Scan-Optics Announces New Software Technology.

Business/Technology Editors

MANCHESTER, Conn.--(BUSINESS WIRE)--Feb. 4, 2002

Scan-Optics, Inc. (OTC BB:SOCR), a leader in Information Capture and Customer Service Solutions for Government, Insurance, Order, Proxy, Test Scoring and other paper-intensive businesses, today announced that it has developed AccuScore, a new software program for reading "bubble" forms using electronic imaging technology. Using the technology called GSOMR or Grayscale Optical Mark Read, this software program can process SAT tests, questionnaires, voting ballots, or any types of forms that are completed by filling in small preprinted circles or ellipses with a pencil. The software has been developed by Ed Scanlon, Principal Software Engineer for Scan-Optics, and a patent has been applied for. The automatic scoring (i.e. reading) of "bubble" forms using automated equipment is certainly nothing new. Actually, bubble forms were invented precisely for the purpose of automated processing using specialized scanning equipment. What is different about this program is that it uses electronic image capturing technology in conjunction with specialized image processing software for performing the scoring.

AccuScore works in conjunction with an image capture scanner that produces an electronic reproduction of each form. The electronic images are processed by this new program to produce scoring results that achieve an accuracy rate equal to or better than those achieved by the LED (light emitting diode) scanners. Various makes and models of scanners may be used with this program, but the most accurate results are achieved when using scanners that produce grayscale image output. It is therefore not necessary to require the same expensive paper and printing process as is required by the LED scanners. Thus, paper and printing costs can be greatly reduced without sacrificing accuracy. In addition to extremely high accuracy rates and reduced paper and print costs, this process offers greater flexibility in forms design and a flexible, easy to use forms definition tool.

The GSOMR program has two components. The first is the form definition tool called OmrGen. This component is used to precisely define the locations and interpretations of each bubble target on each form type to be processed. The other component is the run-time scoring engine that takes the scanned images from the scanner, the forms definition information from the OmrGen program, and produces the score results.

Scan-Optics, Inc., with headquarters in Manchester, Connecticut, is recognized internationally as an innovator and solution provider in the information management and imaging business. It designs, manufactures and services products and systems for character recognition, image processing and display, data capture, and data entry. Scan-Optics systems and software are marketed worldwide to commercial and government customers directly and through distributors. Through its Manufacturing Services Division, Scan-Optics also provides contract manufacturing services to customers, outsourcing the manufacturing of complex, electro-mechanical assemblies. The Company has sales and service offices located throughout the United States and abroad. Additional information is available at www.scanoptics.com.

Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" made under safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could materially affect future results. Among these risk factors are changes in general economic and business conditions in the United States and foreign markets, which impact capital investments by customers, the cyclical nature of funding within federal and state government agencies, further adverse changes in the Company's banking relationship, insufficient cash resources, increased competition from similar products, the implementation of other technologies which may provide alternative solutions, ability to complete projects in a timely manner, and other risk factors and cautionary statements listed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission, including but not limited to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2000.