William Zastrow President, CEO FileMark Corporation May 8, 2008

1. Document Solutions Top 10 Things You Should Know about Today’s Document Management Solutions William ZastrowPresident, CEOFileMark Corporation May 8, 2008

2. Startling Facts….. elimination of inefficient paper processes allows more work to be done faster, with fewer people, and less cost # 1

3. The Inefficiencies of Paper • The typical office worker spends 6 weeks a year looking for documents • It takes 7 minutes to find a paper file, but only 2-4 seconds to find a file electronically • Each file retrieval costs $1.40 vs. $ .01 for a 3 second electronic retrieval (@ $12/hr) • Cost to find a misfiled document: $120 • Cost to recreate a lost document: $250 Source: AIIM and ARMA

4. Application Fit….. great demo, but will it solveour business problems? # 2

5. What are your Business Problems? • Eliminate paper-based filing, retrieval, copying and routing costs? • Transition from paper to electronic documents, processes, distribution and storage? • Get instant access to documents from anywhere, from any type of application? • Process documents faster with paperless workflow automation? • Fulfill legal and regulatory compliance mandates? • Capture, distribute and archive computer output reports? • Archive corporate eMail? • Automate forms processing for data entry? • Create and edit Office documents? • Publish and update websites? • Provide a self-service web portal?

6. Don’t Confuse Collaboration with Archiving and Transaction Processing….. a square peg will never fita round hole # 3

7. Collaborative EDM • Revisable content • Word, Excel, PowerPoint • Web content • Contracts, agreements, reports, memos, documentation • Group editing, approval routing, check in/out, versions • Content search • Many casual users • Law, Pharmaceuticals, Government, Engineering, Consulting, Advertising, Publishing Transactional/Archival EDM • Fixed content • Images, forms, fax, eMail, computer output reports • Invoices, statements, checks, proof of deliveries, bills of lading • Evidentiary business records • Transaction processing workflow, e.g. accounts payable, accounts receivable • Index queries, LoB app integration • Few production workers • Manufacturing, Distribution, Healthcare, Financial Services, Transportation, Education

8. Focus on Capture Technology ….. the most labor-intensive component of Document Management # 4

9. Document Capture Technologies • Zone OCR (Optical Character Recognition) for fixed forms • High volume Forms Processing and Data Collection • Point and Shoot OCR for freeform • Intelligent OCR with attribute matching and dictionary lookups • Auto-Indexing with database lookups, screen scraping and defaults • Full page OCR for text search • Barcode Recognition • Optical Mark Reading • Distributed Indexing • Computer Output Capture (COLD) • Bulk eMail Archiving for compliance • Save directly from MS Office and Outlook • The universal filing basket • Batch Import

10. SimpleIndex Automatic Zone OCR

11. When Workflow Doesn’t Work….. it happens more often than you think # 5

12. Why Workflow Doesn’t Work • For most applications, the concept of traditional rules-based workflow is fundamentally flawed • Too complex to build and inflexible in use • Too expensive and time consuming to deploy, maintain, change and/or grow • Most workflow deployments try to do too much

13. BPE is Daunting “Business ProcessRe-Engineering”

14. Rules-Free Workflow • Paperless ad hoc document routing – for approvals, transaction processing, collaboration or automatic distribution • Simple configuration – like instant messaging for documents with a buddy list • Automates existing business processes, no rules, users still make most decisions, no BPR • Includes ad hoc routing, secure work queues, running case notes, eForms, notification, deadlines, escalation, audit trails • Out-of-box deployment can resolve over 80% of process inefficiencies – paperless and instantaneous • Rapid implementation = quick ROI = success • Knowledge worker empowerment, not rigid rules enforcement

15. Case Notes Accounting Shipping/Receiving Supervisor √ Accounts Payable Complete Pend Canel NA Clear Case Notes Workflow View Administration Windows Help Case Notes Accounting Shipping / Receiving Supervisor √ Accounts Payable Complete Pend Cancel NA

16. Application Integration….. access information in context directly from your business applications # 6

17. Screen OCR Auto-Find Copy / Paste OCR OCR Auto-Fill XYZ100 Invoice Type Copy / Paste $16.50 Invoice Amount Auto-Fill Auto-Index

18. Host Application Integration

19. Desktop Application Integration

20. Plan Ahead for Records Management….. its not just about regulatory compliance # 7

21. Records Management (RM) Definition • Policies, practices, technologies and management controls to protect legal interests and comply with regulations • Information lifecycle management – retention, disposition rules • Complete audit trails • Authentic, permanent, unalterable records • Systematic controls to ensure record authenticity, security and process consistency

22. Regulation Finance Insurance Banking Health-care Pharmac-eutical Manufact-uring Notes Sarbanes-Oxley* X X X X X X * Affects all public companies HIPAA* X X * Affects benefits dept of all companies, and schools SEC 17A-4 X 21 CFR Part 11 X Basel II X X California SB 1386 * X X X X X X Affects any business doing business with a CA resident US Patriot Act X X X Gramm-Leach-Bliley X X Examples of Industry Regulations

23. Sarbanes/Oxley RM Compliance Simplified • Capture all business transactions, eMails and correspondence – no exceptions • Store it twice – keep one copy on non-erasable media • Validate records as genuine • Enforce prescribed 7-year retention period • Provide fast, easy access to records for first 2 years • Keep information secure • Delete systematically, and then only according to official retention rules • Maintain accurate, detailed audit trails Source: IBM

24. What’s Needed For RM? • File plans • Classification • Universal record capture and indexing • Declaration • Rules-based record retention, disposition, migration and disposal schedules, holds • Activity logs and reporting • Support for non-rewriteable, non-erasable document storage • User/group document access control

25. Automated Bulk eMail Archiving DatabaseServer Auto-Index Receive Archive Send

26. Software Licensing Options….. the world has changed # 8

27. Software Licensing Models • Named users • Concurrent users • Site licenses • Open Source software • Shareware • Freeware • Software as a Service

28. New uses for Computer Output Reports….. COLD is still hot # 9

29. Computer Output to Low-cost Disk / Enterprise Report Management Automated computer output capture and archiving Eliminates printing and manual distribution of internal reports Saves the cost of printing, paper, ink, microfilm, copies, multi-part forms and postage Instant access to exact replicas of printed reports, statements and invoices from anywhere Data mining, reports from reports COLD/ERM

30. Automated Computer Output Archiving Database Server Print Streams Capture  Host Print Reports, Invoices, Statements

31. What’s New with COLD/ERM? • Automatic report indexing – metadata and full text • Automatic report distribution – workflow, eMail, remote print • Exact replicas – embedded formatting, form overlays • Embedded barcode generation – PODs, remittances • eStatements – eMail links, secure web access • Data mining – custom reports, data extraction, sorting, calculations, graphs and charts • Report reformatting for efficiency – format compression, custom filtering, faxing, remote printing • Support for graphical print formats – AFP, Metacode, DJDE, PCL, Postscript, PDF, XML, EDI, eMail • Data conversion – PDF, XML, HTML, XLS, CSV, easy web access, long term archiving standards, full text search, application compatibility

32. Out with the Old, In with the New….. you can get there from here # 10

33. Legacy System Documents • Day-forward document capture – forget the old • Backfile conversion – migrate the old • Live legacy system link – remote access to the old when needed • Live content integration – coexist with the old OLD NEW

34. FileMark Corporation • Software developer, professional services provider, direct sales and technical support • Technology Focus – affordabledocument capture and archiving, transactional document processing, records management • Founded in 1989, based in Millbury MA

35. Document Solutions Transforming Business Documents into Web-enabled, Integrated Information Assets www.filemark.com 508-865-4844