CARLSBAD, Calif.--Oct. 25, 2001--Document Sciences Corporation today reported net income for the quarter ended September 30, 2001, of $196,118 compared with a net loss of $208,652 for the quarter ended September 30, 2000. Net income per share for the quarter ended September 30, 2001, was $0.05, based on 4,320,342 diluted shares outstanding, compared with a net loss per share of $0.02, based on 10,783,345 shares outstanding for the same quarter in 2000. Revenues for the quarter ended September 30, 2001, were $5.0 million, slightly up from the quarter ended September 30, 2000. Net income for the nine months ended September 30, 2001, was $568,024, or $0.09 per share based on 6,315,147 diluted shares outstanding, compared with a net loss of $177,615, or $0.02 per share based on 10,761,681 diluted shares outstanding, for the nine months ended September 30, 2000. Revenues for the nine months ending September 30, 2001, were $15.9 million, slightly up from the same period in 2000. Jack McGannon, Document Sciences' President and CEO, stated that, "We are reasonably pleased with our results for the quarter given the disruption caused by the terrorist attacks on September 11. Some deals that were scheduled to close in the third quarter were delayed as customers tackled internal issues.'' McGannon added, "Despite a slowdown in the overall economy, we will continue to focus on profitability while increasing our expenditures in research and development.'' "New versions of our Autograph(TM) software products, scheduled for release early next month, will continue our pattern of continuous software enhancement to provide customers with ever-increasing productivity and return on investment.'' The soon-to-be-released software includes: * CompuSet 8.0 -- The latest version of the Company's widely used composition engine brings speed enhancements for many customers. * Output Processing 2.0 -- The company's automated document distribution solution will provide comprehensive support for bar codes and Document Library Services(TM) (DLS) applications. * DLS 6.3 -- Document Sciences' regulated document and correspondence solution will include significant enhancements to the thin-client Web workflow interface, and a Power Paragraphs feature. * Visual CompuSet Professional Edition(TM) (VC Pro) 3.5 -- This Content Automation development tool for the integrated financial services industry will add major speed enhancements within its Document Designer, and a powerful new option, VC Pro Web Designer(TM), which allows document design teams to take their applications to the Web or e-mail without custom programming or duplicative design effort. Document Sciences will be demonstrating these new releases at the Xplor 2001 Conference in Orlando, FL, October 30 through November 1 in Booth No. 1163.