Scan-Optics Files for Patent Protection for SO Series Scanner

Business Wire, Dec 1, 2004

MANCHESTER, Conn. -- Scan-Optics, Inc. (OTC BB: SOCR), a leader in information capture and customer service solutions for government, insurance, order fulfillment, proxy, health claims, test scoring and other paper-intensive businesses, today announced that it has filed a provisional application for patent protection covering the novel features of its recently announced SO Series Scanner. This new application adds to Scan-Optics' diverse portfolio of patents and patent applications, such as Scan-Optics' pending patent application related to its AccuScore software and issued patents relating to ContexEdit, Acoustic Double Document Detect and other document handling related patents.

The innovative SO Series Scanner design replaces conventional hardware control logic boards with software developed by Scan-Optics, that runs on Microsoft's Windows XP and Win CE operating systems. In addition, the SO Series Scanner uses current "off the shelf" Intel-based hardware to host this software. This revolutionary approach dramatically reduces the number of complex electro-mechanical assembly boards and the amount of other electronic-based hardware typically included in high speed image and optical character recognition scanners. Not only does this substantially reduce the risk of obsolescent parts; it leverages the inherent technology upgrades provided in Microsoft and Intel software, both maximizing and protecting the customer's initial investment into the future.

"This revolutionary approach to scanner design leverages industry standard technologies which will allow us to take advantage of performance enhancements without having to change our software," explained Joel Howser, Vice President of Software Development at Scan-Optics. "Based on this design, we can upgrade an image-only scanner to our real-time OCR capability by simply increasing the computing power of the PC and adding the additional software."

Announced at the AIIM Show earlier this year, the SO Series Scanner not only offers the fastest throughput speeds of any scanner in its class - up to 240 ppm - it is the only transport that offers the flexibility to upgrade from image-only capture to multi-pocket sorting using inline optical character recognition (OCR). The editors of AIIM's E-Doc publication awarded the SO Series its coveted "Best of Show" Award for "providing a single platform that accommodates both image-only and OCR scanning needs with the same machine, at a low price."

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, data entry, and storage and retrieval. 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 business process outsourcing services to customers. Scan-Optics has sales and service offices located throughout the United States and abroad. Additional information is available at www.scanoptics.com.

Statements about Scan-Optics' 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 Scan-Optics' banking, lending and financing 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 Scan-Optics' periodic reports filed with the Securities and Exchange Commission, including but not limited to the Scan-Optics' Annual Report on Form 10-K for the fiscal year ended December 31, 2003.

SO Series(TM) is a trademark of Scan-Optics, Inc.