For Immediate Release
Contact: Roger Kuhn
INSCI Corp
(508) 870-4014

INSCI Corp Announces Financial Results for First Quarter of Fiscal Year 1997

WESTBOROUGH, MA - AUGUST 14, 1996 - INSCI Corp (NASDAQ: INSI) today announced its results for the first quarter of fiscal year 1997.

INSCI Corp announced that it had achieved record sales of $2,936,000 for the quarter ended June 30, 1996, the first quarter of its 1997 fiscal year. Additionally, net income for the quarter was $95,000, a significant increase over the net loss of $1,655,000 reported in the same period last year. The quarter ended June 30, 1996, represents the fourth consecutive quarter that INSCI has achieved earnings before non-recurring charges and interest.

Revenues of $2,936,000 increased by $2,095,000, a 249% growth over the $841,000 reported in the first quarter last year. This growth was principally attributable to increased emphasis on sales to key accounts and larger customers, combined with a ramp up of the Company's consulting and systems integration activities. This quarter's revenues also included sales from INSCI's new Courtland Imaging Division, which was acquired in March, 1996.

Net income of $95,000 increased $1,750,000 from the net loss of $1,655,000 reported in the same period last year. Although there were planned increases in various expense categories, the earnings increase was primarily attributable to the record sales growth compared to the same period last year. Dr. E. Ted Prince, Chairman and CEO, said that one of the Company's primary goals for fiscal year 1997 is to continue its earnings momentum and, in that vein, it has achieved its first quarterly benchmark.

The first quarter included the announcement of new agreements with several new and existing customers including Siemens Nixdorf Printing Systems, Barclays Bank, MCI and Piper Jaffray. In addition, marketing alliances were established with several companies including Xerox and NEPS.

***

INSCI Corp develops, markets, and supports client/server electronic printing and document management software utilizing optical disk and CD storage technology to index, archive, retrieve, and distribute computer-generated documents and scanned images including statements, reports, invoices, and transaction data. INSCI also sells print-on-demand software for the automated document factory market. The Company provides customers with an extensive range of system integration and consulting services based upon its expertise in integrated output management, electronic printing, print-on-demand, data storage, data warehousing and data mining. 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.

Financial Summary

INSCI Corp
Summary Financial Results
First Quarter of the 1997 Fiscal Year
(in thousands, except per share amounts)

For Quarter Ended June 30,