DOCUCON ANNOUNCES 1995 SECOND QUARTER RESULTS.

SAN ANTONIO, TX--Aug, 7, 1995--(BUSINESS WIRE)--Docucon, Incorporated (Nasdaq: DOCU) today announced unaudited financial results for the second quarter and six months ended June 30, 1995.

The Company reported revenues of $3,267,566 for the second quarter of 1995, up 44% compared to $2,274,443 for the same quarter of 1994. The net loss, after preferred dividends, applicable to common stockholders for the second quarter of 1995 was $288,284, or $.02 per share, compared to a net loss of $419,487 or $.04 per share, for the second quarter of 1994.

Operating cash flow, or earnings before interest, taxes, depreciation and amortization (EBITDA) for the second quarter of 1995 was a positive $17,160, compared to a negative $62,882 for the comparable 1994 quarter.

The Company noted that the increase in second quarter revenues compared to the same 1994 period was primarily due to increased sales of conversion services and software products. The net loss was reduced during the second quarter compared to the previous first quarter of 1995 and the comparable second quarter of 1994, but overall profitability was adversely impacted by disappointing margins in the litigation support services area. The Company has taken steps to remedy this by directing activities in the litigation support services area only to users of the Company's software products and by placing the management of these services in the backfile conversion division which has historically operated on a profitable basis.

"We were particularly pleased by the resurgence of our government conversion business in the second quarter and by continued success with our software products for the legal industry," said Ed Gistaro, Docucon's CEO. "The number of new and prestigious customers for our services and products is most encouraging and lays a strong foundation for continued growth in our chosen markets," he added.

Docucon is a leader in high-volume conversions of paper and microform documents to optical and other types of storage devices for the Federal, Commercial and Legal Markets. -0-

                     Docucon, Incorporated
                 Consolidated Statement of Operations
                          (unaudited)

                Three Months Ended    Six Months Ended
                      June 30,            June 30,
                  1995       1994       1995      1994

Revenues       $3,267,566 $2,274,443 $5,886,507 $4,269,675
Earnings (loss)
 before interest,
 tax, depreciation
 and amortization
 (EBITDA)          17,160    (62,882)  (104,156)    70,116
Net loss         (272,876)  (403,674)  (706,942)  (563,780)
Preferred dividends 15,408    15,813     31,221     31,544
Net loss after
 preferred
 dividends     $ (288,284) $(419,487) $(738,163) $(595,324)
Net loss per
 common and common
 equivalent share after
 preferred dividends $(.02)    $(.04)     $(.06)     $(.05)
Number of shares
 used in computing
 earnings per
 common and common
 equivalent
 share           11,651,838 11,544,280 11,632,474  11,613,476

CONTACT: Docucon, Incorporated The Equity Group Inc.

Edward P. Gistaro Carolyn Bancone [phone]

[phone] Eileen Shell [phone]