CAERE ANNOUNCES THE IMMEDIATE AVAILABILITY OF OMNIPAGE PRO 6.0 FOR
MACINTOSH

MAJOR NEW VERSION FEATURES IMPROVED ACCURACY, EASE OF USE, AND PERFORMANCE

January 8, 1996 - Caere Corporation (NASDAQ:CAER), the leader in optical
character recognition (OCR) software, today announced the immediate
availability of OmniPage Pro 6.0 for Macintosh, a major new version of the
world's number one selling OCR software. Now fully Power Mac native,
OmniPage Pro 6.0 provides significant improvements in accuracy, ease of
use, and performance. Other improvements build on the robust features
users have grown to expect from Caere, the market leader in OCR software.

OmniPage Pro 6.0 provides significant accuracy improvements due to
recognition advancements in Caere's exclusive Quadratic Neural Network
technology, Language Analyst improvements, and the new Page Parser. The
new version also includes new ease-of -use features such as the OmniPage
Guide, which uses Apple Guide technology to provide interactive assistance
to users, the enhanced AutoOCR Toolbar, and Direct Input. OmniPage Pro 6.0
also includes Caere's new True Page technology, which maintains the
original format of scanned pages, and HTML output capability - making
OmniPage Pro 6.0 the first software package ever to convert paper
documents directly into Web- ready pages.

ACCURACY: NUMBER ONE

Caere customers and industry analysts consistently agree that accuracy is
the most important factor for OCR technology. "In a recent survey of OCR
users, 89% identified accuracy as the number one requirement for OCR,"
said Kristy Holch, a leading analyst of the scanning and OCR market at BIS
Strategic Decisions, a division of Giga Information Group, in Norwell, MA.
"Caere is the OCR market leader, and its advancements in OCR technology
are upping the ante on the demanding requirements of the growing OCR
market."

OmniPage Pro 6.0 delivers an improved core recognition engine with new and
enhanced technologies to continue its tradition of industry- leading OCR.
With OmniPage Pro 6.0, users will see an average reduction in errors of
26% compared to the previous version of OmniPage Pro on the broadest
spectrum of documents without sacrificing processing speed or usability.

QUADRATIC NEURAL NETWORK: The most notable accuracy improvement in OmniPage
Pro 6.0 is Caere's exclusive Quadratic Neural Network (QNN) technology.
QNN achieves more accurate identification of all characters, but its
greatest contribution lies with similar-looking, ambiguous, or poorly
formed characters (mostly as a result of faxing, photocopying, or
low-resolution scans).

QNN gains its accuracy improvements over other OCR engines by using a new
method to define the differences between various characters. Once the OCR
engine segments word images on the page into individual character images,
it plots dozens of properties of each character (including image and
contextual information) on a multi-dimensional map. Each alphanumeric
character has a region on this map that the OCR engine recognizes as that
particular character. The OCR engine assigns a value for each property of
the character image in question. The character image is then identified as
a specific alphanumeric character based on the region into which it falls.
Most OCR engines use straight lines to define these multi-dimensional
regions, but QNN more precisely defines the regions by using curvilinear
segments, resulting in higher recognition accuracy, especially on
hard-to-recognize, ambiguous, or degraded characters.

By way of an analogy for QNN's accuracy improvement by using curved lines
instead of straight ones, consider the case of a population census for the
state of Missouri. If Missouri used only straight lines to define its
borders, a resident in St. Louis on the Mississippi River might be falsely
identified as being located in Illinois. However, curved lines more
clearly define state boundaries and therefore produce a more accurate
census.

LANGUAGE ANALYST: To further increase accuracy, OmniPage Pro 6.0 also
includes improvements to its Language Analyst technology. Language Analyst
features a new algorithm for incorporating a variety of context- sensitive
techniques that employ linguistic information, trigram (three letter
sequences) analysis, and dictionaries to significantly improve OCR
recognition. The new algorithm in OmniPage Pro 6.0 improves Language
Analyst by using better weighting schemes and evaluation methods on each
of these techniques.

PAGE PARSER : Another factor for increased accuracy is OmniPage Pro 6.0's
new page parser, which more accurately processes and analyzes document
images before sending them to the OCR engine for recognition. The new page
parser provides a higher level of intelligence to analyze page elements
and more accurately identify areas as text, graphics, or noise, which
results in higher accuracy and improved reading order of complex
documents.

EASE OF USE

"The MacOS affords us great opportunities to make maximum OCR accuracy as
accessible to users as possible," said Chad Kinzelberg, vice president of
marketing. "For example, by building on Apple Guide, we can make our users
more self-sufficient and productive than ever before."

APPLE GUIDE: OmniPage Pro 6.0 includes the new "OmniPage Guide," which uses
Apple Guide technology to provide interactive, step-by-step on-screen
assistance.

DIRECT INPUT: OmniPage Pro 6.0 includes new Direct Input, which gives users
the ability to OCR from within their favorite Macintosh applications
without having to switch between programs. OmniPage Pro adds a "Direct
Input" option to the Apple menu to integrate OCR into text-based
applications for quick access.

AUTOOCR TOOLBAR: OmniPage Pro 6.0 provides an enhanced AutoOCR Toolbar to
guide the user through the major steps of the OCR process. This improved
AutoOCR Toolbar includes a new Save As button for fast output of OCR
results, and a new "OCR and Check" option to automatically spell check
documents immediately after recognition. These additional features are
especially useful when used in conjunction with the Auto button, which
executes the entire OCR process in a single button click.

POWER MAC NATIVE

OmniPage Pro 6.0 is now fully Power Mac native. Power Mac users will enjoy
improved performance on OCR tasks like zoning, image rotation, and
alignment. While the previous version of OmniPage Pro included a Power Mac
accelerated recognition engine, new version 6.0 is the first version of
OmniPage Pro to offer completely native Power Mac performance.

OTHER NEW FEATURES

HTML OUTPUT: New OmniPage Pro 6.0 also outputs to HTML format to facilitate
the creation of World Wide Web pages. OmniPage Pro 6.0 is the first
software package to convert paper documents directly to HTML.

TRUE PAGE: OmniPage Pro 6.0 now includes True Page, the page-format
retention technology pioneered by Caere that maintains text and graphics
in their original page layout for export into other applications.

SCANNER COMPATIBILITY: OmniPage Pro 6.0 also includes support for
additional scanner models, including the HP ScanJet 4 series. OmniPage Pro
works with almost any scanner you can buy.

SYSTEM CONFIGURATION: OmniPage Pro 6.0 requires Macintosh computers with a
68030 processor and higher, Power Macintosh computers, or MacOS System 7
and higher, 5MB free RAM on 68K Macintosh computers, 7MB free RAM on Power
Macintosh computers.

PRICING AND AVAILABILITY

Scanner users who received any Caere OCR products free with their scanner
purchase are eligible to upgrade to OmniPage Pro 6.0 for $149 by
purchasing Caere's new retail upgrade package. The upgrade pricing
represents a $350 reduction in the street price of OmniPage Pro, which is
expected to be $499. Retail upgrades are available through Caere's
nationwide network of resellers, such as CompUSA, Computer City and all
major Mac mail-order houses.

Owners of any OmniPage retail product are eligible for a $99 upgrade to
Version 6.0 by calling Caere directly. Users who purchased OmniPage Pro
5.0 after December 8, 1995 are entitled to a free upgrade for a nominal
shipping and handling fee. Caere can be reached at 1-800- 535-7226, ext.
110.

CAERE CORPORATION

Caere Corporation, with U.S. headquarters in Los Gatos, Calif. and European
headquarters, Caere GmbH, in Munich, Germany, is the leader in OCR
technology and a leading provider of desktop document management and form
processing products. Caere has expanded its line of OCR products as a
result of the December 1994 merger with Calera Recognition Systems.
Caere's products include the OmniPage and WordScan lines of OCR software
that convert printed and faxed documents into electronic text; the
PageKeeper line of Windows document management software that effortlessly
retrieves a wide range of information from virtually any source; OmniForm,
which converts paper forms to electronic format; the M/Series high-speed,
high-volume OCR hardware and software for commercial applications; and a
broad array of OCR and bar code readers that accelerate transaction
processing.

Caere has recently announced its intent to acquire ViewStar, a leading
provider of workflow and document and image management software. The
combination will connect Caere's market-leading, desktop-based,
intelligent document capture product line with ViewStar's enterprise-
class, client /server solutions for business process automation. The
merger creates a company with the products, technology, channel and
financial strength to offer document, workflow, and business process
automation solutions that span from the desktop to the enterprise.
 
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