Scan-Optics' Vice President of Access Services Division and Hardware Engineering to Retire

Business Wire, Oct 19, 2004

MANCHESTER, Conn. -- Scan-Optics, Inc. (OTCBB: 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 Clarence W. Rife will retire from his position of Vice President of Access Services Division and Hardware Engineering, effective December 16, 2004. Mr. Rife joined the company in 1969. During his tenure at Scan-Optics, Chuck made significant contributions to both the Access Services Division and the Company as it evolved into the state-of-the-art company that it is today. Chuck also played a key role in the development of the image and optical character recognition technology that the Company has developed and supported since its inception.

Commenting on his retirement, Mr. Rife said, "It has been extremely gratifying to have observed as well as participated in the growth of Scan-Optics in the data processing industry over these past 35 years. Any of the successes that I have personally experienced over these many years I owe directly to the efforts and cooperation of all of the Scan-Optics family. In moving on to retirement, I offer them my thanks and best wishes."

Mr. James C. Mavel, Chairman of the Board, Chief Executive Officer and President, stated, "Chuck's leadership will have a lasting effect on our Company. It is difficult to describe all that Chuck has contributed to the Company, the industry and, specifically, to our customers. Always the consummate professional, he sacrificed his time and effort to get the job done. Chuck is never long on words, but also never short on commitment. It has been my privilege to know and work with this true professional. We all wish Chuck and his wife, Jan, a very happy, healthy and rewarding retirement. Over the next 90 days we will begin the leadership transition of the Access Services Division."

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 multi-user business computers. 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, 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 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, 2003.