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INSCI ANNOUNCES STRATEGIC ALLIANCE WITH MIDWEST POWER FILES

INSCI Corp, a leading supplier of Electronic Statement Presentment (ESP), Integrated Document Archive and Retrieval Systems (IDARS) and Enterprise Content Management Solutions, has announced that it has signed a strategic marketing alliance with Kansas City-based Midwest Power Files, a storage systems solution firm with an established and diverse customer base.

Under the terms of the alliance, INSCI and Midwest will co-operate in the marketing and distribution of the INSCI ESP+ Solution Suite of products to Midwest's wide range of customers, which include local, state and federal government agencies, financial institutions, insurance companies, legal firms, medical practices, branches of the U.S. military and an expanding variety of manufacturing specialty corporations.

The agreement allows Midwest to expand its core technology offerings and both firms to create a new opportunity for generating revenue.

President and CEO Henry F. Nelson commented, "Our partnership with Midwest is an excellent example of the success of our recent efforts to grow our revenues through business alliances. Increasing and expanding our business alliances is a priority going forward. In support of this, we have promoted long-time INSCI employee Bob Harte to vice president of Business Development where he will focus exclusively on identifying and signing additional business partners for the purpose of increasing overall market penetration.

"This new focus will emphasize teaming with organizations such as Midwest, which already have a significant customer base in the lines of business where we have shown success, but have the potential to increase our market share," Nelson added.

About Midwest Power Files

Midwest Power Files, a Storage Systems Solution Firm, designs and implements improved Information Access for its clients with present and future growth in mind. As specialists in filing and storage solutions, Midwest shows companies how they can increase the workflow efficiency within companies' most vital resources. Midwest's comprehensive line of products include: File supplies and Cabinets, High Density Mobile Shelves, Bar Code Equipment and Tracking Systems, Document Imaging and COLD, and LAN Storage Systems. For more information about Midwest, visit www.midwestpowerfiles.com.

About INSCI Corp

INSCI Corp is a leading-provider of highly scalable digital repository and enterprise content management solutions that provide high-volume digital asset presentment, preservation, and delivery functions via networks or the Internet. Its award-winning products bridge value documents with front-office mission critical and customer-centric applications by web-enabling legacy-generated reports, bills, statements and other forms of digital information. The Company has strategic partnerships and relationships with such companies as Xerox and Unisys. For more information about INSCI, visit www.insci.com. For additional investor relation's information, visit the Allen & Caron Inc Website at www.allencaron.com.

Contact: Stephen Graziani of INSCI Corp, 508-870-4000, sgraziani@insci.com.