running. According to the newly released study titled "The Worldwide Market for Document Capture Software 2005-2009," the organisation's market share grew by a full percentage point - from 12 percent to 13 percent - as the market surged past the billion-dollar mark for the first time.

HSA, a New York-based analyst and consulting company that specialises in document scanning and capture, tracked quarterly revenues for 2004 and 2005 from 96 unique companies that serve the document capture software market. DICOM Group's software revenue (which includes Kofax) outpaced all other vendors.

The survey divides the market into four segments: ad-hoc and desktop scanning, batch and distributed scanning, transaction data and process management (formerly called data capture and process management), and full-text capture. In the batch and distributed scanning segment, the group continues to dominate, with a whopping 42 percent share, which represents a gain of 10 percentage points over last year and a share nearly three times greater than the nearest competitor. The report cites the organisation's global network of more than 1,100 Certified Solutions Providers (CSPs) as the driver of their leadership in this segment.

DICOM and Kofax also increased their lead in high-volume Capture, which HSA defines as the combined batch and distributed capture segment, plus the transaction data and process management segment. The Group gained three points, which now nearly doubles its nearest competitor's share.

The Group's first top 10 showing in data capture helped grow its high-volume performance (the report names only the top 5), and, as noted in the study, grew its transaction and process management capabilities through its acquisition of Neurascript.

"The market's 18 percent growth rate last year was approximately three times that of the overall IT market and it shows no signs of slowing," said Rob Klatell, Chief Executive Officer of DICOM Group. "That we maintained our number-one market standing during a period of such rapid growth is a testament to the effectiveness of our channel sales strategy as well as the organisation's ability to continue developing and delivering products that produce real business results for our clients. We will continue to focus on supporting our partners by developing the product innovations that solve our clients' toughest capture and processing needs to ensure we maintain our standing as the market grows to a $2 billion industry in the next few years."

The study notes the positive product development dividends being reaped by the 2004 acquisitions of Neurascript data capture technology and Mohomine classification technology and the successful business strategy those acquisitions supported for DICOM Group: "In product development, DICOM and Kofax incorporated the capabilities of Neurascript and Mohomine, acquired in 2004, into a new product, INDICIUS 5.0, that eliminates the need to insert separators in batches of documents. This has been successfully installed in high-volume environments."

According to the report, it was the organisation's ability to innovate and upgrade its Ascent Capture platform with functionalities specific to the needs of high-volume clients that allowed it to stay at the top of the market and also helped propel overall market growth.

"DICOM and Kofax have been successful in moving up the value chain incorporating more capability into their capture solutions," said Harvey Spencer, principal of Harvey Spencer Associates Inc. "The company is starting to successfully leverage its 2004 acquisitions, moving beyond its traditional smaller systems into higher end systems, which sell for over $100,000. This has contributed to their growth and to the growth of the entire market."