XSoft Division of Xerox to Acquire Agfa CAPS Publishing Products
Strategic expansion for XSoft publishing group

PALO ALTO, Calif., August 9, 1993 -- XSoft, a division of Xerox
Corporation, has signed a letter of intent with Agfa, a division of Miles
Inc. located in Wilmington, Mass., to acquire Agfa's Computer Automated
Publishing System (CAPS) software products. XSoft intends to incorporate
the CAPS products as a strategic expansion of its publishing product

The CAPS product line is made up of two parts: a document composition
system, called CAPS, and a document database management system currently
under development. Both offer compliance with the Standard Generalized
Markup Language (SGML) publishing industry standard. The CAPS composition
product is the industry's leading solution combining automated publishing
in the SGML standard with a WYSIWYG (What You See Is What You Get) editing
environment. The document database management system will incorporate new
technology that allows technical publishers to manage individual document
components in addition to entire documents. This enables the re-use of
information, eliminating unnecessary document re-creation and reducing
production time and costs.

XSoft president Dennis Andrews stated, "Effective technical publishing is
an important contributor to bottom line profitability in many
organizations today. To keep productivity high, users require an open
systems approach, support for standards, and powerful products. The
acquisition of the Agfa CAPS products proves our commitment to delivering
solutions that incorporate all of these critical elements. It will expand
our publishing software offering with proven, highly respected technology
and move us quickly to the forefront of the technical publishing
industry."

Russell Spencer, Agfa's senior vice president of Field Services, added, "In
offering the CAPS products for sale, our most important consideration was
maintaining the previous levels of service and satisfaction for CAPS
customers. XSoft, with the resources of Xerox behind it, has consistently
delivered exemplary customer service and support. We move forward in this
transition confident that XSoft will serve the CAPS customers at the high
standards to which they have become accustomed."

As is typical in such proceedings, the letter of intent signed by XSoft and
Agfa is a non-binding document.

The CAPS Products

The CAPS document composition product features SGML editing, automated
pagination, distributed network publishing, interactive parsing, and SGML
translators. The product also interfaces with a wide range of personal
computer and workstation platforms and operating systems, so that users
can capitalize on their current investments.

The shared document management system extends the functionality of CAPS by
managing document storage, organizing document content and coordinating
the editing, maintenance, and production process. It employs
object-oriented SGML as its document architecture, takes full advantage of
interchange standards, and provides application interfaces to other
vendors' SGML applications, an important open systems capability.

The CAPS products will provide additional document composition and database
management capabilities to XSoft's current publishing products. All of
these products support XSoft's Open Document Environment strategy by
offering full support for multiple industry platforms and operating
systems.

Targeted Markets

XSoft will continue to focus its technical publishing efforts on the
industries and vertical markets that are adopting SGML as a corporate
direction, including aerospace, automotive, defense, pharmaceuticals,
financial, telecommunications, computer systems, and technically oriented
government agencies. Users of technical publishing applications in these
markets are now beginning to seek better software solutions for tracking
the progress of their projects. To address this, XSoft plans to combine
its powerful InConcert workflow software product and future generations of
its workflow technology with its technical publishing offerings.

Agfa

Agfa is the imaging division of Miles Inc. Headquartered in Ridgefield
Park, N.J., Agfa Graphic Systems manufactures and markets electronic and
photographic prepress systems, type and font products, phototypesetting
materials and presentation graphics systems for the graphic arts and
publishing industry. Agfa also manufactures products and systems for the
medical and technical diagnostic and amateur and professional photographic
markets. Miles Inc. is a Fortune 100, research-based company with
businesses in chemicals, health care and imaging technologies.
Headquartered in Pittsburgh, Miles employs some 23,000 people in its
operations throughout North America. In 1992, the company's sales were
about $6.5 billion.

XSoft

Headquartered on a campus with PARC, the renowned Xerox research center in
Palo Alto, Calif., XSoft was formed by Xerox Corporation in July 1991 to
provide software that improves the way people use documents to create,
capture, manage and communicate ideas and information.

XSoft develops and markets a broad range of products for document
management, office productivity, structured-document publishing, workflow
management, international document translation and content-based search
and retrieval. In addition, XSoft enables workgroup collaboration through
a series of shared document services products. The company also offers
extensive product support, training and consulting services. XSoft's
products and services are available on multiple operating systems,
networks, and computer platforms. They are sold through a worldwide
network of direct sales and reseller partners.

Uniquely positioned to utilize Xerox' document systems expertise and
worldwide research and development efforts, XSoft is dedicated to turning
advanced technology into leading-edge products and providing an Open
Document Environment for all computer users.

For product information: Customers may call 1-800-626-6775.

XSoft, 3400 Hillview Ave, Palo Alto, CA 94304
415-424-0111,   fax 415-813-7162

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