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Docucorp® International (Nasdaq: DOCC), a leading provider of Customer Communication Management (CCM) solutions, today announced record first quarter revenues of $21.7 million for the quarter ended October 31, 2006, a four percent increase as compared to $20.8 million for the first quarter of the prior year. Net income increased 40 percent for the quarter to $765,000, or $0.07 per diluted share, compared to net income of $546,000, or $0.05 per diluted share, for the same period a year ago.

Compared to the first quarter of fiscal 2006, professional services revenue increased 11 percent to $6.0 million, maintenance revenue increased five percent to $5.6 million, and ASP hosting revenue increased two percent to $8.2 million. Software license revenue decreased eight percent to $1.9 million.

“Record first quarter revenues and a 40 percent improvement in profitability are a solid start for the fiscal year,” said Michael D. Andereck, president and chief executive officer, Docucorp International. “Our challenge and focus for fiscal 2007 is to increase software license sales.”

About Docucorp
Docucorp markets Customer Communication Management (CCM) solutions via a portfolio of information software, business process outsourcing and professional services, which enables companies to create, publish, manage and archive complex, high-volume, personalized information inhouse or fully outsource to Docucorp. The company has an installed base of more than 1,300 customers, including some of the world’s largest insurance, utility, financial services and health careorganizations. Headquartered in Dallas, Docucorp has facilities in Atlanta, Silver Spring, Md., Bedford, N.H., and London, as well as an international presence in the Benelux, Switzerland, Central and Eastern Europe, Middle East, Africa and Asia Pacific regions.

Certain information contained in this news release may include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, included herein are forward-looking statements. These statements involve risks and uncertainties, such as competition, technological developments, loss of significant customers and the other factors discussed in the Company’s periodic reports filed with the Securities and Exchange Commission, that could cause the Company’s actual results to differ materially from those expressed or implied by these forward-looking statements. Docucorp is a registered trademark of Docucorp International.