XSoft Receives Exclusive Distribution Rights to InContext Publishing
Software Outside North America

Xerox division expands its licensing rights to successful Windows-based
SGML software

PALO ALTO, Calif., February 28, 1994 -- XSoft, a division of Xerox
Corporation, and InContext Corporation, a Toronto-based pioneer in the
open information systems industry, today announced an agreement that gives
XSoft exclusive distribution rights to InContext's Windows-based
structured document publishing software outside of North America. XSoft
currently has non-exclusive distribution rights to carry the product in
North America through an agreement announced by the two companies last
year.

The product, also named InContext, enables users of Microsoft Windows-based
personal computers to quickly and easily create, edit, and manipulate
structured documents that support the Standard Generalized Markup Language
(SGML) on Microsoft Windows-based personal computers. XSoft has added
several compatibility and documentation enhancements and sells the product
under the name XSoft InContext.

The exclusive rights to sell the product outside of North America are
significant because of the growing worldwide demand for SGML solutions. A
powerful and functional standard, SGML has been difficult for
non-technical users to adopt because of its complex user interface. XSoft
InContext solves this problem by delivering the benefits of SGML
transparently, without the difficulty, complexity or expense of
traditional SGML products. Users do not need to know SGML in order to use
XSoft InContext, which is accessed through the familiar Windows user
interface.

Steven Kiser, XSoft vice president of development and general manager of
the company's publishing line of business, stated, "XSoft recently
commissioned a study by InterConsult which predicted that the SGML market
growth in Europe alone will exceed 30% per year for the next five years.
We are also witnessing strong growth in the Pacific Rim, Australia and
other areas of the world that are heavily funding the development of
structured document solutions. The extensive feature set of InContext,
combined with its exceptional ease of use and intuitive interface, make it
the ideal solution for these new users of SGML. With exclusive rights to
sell InContext in these markets, XSoft is very well positioned to address
this substantial and growing demand."

Robert Arn, president of InContext added, "From automotive to
telecommunications, more and more industries worldwide are adopting SGML
as the standard for structured document publishing. With the enormous
international distribution network of Xerox to carry our software into
these industries, we gain an immediate competitive advantage in reaching
potential customers. We are pleased to be aligned even more closely than
before with XSoft and Xerox through this exclusive distribution
arrangement."

InContext Corporation

InContext Corporation of Toronto, Canada, has just been acknowledged in the
March issue of Financial Post Magazine as one of the "top 25 up and coming
technology companies" in Canada, according to a leading industry
consulting group. Its mission is to be the leading supplier in the
emerging mass market of easy-to-use desktop SGML products for
non-technical users. A public company, InContext Systems Inc. is traded on
the Vancouver Stock Exchange under the symbol INI.

XSoft

Headquartered on a campus with PARC, the renowned Xerox research center in
Palo Alto, Calif., the XSoft division of Xerox provides software that
improves the way people create and use documents to capture, manage and
communicate ideas and information.

The company develops and markets a broad range of products that support its
vision of an Open Document Environment. They include document management
and workflow solutions, user-interface utilities, office productivity
packages, content-based search and retrieval systems, and
structured-document publishing applications. In addition, XSoft enables
workgroup collaboration through a series of shared document services
products. The company also offers extensive product support, training and
consulting services.

XSoft's products and services are available on multiple operating systems,
networks, and computer platforms. They are sold through a worldwide
network of direct sales and reseller partners.

XSoft
3400 Hillview Ave
Palo Alto, CA 94304
415-424-0111,  fax 415-813-7162

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