SAN JOSE, Calif.--Document Capture Technologies, Inc. (OTCBB:DCMT - News), a leading designer and manufacturer of secure imaging solutions for OEM’s worldwide as well as one of the world’s largest manufacturers of private-label USB-powered mobile document scanners, today announced financial results for the third quarter ended September 30, 2008.

Despite a global economic slowdown and a marked decrease in IT spending, sales for the third quarter were $3 million, a slight decrease (8%) over the same quarter 2007. Most importantly, through this challenging time, management significantly increased cash flows from operating activities, which totals $2.3 million year to date; a six-fold increase over the same period last year. As well, the balance sheet was strengthened by the elimination of all short-term debt and a bank line of credit resulting in zero debt going into the fourth quarter and fiscal 2009.

“We continued to generate healthy cash flow in the quarter as we have in each quarter in 2008,” said David P. Clark, Chief Executive Officer. “We were able to pay off our short-term notes early as well as pay off our line of credit. The Company is debt-free and in excellent position to manage through the current economic downturn. We expect that our commitment to product innovations, providing high quality, value-added mobile scanning products, coupled with our lean cost structure, will enable us to grow the business and increase our cash as we head towards 2009.”

Third Quarter Financial Highlights

• Total operating expenses for the third quarter of 2008 decreased 31% to $1.0 million from $1.4 million in the year-ago period
• Total operating expenses for the nine months decreased 46% to $2.8 million from $5.3 million in the year-ago period
• Strengthened balance sheet through tight inventory control, cash management, and debt retirement
• Generated $2.3 million cash flow from operations for nine months ended September 30, 2008 compared to $0.4 million in year-ago period
• Generated positive EBITDA for the third consecutive quarter in 2008; $237,000 of EBITDA for the quarter ended September 30, 2008, up from $84,000 in the year-ago period; $949,000 of EBITDA for the nine months, up from $566,000 for the nine months ended September 30, 2007

As of September 30, 2008, the Company had cash or equivalents of approximately $800,000 and working capital of $1.5 million. The Company’s excellent financial position going into the fourth quarter and fiscal 2009 is due to management’s ongoing strategy of stringent cost controls, inventory management and a strict focus on core businesses.

Conference Call on Monday, November 17, 2008, at 4:30 PM ET:

Management will host a conference call to discuss the results on Monday, November 17^th at 4:30 pm Eastern. Interested investors may participate in the call by dialing toll free 877-407-9205. When prompted, tell the operator that you would like to connect to the Document Capture conference call. International investors may dial 201-689-8054. The call will be broadcast simultaneously via streaming audio at http://www.trilogy-capital.com/tcp/dcmt/conference.html.

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 approximately 45 key accounts, predominantly in North America and an intellectual property (IP) portfolio that includes multiple patents with additional 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, such as CardScan, Visioneer, and Pentax. DCT has steadily grown its business based on document capture-verification in the health care, law enforcement, insurance, financial, banking and compliance vertical markets.

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.