Scangraphics Unit, Tangent Imaging Systems, Announces Reseller Agreement with Azon Canada, Inc.; Expects Revenues for North American Color Reprographics Market to Exceed $500K

Business Wire, June 16, 1998

LIMERICK, Pa.--(BUSINESS WIRE)--June 16, 1998--Tangent Imaging Systems, a division of Scangraphics, Inc., (NASDAQ: SCNG), a pioneer and leader in large format scanning and imaging software, announced today a reseller agreement with Azon Canada, Inc. of Winnipeg, MB Canada for the distribution of large format scanning systems throughout Canada. The value of this partnership is estimated at over $500k in color scanning solution hardware and software products.

Azon Canada, a national leader in supplying digital printing and color graphics equipment, chose Tangent because of similar visions of providing products that surpass their customer's needs. Both companies believe in customer service and support as a way to increase and maintain solid business relationships now and in the future.

According to Glenn Hubbartt, Marketing Manager for Azon Canada, "What we needed was a product that can offer excellent quality in digital imaging and output the first time. This is what our customers want and need, and this is why we chose Tangent. We are proud to be partnered with Tangent Imaging Systems and look forward to growth in providing our customers with the best color solutions available in the market today."

Tangent's superior hardware and software technology proved to be an essential ingredient in Azon's decision to represent Tangent products. Those cited as key benefits to their customers were Tangent's NT based color-matching software, Reproworks, which incorporates Tangent's unique Color Loop Process. This process allows the user to calibrate the scanner/plotter system for specific ink and paper choices and facilitates Tangent's outstanding color capture quality. This capability provides Azon with a significant competitive advantage. Equally as important for Azon's clients is the ability to scan drawings up to 44" wide and to be able to scan documents up to 1/4" thick. This allows Azon customers to run mounted images through the scanner with no machine adjustments.

Grif Griffin, President of Tangent Imaging Systems stated that, "As Tangent continues to achieve their status as a world leader in color scanning solutions, we strive to attract the highest caliber of resellers like Azon Canada. Their commitment to providing customers with excellent product offerings and premier customer service fits directly with Tangent's efforts to provide superior color scanning solutions and service to all of our clients - a true complement to our growing team of resellers throughout the world."

Larry Osterwise, President and CEO of Scangraphics, Inc. stated that, "The performance of Tangent products is attracting resellers worldwide. We are delighted that Azon Canada establishes our presence as a leader in large format scanning solutions to our northern neighbors. World-leading resellers are a key element in the growth strategy of Tangent and Scangraphics."

About Azon Canada, Inc....

Azon Canada, Inc. is a national company with eleven branch locations employing 130 staff members in Canada, including Customer Support Representatives, Sales Representatives, Service Technicians and Application Engineers. Azon Canada has partnered with World Leading Manufacturers in order to provide the best solutions to the marketplace. They are an Authorized Reseller Partner for Xerox ( NYSE: XRX ), Hewlett - Packard (NYSE: HWP), Seal, Wasatch, C4, Encad (NASDAQ: ENCD ), PLP and Tangent Imaging Systems among others. Azon Canada, Inc.'s Internet Home Page is: http://www.azoncanada.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 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.