For Immediate Release
Contact: Roger Kuhn
INSCI Corp
508-870-4014
rkuhn@insci.com

INSCI Corp Announces Third Fiscal Quarter Financial Results

Record Revenues Reported - Nine Months Increase By 65%

WESTBOROUGH, MA. - January 29, 1997 - INSCI Corp today announced that revenues for the third fiscal quarter ended December 31, 1996 were $3,360,000 - a quarterly record high - for an increase of 56% compared to revenues of $2,155,000 for the quarter ended December 31, 1995. Net income for the December 31, 1996 quarter was $98,000 compared to a net loss of $97,000 for the quarter ended December 31, 1995. After provision for preferred stock dividends of $139,000, which primarily relate to capital raised for acquisition purposes during the Fall of 1996, net loss applicable to common shares was ($.01) cents per share for the quarter ended December 31, 1996 compared to a loss of ($.03) per share for the same period in 1995.

Revenues for the nine months ended December 31, 1996 were a record high and totaled $8,380,000 for an increase of 65% compared to revenues of $5,072,000 for the nine months ended December 31, 1995. Net loss for the nine months ended December 31, 1996 was $683,000 compared to a net loss of $1,493,000 for the nine months ended December 31, 1995. Net loss applicable to common shares, after preferred stock dividends of $220,000, was ($.23) cents per share for the nine months ended December 31, 1996 compared to a loss of ($.42) per share for the same period in 1995.

According to Ted Prince, INSCI's Chairman and Chief Executive Officer, “ We are very pleased with the 65% growth in sales for the first nine months of this year. Our emphasis on enterprise level solutions combined with increasing order activity from our strategic sales partners is paying off. As a result, the average size of orders from our customers is increasing. We are also seeing growing interest in our products related to the Internet, with its increasing demand for rapid electronic access to stored information, which our products will provide.”

***

INSCI Corp (National NASDAQ: INSI) develops, markets and supports software for the automated document factory market including client/server electronic printing and document management software utilizing optical disk, CD and automated tape libraries to index, archive, retrieve and distribute computer-generated documents and scanned images including statements, reports, invoices and transaction data. The Company provides customers with an extensive range of system integration and consulting services based upon its expertise in integrated output management, electronic printing, imaging, document management, print-on-demand, data storage, data warehousing and data mining. The Company markets its products through a combination of direct sales force and marketing relationships with companies including Xerox Corporation, Unisys, Oce Printing (formerly Siemens Nixdorf Systems) and Storage Technology Corporation. The Company is headquartered in Westborough, Massachusetts. For more information about INSCI Corp, visit its home page on the Internet at http://www.insci.com.

###