OMTOOL DELIVERS 19% SEQUENTIAL INCREASE IN ACCUROUTE SOFTWARE LICENSE REVENUE AND UNVEILS ITS PLANS TO INCREASE ACCUROUTE INVESTMENTS

addition to the increases we previously planned for the legal vertical market in 2005, which included both increased investments and reallocations of existing sales and marketing resources from the legacy fax business to the AccuRoute legal market business.  We intend to continue our aggressive legal market expansion as planned.  Collectively these additional investments represent a planned increase of approximate 65% over 2004 sales and marketing expense levels.  While, to date, we have not focused our marketing or sales resources on vertical markets other than the legal vertical market, since its introduction, we have sold AccuRoute to three financial and five healthcare firms. With the additional investments now targeted at these vertical markets, our total target market for AccuRoute is expected to expand to over $1.3 billion during the next five years.”

Further, Voelk commented that “We have realized profits on our legal vertical market sales to date and we expect these revenues to grow over the next few years. However, the benefits provided by AccuRoute are applicable in almost any business sector and, with the continued establishment of strong positions in existing markets, we will look to expand our market opportunities by adding new vertical markets going forward.”

“We do not currently anticipate that today’s announced increased sales and marketing investments will produce a sufficient increase in sales over the balance of 2005 to offset the associated increase in expenses over the same period. Nevertheless, we believe that the growing profitability realized from our sales of AccuRoute in the legal vertical market and the profits derived from our legacy fax business will allow us to absorb most of these incremental investments without a significant loss for 2005 as a result of our broader market focus.  We are committed to making these investments now in order to position Omtool to accelerate its revenue growth during 2006 and beyond,” Voelk concluded.

About Omtool, Ltd.:
Omtool provides enterprise document messaging applications that streamline workflows, reduce costs and ensure secure, confidential e-document exchange. Omtool accomplishes this by integrating with industry-leading e-mail messaging, enterprise resource and document management systems to add secure delivery and high volume fax functionality to a company’s existing communication infrastructure. Because paper remains an integral part of many business processes, Omtool also provides technology that incorporates electronic delivery, security and billing functionality into industry-leading multifunction and scanning devices. Based in Salem, N.H., with an office in the United Kingdom, the company can be contacted at 800-886-7845 or www.omtool.com.

This press release contains forward-looking statements, including, without limitation, statements regarding the Company’s future financial and operating performance, customer interest in the Company’s Genifax^™ and AccuRoute^™ products, long-term sales strategy, distribution channels, strategic partnerships and the future plans of Company management. These forward-looking statements are neither promises nor guarantees, but are subject to risk and uncertainties that could cause actual results to differ materially from the expectations set forth in the forward-looking statements, including but not limited to, risks associated with expansion into new markets, the introduction of new product offerings, including the AccuRoute, Genidocs and Genifax software products; product concentration; the success of the Company’s channel sales strategies, business partner strategies and new marketing efforts; the continuation of market demand for fax-based software solutions; fluctuations in quarterly results of operations and seasonality of sales; listing of the Company’s Common Stock on the Nasdaq SmallCap Market; changes in the regulatory environment; the Company’s international expansion; acquisitions made by the Company and related integration challenges; the Company’s ability to obtain additional financing; the Company’s ability to manage growth; the quality of the Company’s internal controls over financial reporting and disclosure controls and procedures; the Company’s reliance on a sole hardware supplier; expiration of the Company’s lease for its headquarters space; dependence on continuing

growth in the number of organizations implementing secure electronic document exchange; competition; the Company’s ability to complete timely development and market acceptance of new products, including the AccuRoute, Genidocs and Genifax software products; product enhancements; the risks associated with reductions in staff; and those other risk factors described in the Company’s periodic reports and registration statements, as filed with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2005. We remind you that reported results in today’s call should not be considered an indication of future performance and that listeners to this call are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Omtool undertakes no responsibility to update any such forward-looking statements.

The consolidated statement of operations and condensed consolidated balance sheet follow.

Consolidated Statements of Operations

(In Thousands except Per Share Amounts)