J & B Software Acquires License for Mitek Systems' Doctus Forms Processing Technology; Columbia House Adopts Newly Integrated Technology

Business Wire, Jan 22, 2003

Business Editors/High-Tech Writers

POWAY, Calif. & BLUE BELL, Pa.--(BUSINESS WIRE)--Jan. 22, 2003

Mitek Systems, Inc. (Nasdaq:MITK), a developer of automated check imaging and document processing solutions, and J & B Software, a leading provider of transaction processing solutions, announced today that J & B Software has acquired a license for Mitek's Doctus(R) forms processing software. J & B Software plans to continue the development of Doctus, incorporating this forms processing technology into its industry-leading TMS Image(TM) remittance processing and lockbox applications. Mitek will provide substantial custom integration and programming services for some of J & B Software's premier customers as part of the agreement.

The licensing of Mitek's Doctus software is a milestone in the longstanding partnership the two companies have developed. Mitek and J & B Software are strategically committed to further developing the Doctus technology, which will enhance J & B Software's position as a premier provider of forms processing solutions.

The first adopter of J & B Software's newly integrated forms processing technology is The Columbia House Company, the world's largest direct marketer of music and video home entertainment products. Columbia House processes up to 100,000 deposits, 200,000 order cards and 70,000 new member applications daily. Each form contains up to 20 fields of data to be captured with approximately 70 validation workstations to verify the information.

"The business case was strong and the savings potential was attractive. So far it looks like we are going to exceed our ROI projections," said Terry Dwyer, chief operating officer at Columbia House.

"We chose to partner with Mitek a few years ago to add recognition technology to enhance TMS Image and accelerate the deposit process," said Bala Balasubramanian, president and CEO of J & B Software. "By enabling our customers to use enhanced recognition capabilities, we have increased their confidence in results, improved read rates 10-15% and improved the odds that a transaction will be automatically balanced. When we identified Intelligent Character Recognition (ICR) as a technology that would benefit our customers, it just made sense to expand our relationship with Mitek. We hope to build on the ICR capabilities presently in the Doctus product to streamline scanning workflows," added Balasubramanian.

"We are very pleased that J & B Software has acquired a license for the Doctus forms processing software. The integration of Doctus into J & B Software's product line is a major benefit for complex remittance processing and document capture applications," said John M. Thornton, chairman and president of Mitek Systems. "Mitek and J & B Software have had an excellent business relationship over the years and we look forward to strengthening it in the future," added Thornton.

About J & B Software

J & B Software, founded in 1984, is a privately held company with more than 250 employees and operations in the U.S. and Asia. The company has earned a reputation for excellence by developing and delivering financial software and services for mission-critical payment, transaction and document processing. More than 165 industry-leading companies and government agencies rely on J & B Software's solutions. With roots in remittance processing, the company's flagship product suite, TMS Image(TM) handles more than two billion checks annually and runs on all leading transport systems. J & B Software has the flexibility to provide in-house solutions or outsourcing services and consulting. By leveraging its knowledge and experience, the company provides industry-specific solutions that can be customized for an individual organization. To learn more, visit the company's Web site at www.tmsimage.com.

About Mitek Systems

Mitek Systems is a leading provider of check imaging software for financial institutions, and an established global supplier of embedded software recognition engines. These engines process over 8 billion checks and other documents per year for a variety of OEM and reseller partners. Mitek helps reduce operating costs by automatically reading, classifying and processing high volumes of checks and documents. Our applications also help customers implement new image document Web services for Internet and intranet configurations. For more information about Mitek Systems, contact us at 14145 Danielson Street, Suite B, Poway, CA 92064; 858/513-4600 or visit our Web site at www.miteksys.com.

Forward-Looking Statement Disclosure

With the exception of historical matters, the matters discussed in this news release are forward-looking statements that involve risks and uncertainty. Forward-looking statements include, but are not limited to, statements relating to the development and pace of sales of the Company's products, expected trends and growth in the Company's results of operations, projections concerning the Company's available cash flow and liquidity, anticipated penetration in new and existing markets for the Company's products and the size of such markets, anticipated acceptance of the Company's products by existing and new customers, the ability of the Company to sustain any growth in sales and revenue and the increase in sales representatives and other personnel. The Company's actual results could differ in such forward-looking statements. There can be no assurance that the Company will achieve the results set forth herein. Mitek, Mitek Systems and Doctus are registered trademarks of Mitek Systems, Inc. All other product or company names may be trademarks or registered trademarks of their respective holders.