CAERE CORP. ESTABLISHES NEW IMAGING AND DESKTOP PRODUCTS DIVISIONS

New Dedicated Groups To Focus On Commercial Imaging And Mainstream PC
Software Markets

CHICAGO, Ill., April 1, 1996 -- To best serve the distinctly different
needs of two key segments of the information management and optical
character recognition marketplace, Caere Corporation (NASDAQ:CAER) today
announced the establishment of the Imaging Products and Desktop Products
divisions. The Imaging Products Division, under the direction of Vice
President and General Manger Dean Hovey, will concentrate on imaging, OCR
and recognition solutions for the commercial market. The Desktop Products
Division, under the direction of Vice President and General Manager Larry
Lunetta, will spearhead Caere's well respected line of retail software
offerings.

In conjunction with the announcement of the new divisional structure comes
the introduction of Caere's new family of high-end OCR products, the
M/Series II, at the AIIM show in Chicago. Under the umbrella of the
Imaging Products Division, these new products represent the highest
performance system available from Caere. The new M/Series II line is on
display in BOOTH # 2235.

Caere has long been recognized as the industry leader in OCR and
information management technology for the desktop via award-winning
software offerings such as OmniPage, PageKeeper and OmniForm. The
company's merger with technology OCR imaging products leader Calera
created the opportunity to streamline internal business functions into
separate divisions and best serve the diverse needs of imaging and desktop
product customers.

"Market requirements for workflow, production imaging, networking solutions
and the Internet are all driving the demand for high-end, scanned imaging
products," said Dean Hovey, Caere's vice president and general manger of
the Imaging Products Division. "Customers request for new solutions and
even higher performance OCR solutions give us first hand evidence of
increasing market demand. From around the globe we have customers asking
us to turn paper based images into computer understandable form. We gained
a true technological advantage in the high-end market through the
acquisition of Calera and we have already capitalized on that with our new
M/Series II line."

IMAGING PRODUCTS DIVISION

The Imaging Products Division will target its high-end product line,
including the new M/Series II, at enterprise solutions providers, system
integrators, developers and value-added-resellers who seek the industry's
highest OCR performance. The Division is ideally situated to provide
targeted products for full text and forms processing markets including the
legal, litigation support, tax form processing, government, service
bureaus and high-speed document capture which require accurate, high-end
OCR solutions. Developer's Kits from the new Division will be targeted to
ISVs and will enable Caere's superior OCR technology to be embedded into
specific applications.

"Demand isn't just coming from well heeled Fortune 1000 customers trying to
get control of their mounds of documents," said Serge Blanc, Imaging
Products Divisions vice president of engineering. "We are receiving
requests for our transaction based recognition products as well. Demand
for our new passport readers, batch document processors, and barcode
products are coming form the four corners of the planet; Slovenia,
Vietnam, Saudi Arabia and Switzerland. Everyone is going digital."

Caere's broad array of OCR and bar code readers designed to accelerate
transaction processing will also be offered by the Imaging Products
Division.

DESKTOP PRODUCTS DIVISION

The Desktop Products will focus on the retail channel with offerings such
as OmniPage, PageKeeper and shrink-wrapped versions of OmniForm electronic
forms software. The Desktop Products division will continue to follow
Caere's long-term strategy of providing complete information management
solutions to mainstream desktop users.

"Caere's ability to bring the industry's leading OCR technology to these
distinct market segments distinguishes Caere as the worldwide leader in
imaging and desktop OCR products," added Larry Lunetta, Caere's vice
president and general manager of Desktop Products. "We have listened to
our customers both from the retail and reseller channels and we believe
the newly established Caere divisions will give our customers the benefits
of our focused corporate mission in the imaging, recognition and retail
markets."

THE COMPANY

Caere Corporation, with US headquarters in Los Gatos, Calif. and European
headquarters, Caere GmbH., in Munich, Germany, is a leader in OCR
technology and desktop document management products. The company'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 reads, remembers, and
retrieves a wide range of information for personal computer users; the
M/Series high-speed, high volume OCR hardware and software for commercial
applications; OmniForm forms conversion software, and a broad array of
OCR-A, OCR-B and bar code products that accelerate transaction
processing.
 
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