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Document Capture CEO David P. Clark Releases Letter to Shareholders

^{Published on 2008-12-12 14:52:22 - Market Wire}
 

SAN JOSE, Calif.--([ BUSINESS WIRE ])--Document Capture Technologies, Inc. (OTCBB: DCMT), an IP driven worldwide leader in the design, development, manufacture and sale of USB-powered mobile page-fed document scanners for OEM's, VAR's and system integrators, today announced the release of a shareholder letter from David Clark, Chief Executive Officer.

Fellow Shareholders:

As we look toward 2009, I come to you at what is likely the most exciting time in Document Capture's history. We've streamlined our business model to focus exclusively on our industry-leading USB powered document scanner products, signed major agreements with large, internationally-recognized customers, repaid our debts in full and are generating cash as we aggressively protect and expand our patent portfolio.

The majority of our business is integrating and augmenting existing technology or producing products under the banner of our client companies, with Qualcomm as the most recent example (which I will speak to presently). You'll likely never see our name on our mobile scanners or any of our other products. Therefore, the added benefit for us is that our success is directly tied to an elite group of primarily larger companies possessing the resources needed to compete in the retail and business-to-business channels. Frankly, that's a great place to be and do business, as it allows us to focus on our core competency: designing and manufacturing the very best USB-powered mobile document scanners available.

As 2008 closes and we finish up our Q4, we approach 2009 and beyond with an outstanding outlook and balance sheet. Our management team achieved a debt-free status for the Company while setting in motion strategies that consistently built our cash flow. At September 30^th, 2008, we found ourselves:

• Debt-free balance sheet
• Cash or equivalents of $800,000
• Market share between the Company and our licensees exceeding 70 percent
• Cash flow exceeding $2.3 million
• Concluded deals with major technology companies and confidence of more to come.

Recently, we inked a deal with tech giant Qualcomm through its Omnivision Transportation Services division to supply our scanners for its in-cab management system. The DCT in-cab truck solution facilitates the digital capture and processing of various types of paperwork involved in trucking/shipping transactions, including mileage reports, bills of lading and other critical information, directly resulting in improved productivity and profitability.

As our President, Bill Hawkins noted recently in our milestone announcement with Qualcomm: "The successful conclusion of our year-long pilot program and resulting purchase agreement validate our latest product designs and expands our distribution channel in the transportation market. We look forward to a long and mutually beneficial relationship with Qualcomm."

As noted, we are confident more high-quality agreements such as the one with Qualcomm are on the horizon as we continue to add to our already impressive client list.

I would like to discuss our robust and growing Intellectual Property (IP) portfolio. A key aspect of our business, our IP portfolio ensures that we maintain a leadership position and protect our products and R&D for the benefit of our shareholders. With more than 25 domestic and international patents granted with 3 more pending, we intend to aggressively add to and defend this asset into 2009 and beyond.

Finally, I would be remiss not to discuss the current economic climate. The economy continues to impact many of the sectors in which we sell, namely, the financial and health care sectors. That said, we have carefully positioned the company to benefit from positive trends in various sectors including the rapid growth in remote deposit capture as it's related to the Check 21 legislation in addition to other paper to digital initiatives.

We firmly believe that each of the sectors that we serve will rebound strongly within the next 12 to 18 months. In preparation, we're executing our aggressive plans to provide new and innovative products and software solutions to service the expected demand.

I appreciate the interest and support of our current and potential shareholders and look forward to speaking to you again soon to relate our ongoing progress and outstanding potential.

Until then, kindly visit our site at [ www.docucap.com ] for the latest news and corporate initiatives.

Sincerely,

David P. Clark, Chief Executive Officer

Document Capture Technologies Inc.

About Document Capture Technologies

Document Capture (DCT) is a worldwide leader in the design, development, manufacturing, and sale of USB powered mobile page-fed document capture solutions. Its vertical integration and innovative proprietary system development kits allow for a broad range of applications, faster time-to-market and ease of integration for its customers.

DCT has more than 45 key accounts, predominantly in North America and a growing intellectual property (IP) portfolio that currently numbers more than 25 granted domestic and international patents as well as 3 pending. DCT maintains an aggressive IP strategy to defend its technology and market leadership position.

DCT provides more than 30 different products across five distinct categories, which are distributed globally through private label solutions to leading Tier 1 OEMs, VAR's and other system integrators, including Qualcomm and Brother.

DCT has steadily grown its business (37% three-year organic CAGR) in the health care, security, financial and compliance vertical markets. The company and its licensees currently enjoy greater than a 70% share of the USB-powered mobile scanner market.

Forward-Looking Statements

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond the Company's control that could cause actual events and results to differ materially from these statements. These risks include, without limitation, that there can be no assurance that any strategic opportunities will be available to the Company and that any strategic opportunities may only be available on terms not acceptable to the Company. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Document Capture undertakes no obligation to update publicly any forward-looking statements.