Document Capture Technologies Announces Initiation of Research Coverage by Murphy Analytics

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 an in-depth initiation report by Patrick Murphy CFA, principal of fee-based independent research firm Murphy Analytics.

Mr. Murphy expects DCMT will deliver net income of $0.10 per share for 2009, and initiates coverage with a 12-month price target of $1.50 per share.

"The corporate and business initiatives completed in 2008 have laid a solid groundwork for accelerated growth," said David Clark, Chief Executive Officer. "This comprehensive report quantifies DCT's progress to date, the outstanding potential for our industry-leading products and the robustness of the many large vertical markets on which our revenue growth is focused."

From the Report, Mr. Murphy states:

DCMT, which combined with its licensees, has shipped over 3 million scanners since inception, estimates that its market share, including the partners that license DCMT solutions, likely is greater than 70% for USB-powered lightweight mobile scanners.Driven especially by growing need and applications for the financial and healthcare markets, DCMT estimates a projected 2009 annual growth rate of approximately 25% for the portable page fed scanner market.Harvey Spencer Associates estimates the global market for document capture software alone is $1.7 billion.

The report details the significant growth projected in the mobile scanner market and the integral part that DCT's extensive proprietary Intellectual Property (IP) portfolio plays as a competitive advantage. The Company competes against several other companies, but appears, along with the IP advantage, to have a significantly more attractive cost structure. Mr. Murphy notes:

IT and imaging incumbents such as Oracle, EMC, HP, Epson, Kodak, and Fujitsu offer document capture solutions, but in terms of mobile document capture, the offerings from Digital Check and Panini are most comparable to DCMT solutions.As noted previously, these competing solutions can be several times more expensive.

Salient Points for Investors: (figures as at September 30, 2008)

Recent milestone contract with Qualcomm
Ongoing discussions/negotiations with several global OEM's
Company and licensees hold more than 70 percent market share
Positive EBITDA for the third consecutive quarter in 2008
Rising cash flow – $2.3 million year to date
Cash on hand $800,000. Working Capital $1.5 million
Debt-free balance sheet
Stringent cost controls, inventory management and strict focus on core businesses
Initiated expanded customer service and support group

DCT's commitment to product innovation has resulted in demand-driven products at the forefront of the paper-to-digital revolution. The proliferation of paper-to-digital green initiatives, high security demands and accelerated financial transactions require innovative ways to digitally capture, authenticate, store, share, and manage information.

The complete report is available in Acrobat format, free of charge:

[ http://www.murphyanalytics.com/uploads/DCMT_Initiation ]

About Document Capture Technologies

Document Capture Technologies (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.

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Document Capture Technologies Announces Initiation of Research Coverage by Murphy Analytics