DOCUCON ANNOUNCES RECEIPT OF $14.8 MILLION CONTRACT; PROFITABLE FOURTH QUARTER RESULTS; AND TERMINATION OF UNPROFITABLE OPERATION.

SAN ANTONIO, Texas--(BUSINESS WIRE)--Feb. 12, 1996--Docucon, Inc. (The Nasdaq Stock Market: DOCU) today announced that it has been awarded a $14.8 million contract by the Department of Defense ("DOD") to provide a wide variety of electronic document services to DOD agencies over the next 18 months.

"DOD budget cuts and downsizing is accelerating the development of more cost efficient methods to procure, maintain and support existing and future weapons systems," said Alan Hobgood, Docucon's President, "and electronic support and distribution of technical documentation is a key element in these plans. We believe this contract indicates that Docucon will play a significant role in the development of electronic technical documents for DOD in both the short term and for years to come."

Docucon also announced that net income for the fourth quarter of 1995 reached $283,652, or $.02 per share, compared to a net loss of $662,158, or $.06 per share, in the fourth quarter of 1994. Management noted that fourth quarter earnings represent the Company's first profitable quarter since the third quarter of 1993 and the Company's highest quarterly profit since the third quarter of 1992. Revenues for the 1995 quarter totaled $2,846,566, a 34% increase over revenues of $2,116,470 in the same quarter the prior year. For the year ended December 31, 1995, there was a net loss of $605,563, or $.06 per share, compared to the 1994 net loss of $1,722,701, or $.15 per share. Revenues for 1995 rose 28% to $11,037,846 from $8,616,480 the prior year.

Operating cash flow, or earnings before interest, taxes, depreciation and amortization (EBITDA) was a positive $543,974 and $539,001 for the fourth quarter and year ended December 31, 1995, respectively, compared to a negative $314,369 and $402,314 for the respective 1994 periods.

The Company also announced that it intends to terminate the operation of the Litigation Support Services division of Docucon as soon as current customer obligations are completed, which is expected to take approximately 30 days. The division, which has provided litigation support services to law firms and corporate legal departments, has contributed heavily to the Company's past losses. "We increasingly curtailed our litigation support operations over 1995, thereby returning to profitability in the final period of the year. The significant resources previously spent on this business will now be devoted to our profitable government and commercial document management business, and to the continued development of our very successful JFS Litigator's Notebook(TM) software product," said Hobgood.

According to Ed Gistaro, Docucon's Chief Executive Officer, "Litigator's Notebook, which is based on Lotus Notes(R), is the hottest Notes product in the legal industry. We believe IBM's purchase of Lotus Development Corp. is a very positive development for our product position. IBM and Lotus sold 1.1 million Notes seats in the past quarter alone. This tremendous market penetration will provide a rich target market for our software products. Our plan for 1996 is to not only significantly enhance our JFS Litigator's Notebook(TM) but also to leverage our technology base to introduce important new products for the legal market and for other markets. These new products will exploit the Notebook's leadership position in the legal market, and also take advantage of exciting new networking, communications and Internet technologies."

Docucon is a leader in high-volume conversions of paper and microform documents to optical and other types of storage devices for the Federal and Commercial Markets. Through its J.Feuerstein Systems ("JFS") division, Docucon markets software products for use by attorneys in the litigation process, including the widely used JFS Litigator's Notebook(TM). -0-

                                Docucon, Incorporated
                               Statement of Operations
                                     (unaudited)

                        Three Months Ended          Year Ended
                          December 31,              December 31,
                         1995      1994          1995        1994

Revenues           $2,846,566  $2,116,470   $11,037,846   $8,616,480

Earnings (loss)
 before interest,
 tax,
 depreciation
 and amortization
 (EBITDA)          $  543,974  $ (314,369)  $   539,001   $ (402,314)

Net income (loss)
 before writedown
 of other assets
 to net realizable
 value             $  283,652  $ (524,658)  $  (605,563) $(1,439,259)

Writedown of other
 asset to net
 realizable value       --        137,500          --        283,442

Net income (loss)  $  283,652  $ (662,158)  $  (605,563) $(1,722,701)

Preferred dividends    14,438      15,813        60,334        3,170
Net income (loss)
 after preferred
 dividends         $  269,214  $ (677,971)  $  (665,897) $(1,785,871)

Net income (loss)
 per common and
 common equivalent
 share after
 preferred dividends     $.02       $(.06)        $(.06)       $(.15)

Number of shares
 used in computing
 earnings per common
 and common
 equivalent share  11,771,228  11,544,280    11,690,161   11,549,909

CONTACT: Docucon, Inc.

Edward P. Gistaro, Chairman, CEO

[phone]

or

DOCU'S INVESTOR RELATIONS COUNSEL:

The Equity Group Inc.

Tamara Ehlin [phone]

or

Eileen Shell [phone]