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Document Capture Reports Fourth Quarter and 2009 Year-End Financial Results

Fourth Quarter Revenue of $3.5 Million; Gross Profit Margin Sees Further Improvement With Positive Income and EBITDA

Document Capture Technologies, Inc. (OTCBB: DCMT), an IP-driven leader in the design, development and sale of next-generation mobile scanning technologies, today announced the availability of the fourth quarter and year-end financial results for the period ending December 31, 2009.

Document Capture reported Q4 2009 revenue of $3.5 million, compared to $3.1 million in Q4 2008. For the full year, revenue was $11.5 million, compared with $11.6 million in the year-ago period. Gross profit for Q4 2009 improved to $1.5 million compared to $1.2 for Q4 2008. For the full year, gross profit increased to $4.6 million, compared with $3.9 million in the year-ago period.

GAAP net income for Q4 2009 was $244,000 compared to a GAAP net income of $221,000 in Q4 2008. GAAP net loss for the full year was $261,000 compared to a GAAP net loss of $52,000 in the year-ago period.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $397,000 in Q4 2009 compared with $314,000 in Q4 2008.

"We ended the year and the quarter on a positive note," said David P. Clark, Chief Executive Officer. "Despite the economic downturn in 2009, we were able to expand our levels of service, and investment in R&D while tightly controlling costs to come away with strong sales, improved gross margins and positive net income and EBITDA in the most recent quarter. As we continue to strengthen our customized software and hardware development and focus on more feature-rich products, we believe that we are extremely well positioned for growth in 2010."

Fourth Quarter and 2009 Year-End Highlights

  -- $3.5 million in revenue, along with positive EBITDA and net income
     in Q4 2009.
  -- Increased gross profit margin rising to 43% in Q4 2009 and 40% full
     year 2009, up from 39% in Q4 2008 and 34% full year 2008.
  -- Working capital of $2.4M and current ratio of 3.0 to 1 at December
     31, 2009 compared to working capital of $1.8M and current ratio of
     2.3 at December 31, 2008.
  -- Hired key engineering talent with highly-experienced design
     backgrounds and a combined 35 years of technical experience.
  -- Remained committed to significant research and development efforts
     to extend technology leadership in the imaging technology markets.
  -- Increased customer service facility space and added international
     sales and marketing person to Amsterdam location.
  -- Executed agreements with Bridgeport, Digital Check and Burroughs
     (Unisys), and NCR Corporation to develop remote deposit capture
     services using DCT's "best of breed" USB-powered mobile terminals.
  -- Significantly reduced customer concentration of revenues.
  -- Introduced and began production shipments of our 3rd generation of
     duplex scanning models DocketPORT 488 and 488i.
  -- Began production shipments of our new DocketPORT 468 simplex scanner
     which offers major improvements in document handling and user
     interface.
  -- Amended existing credit facility during Q1 2010 to increase borrowing
     capacity by $500,000 to support anticipated growth.

Investor Conference Call

DCT will hold a conference call to discuss its financial results and growth for 2010 and beyond at 4:30 pm, Eastern Standard Time, on Wednesday, March 31, 2010.

Interested participants should dial 877-407-8035 when calling within the United States or 201-689-8035 when calling internationally. Please register for the conference call 10 minutes before the scheduled start time. There will be a playback available until April 14, 2010. To listen to the playback dial 877-660-6853 when calling within the United States, or 201-612-7415 when calling internationally and use Account number: 286, in conjunction with replay ID number: 347975.

This conference call is also available via webcast and can be accessed by visiting: www.docucap.com/domain_redirect/Q4_2009_financial_results_webcast.html

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, worldwide 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 unique products across five distinct categories, which are distributed globally through private label solutions to leading Tier 1 OEMs, VARs and other system integrators, including Burroughs (Unisys), Qualcomm, Brother, NCR and Punch Telematix.

For additional information, please see Document Capture's corporate website: www.docucap.com.

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.

* In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, DCT reports certain financial measures that may be considered non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States. DCT's management believes the non-GAAP financial information provided in this release is useful to investors' understanding and assessment of DCT's ongoing core operations and prospects for the future. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors.