INSCI Corp. Comments On September Quarter Revenues; Windows NT Products Introduced in Early October.

WESTBOROUGH, Mass.--(BUSINESS WIRE)--Oct. 24, 1997--INSCI Corp. (NASDAQ:INSI), Friday said that revenues for its second fiscal quarter ended Sept. 30, 1997 were $1.9 million, approximately 10 percent below the $2.1 million reported for the year-earlier second quarter, primarily because its new NT-based products, COINSERV for Windows NT, were introduced subsequent to the end of the quarter. The company will report a loss for the September quarter.

Dr. E. Ted Prince, INSCI chairman and chief executive officer, commented: "Although the market for archiving software is growing strongly, the principal growth is occurring in tandem with the very rapid growth of Windows NT. We have just released COINSERV for Windows NT, our new archiving software and we believe it will begin to capture market share and increase our sales, since initial feedback is very positive. For the September quarter, however, the only products we had available for sale were our UNIX-based software, for which demand has slackened due to the ascendancy of Windows NT."

Prince added that INSCI is also increasing its product flow through indirect sales channels, which are well-suited to the Windows NT product line; a primary emphasis is to work with sales partners such as Unisys Corp. and Xerox Corp. He said that the company's transition period is expected to taper down as COINSERV for Windows NT is introduced into the market and to the entire sales channel.

Prince said, "We expect revenues from COINSERV for Windows NT to begin increasing over the next several quarters."

INSCI develops, markets, and supports software for the automated document factory. The company markets its products through a combination of direct sales force and marketing relationships with companies including Unisys and Xerox Corp. For more information about INSCI Corp., visit its home page on the Internet at http://www.insci.com . -0-

The statements in this news release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties pertaining to customer orders, demand for products and services, development of markets for the company's products and services and other risks identified in the company's SEC filings.

Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

CONTACT: Allen & Caron Inc

Mark Alvino (investors), 212/698-1360

Owen Daley (media), 714/252-8440

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INSCI Corp.

Ted Prince, 508/870-4015

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Roger Kuhn, 508/870-4014

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