Exhibit 99.1

                                                                    NEWS RELEASE

NEWS RELEASE FOR MAY 28, 2002 AT 7:30 AM EDT
Contact:   Allen & Caron Inc
                     Jill Cieslak (investors)
                     jill@allencaron.com
                     Len Hall (media)
                     len@allencaron.com
                     (949) 474-4300

                     INSCI ANNOUNCES NEW FINANCING AGREEMENT

                 Available Funds to be Used for Working Capital

WESTBOROUGH, MA (May 28, 2002)...INSCI Corp. (OTCBB: INSS), a leading supplier
of Electronic Statement Presentment (ESP), Integrated Document Archive and
Retrieval Systems (IDARS) and Enterprise Report Management (ERM) software,
announced today that it has obtained a secured asset-based financing arrangement
with Denver-based BeneFactor Funding Corp. for working capital. Under the terms
of the one-year arrangement, BeneFactor will offer financing on eligible
accounts receivable and related items which will afford additional funding for
the Company. This agreement replaces an earlier financing arrangement with Fort
Lee, NJ-based Prestige Capital Corp.

           Henry F. Nelson, President and CEO commented, "This agreement
includes the potential financing of maintenance accounts receivables which were
not eligible under our prior arrangement. It will increase our borrowing base of
collateral and provides a platform for the continued implementation of our
business plan."

           As a requirement of the new financing arrangement, a loan with the
Philadelphia-based Pennsylvania Business Bank, which is due on October 1, 2002
in the amount of $285,000, was repaid. In addition, all amounts owed to Prestige
Capital have also been satisfied.

ABOUT INSCI CORP.

           INSCI Corp. is a leading-provider of highly scalable digital document
repository solutions that provide high-volume document 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 documents. The Company has strategic partnerships
and relationships with such companies as Xerox, Moore and Unisys. For more
information about INSCI, visit WWW.INSCI.COM. For additional investor relations
information, visit the Allen & Caron Inc web site at WWW.ALLENCARON.COM.









There are statements in this news release that contain forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
These include all statements that are not statements of historical fact and
relate to the intent, belief, plans or expectations of INSCI, their management,
and their customers. Words like "plans," "intends," "believes," "signifies,"
"estimates," "anticipate," "will," "expect," and words of similar meaning are
intended to identify forward-looking statements. Actual results may vary
significantly from the forward-looking statements as discussed in detail in the
Company's filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year-ended March 31, 2001, and its Quarterly
Reports on Form 10-Q for the periods ending June 30, 2001, September 30, 2001
and December 31, 2001. Actual results, events and performance may differ
materially. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. The Company
undertakes no obligation to release publicly the result of any revisions to
these forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.

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