CAERE CORPORATION SETS INDUSTRY STANDARD WITH NEW, MOST COMPLETE FAX/OCR
SOFTWARE 

FaxMaster Integrates Send, Receive, OCR and Compress Capabilities

PC EXPO, NEW YORK, June 24, 1992 -- Caere Corporation, the market leader in
optical character recognition (OCR) software, today announced FaxMaster, a
new class of integrated fax/OCR software for Windows-compatible computers
that allows users to send, receive, OCR and compress fax documents.
FaxMaster overcomes many of the limitations of the current generation of
computer-based fax software by accurately recognizing faxes sent on
standard settings, efficiently storing fax images, and enabling direct
faxing from within popular desktop applications.

While PC fax cards have been available for years, they have not afforded
the functionality that users expected. According to recent findings by the
image communications systems service of market research firm BIS Strategic
Decisions, roughly two-thirds of all computer-based fax users expect to
receive computer editable text from their faxed document -- and they do
not; standard faxes are images, not text. Other basic functions routinely
performed on computer-generated files (eg. printing and storing) also
present major problems for computer-based fax due to file size and time
required for bit-mapped printing.

FaxMaster is the first fax software product to solve these problems. "With
FaxMaster, Caere is giving users the fax capabilities they have expected
for years, " said Larry Miller, Caere's vice president of marketing.
"FaxMaster provides users the flexibility to intelligently work with their
faxes in much the same way they do other documents."

"By addressing the recognition and storage limitations of today's PC-based
fax, Caere has achieved a real breakthrough for users," commented Michael
Heylin, senior analyst with market research firm Creative Strategies
Research International, Inc. "Caere has combined its best-of-class OCR
with best-of-class fax software to create a flexible, easy-to-use
solution."

Full-Featured, Integrated Software

FaxMaster's integrated features include send, receive, OCR and compress.

** Send -- FaxMaster lets users send a fax directly from within their
desktop application. Users simply select the FaxMaster icon from within
their existing spreadsheet or word processor, and the document on the
screen is sent exactly as it appears. FaxMaster also provides complete
phone book capabilities, eight quick-dial numbers, scheduling functions
and support for all leading scanners.

** Receive -- FaxMaster also lets users receive a fax without leaving their
desktop application. OCR is performed automatically in background mode on
incoming faxes. Unlike other fax software products, FaxMaster enables
users to receive both text and image versions of incoming faxes.
FaxMaster's LogViewer functions as an electronic in-basket for viewing
thumbnail sketches of faxes received. After viewing a fax, users simply
select the Export Text icon, and the fax is placed directly into their
existing application.

** OCR -- FaxMaster offers the most accurate character recognition for both
standard and fine-mode faxes. It is the first product specifically
designed to overcome the OCR limitations presented by standard or
low-resolution faxes. OCR has historically generated extremely poor
results on standard faxes, which are sent at a resolution of only 200 X
100 dots per inch. FaxMaster includes AnyFax OCR technology, specifically
designed to recognize these images. Caere has also incorporated the
FaxEditor and AutoSpell tools to give users additional text editing
capabilities.

** Compress -- Storing fax images on personal computers without taking up
valuable hard disk space is a common problem faced by PC fax users.
Caere's SuperCompression technology allows users to dramatically reduce
the size of faxed images and text for more efficient storage. Images are
compressed well beyond industry standards; SuperCompression stores
fine-mode faxes at up to 15:1 and standard-mode faxes at up to 5:1 over
CCITT Group III compression. Users can archive a complete fax image within
FaxMaster that includes text, logos, signatures, graphs, tables or
photographs. FaxMaster files uniquely contain both the complete bitmap in
SuperCompressed form and the recognized text.

New, Advanced Technologies

FaxMaster is built upon three key technologies:

** AnyFax OCR -- a completely new, neural OCR engine designed to solve the
low-resolution fax recognition problem. Based on neural net technology,
AnyFax intelligently interprets the information lost during low-resolution
fax transmission and recognizes characters based on weighted
probabilities. The first commercial neural OCR product, AnyFax also
incorporates Caere's market-leading AnyFont OCR technology to achieve such
high levels of recognition.

** Caere SuperCompression is proprietary technology within FaxMaster that
provides significant compression of incoming faxes. Historically most fax
software has been used for sending documents, as received faxes are often
large (greater than 1 MB), and can quickly fill up an average disk.
FaxMaster's SuperCompression achieves a net compression of up to 33:1 over
the original, uncompressed fax image. With FaxMaster, users simply access
compressed faxes from an electronic in-basket for subsequent review,
editing or printing.

** Direct input technology provides direct access between FaxMaster and
existing applications. For example, users may insert text directly into
applications such as cc:Mail, Lotus 1-2-3 and Microsoft Word. Faxes can be
received, recognized and passed on to an electronic mail system in one
step. While other fax/OCR products require users to leave the desktop
application and perform a series of steps to retrieve incoming faxes,
FaxMaster receives and recognizes incoming faxes automatically, converting
them to editable text and performing optical character recognition in the
background. Direct input allows users to treat FaxMaster as an extension
of their existing software, rather than a new application. This seamless
integration makes FaxMaster easy to learn and use.

Strong Market Presence

FaxMaster represents the second of two recent strategic moves by Caere that
have catapulted the company into a strong position in the burgeoning fax
market. Last month, Caere signed an agreement with leading fax software
company BIT Software, Inc. to provide its AnyFont OCR software in the
combined new product, Bit/Fax OCR for Windows. The partnership leverages
BIT Software's strengths in communications software and alliances with
computer manufacturers such as AST, NEC and AT & T. The solution will
bring integrated OCR and fax capabilities to a number of significant OEM
customers and an installed base of several million Bitcom users.

"Caere's entrance into the fax market is a natural evolution of our core
page recognition technology and is further demonstration of our commitment
to bring OCR to a broader market," commented John Migliore, Caere's
executive vice president and chief operating officer. "Users can expect to
see us continue to enhance our current product offerings and grow the
market by developing and integrating complementary technologies."

System Requirements

FaxMaster requires MS-DOS, version 3.1 or above; Windows, Version 3.1; and
a Windows 3.0-compatible 80386 system with 4 megabytes of RAM, a hard disk
with 8 megabytes of storage space, and a Windows-compatible pointing
device. The software is compatible with Class 1, Class 2, CAS and Sierra
SendFax modems. Among the fax modem boards supported are those from AST,
Practical Peripherals, Prometheus Products and Zoom Telephonics.

Pricing and Availability

The suggested U.S. retail price of FaxMaster is $249. The product will be
available in the third quarter from Caere's worldwide network of computer
resellers that includes personal computer and office superstores, computer
dealers and mail order. Caere has added a new, toll-free number to provide
information about FaxMaster: 1-800-643-3915.

Company Information

Caere Corporation, headquartered in Los Gatos, Calif., is the industry's
leader in the design, manufacture and sale of information recognition
software and products that provide an economical, accurate means of
converting text, numeric and bar-code data into computer-usable form.

CAERE Corp, 100 Cooper Court, Los Gatos, CA 95030
408-395-5391

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