Tangent Imaging Systems Announces Strategic Alliance with HP.

LIMERICK, Pa.--(BUSINESS WIRE)--March 3, 1999--

Aims to Ignite E-Commerce Market with OpenPix ImageIgniter and

Tangent Imaging Systems Solutions

Tangent Imaging Systems, a division of Scangraphics, Inc., (NASDAQ: SCNG), a pioneer and leader in wide format scanning and imaging software, today announced a strategic alliance with Hewlett-Packard Company (NYSE: HWP) to deliver HP's new OpenPix ImageIgniter server software and associated products.

Tangent Imaging Systems is positioning itself to quickly become the premier large format scanning solution of choice for large format image capture for the Internet.

Tangent Imaging's current technology combined with OpenPix provides a powerful new solution that represents a significant progression for many industries currently doing or planning to do business on the Internet. Businesses may now vastly improve the image quality and access time for the images their customers see and benefit from the multiple resolutions and high-quality printing capabilities. Travel, museums, apparel, consumer goods, and retail businesses will benefit greatly from the improved quality and speed of their web-site images.

OpenPix is a suite of products that define HP's implementation of the Internet Imaging Protocol (IIP) and FPX file format, an advanced digital image file format for viewing and printing high-resolution images on the World Wide Web. HP OpenPix ImageIgniter includes an image server, clientside viewers, and accompanying tools needed to incorporate high-resolution image files into existing and new web sites.

"HP ImageIgniter, combined with Tangent's large-format image scanning capabilities, will have a significant impact on high-resolution Internet imaging for e-commerce," said Jan C. Silverman, marketing and sales manager of HP's Internet Imaging Operation. "The combined solution will give customers high-resolution images with enhanced viewing capabilities and functionality on the Web."

"For the last eighteen months, we have worked very hard to understand the requirements of our customers and business partners to implement the potential of e-commerce into their wide format color business and we are convinced that the alliance with HP achieves this objective. We believe the power of these technologies will be a big differentiator for our customers in the marketplace," said Grif Griffin, President, Tangent Imaging Systems.

About HP OpenPix...

HP OpenPix ImageIgniter is advancing the use of high-resolution photographs and images as strategic tools to increase the Internet's practical application for business commerce, collaboration and communication. HP OpenPix ImageIgniter offers high-resolution, zoomable Internet images for businesses that want to deliver an interactive viewing and printing Web experience. More information can be found at http://image.hp.com/.

About Tangent Imaging Systems...

Tangent Imaging Systems is a pioneer and leader in large-format scanning hardware and imaging software technology with facilities in Limerick, PA and Englewood, CO. Its products are marketed both nationally and internationally through systems integrators and distributors.

Tangent's business partners include Sihl-GmbH in Germany, Shacoh-UK, Harvest Development, The ARC Companies, ReproCAD, Azon Canada, Inc. and The Library of Congress. Tangent Imaging Systems is a division of Scangraphics, Inc. Tangent Imaging Systems Internet Home Page is: http://www.colorscan.com.

About Scangraphics ...

Scangraphics, Inc., headquartered in Limerick, PA, is comprised of three operating companies: Tangent Imaging Systems, Sedona GeoServices, and Technology Resource Centers. This group pioneered and remains a leader in scanning and image processing technology, large document scanners, backfile conversion services, Geographic Information Systems (GIS) database management software, and imaging software and systems.

Scangraphics has Business Partnerships and Alliances with such companies as Oracle Corporation (NASDAQ: ORCL), Sun Microsystems, Inc. (NASDAQ: SUNW), TREEV, Inc. (NASDAQ: TREV), and Lockheed Martin (NYSE: LMT), and its products are marketed internationally through systems integrators and distributors. Scangraphics is a publicly held corporation, with shares traded on NASDAQ (SCNG) Scangraphics and its operating companies can be found on the Web at: www.scangraphics.com.

Forward Looking Statements...

Statements made in this news release that relate to future plans, events or performances are forward-looking statements. Any statement containing words such as "believes" "anticipates" "plans" or "expects" and other statements which are not historical facts contained in this release are forward-looking, and these statements involve risks and uncertainties and are based on current expectations. Consequently, actual results could differ materially from the expectations expressed in these forward-looking statements.

Scangraphics is a registered trademark of Scangraphics, Inc. Tangent, Tangent Imaging Systems and Reproworks are trademarks of Scangraphics, Inc. All other product names are trademarks or registered trademarks of their respective companies.