"This result did not surprise us given the tremendous adoption of our
xPression architecture that we've seen in the insurance space over the past
year," said Jack McGannon, President and CEO of Document Sciences.

Future Periods Guidance:
Salon does not believe that the quarter ending June 30, 2005 GAAP and non-
GAAP financial results should be considered predictive of future quarter or
year results. Salon's award-
winning journalism combines original investigative stories and provocative
personal essays along with quick-take commentary and staff-written Weblogs
about politics, technology, culture and entertainment.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)

Three Months Ended
June 30,
2005 2004

Net revenues $1,630 $1,733

Operating expenses:
Production and content 1,053 1,200
Sales and marketing 317 468
Research and development 184 135
General and administrative 211 228
Total operating expenses 1,765 2,031

Loss from operations (135) (298)
Other income (expense), net 19 (273)
Net loss (116) (571)
Preferred deemed dividend -- (593 )
Net loss attributable to common
stockholders $(116 ) $(1,164)

Basic and diluted net loss per share
attributable to common stockholders $(0.

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Some of these events or factors include the
following: (i) national, international , regional and local economic,
competitive, geopolitical and regulatory conditions and developments; (ii) the
markets for dynamic content publishing software; (iii) market acceptance of
enhancements to our existing products and introduction of new products;
(iv) continued profitability of our professional services; (v) maintaining our
relationships with our distribution partners and/or other risks detailed from
time-to-time in our SEC reports, including the report on Form 10-K for the
fiscal year ended December 31, 2004.1 Million, Compared to $1.2 Million Loss in
Prior Year Period

SAN FRANCISCO, Salon Media Group, Inc.
A reconciliation of net profit calculated in accordance with generally
accepted accounting principles in the United States of America (GAAP) and pro
forma net income (loss) is provided immediately following the consolidated
statements of operations below.4 - $1.
Salon has experienced a drop in overall membership, which has declined from
approximately 84,500 at March 31, 2005 to approximately 80,600 at June 30,
2005, primarily a result of greater emphasis being placed on serving
advertising units, rather than marketing the Premium membership service.

NOTE: Salon is a registered trademark of Salon Media Group, Inc.

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About Document Sciences Corporation
Document Sciences Corporation delivers real -time, dynamic content
publishing solutions that content-driven organizations depend on to realize
productivity benefits, cut costs, and increase competitiveness.
Salon forecasts that it will report a net loss for its quarter ending
September 30, 2005 and cannot accurately predict its results for future
quarters.08) $0.

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More information about the reports can be found
online at http://www.
(OTC Bulletin Board: SALN.
Salon anticipates that overall Salon Premium revenues will be
approximately $0. All
other company and product names mentioned are trademarks of their respective
owners.08) $0.

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Records Quarterly Net Loss of $0.

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S.com .

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Celent Names Document Sciences as Insurance Category Leader for Policies and Correspondence

docscience .

Salon Reports First Quarter Fiscal Year 2006 Results

0 million a year ago.01) $(0.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands , except share and per share amounts)

June 30, March 31,
2005 2005
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $301 $686
Accounts receivable , net 866 623
Prepaid expenses, and other
current assets 166 232
Total current assets 1,333 1,541
Property and equipment, net 189 191
Prepaid advertising rights 3,926 3,970
Goodwill 200 200
Other assets 170 167
Total assets $5,818 $6,069
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued
liabilities 633 788
Deferred revenue 947 1,047
Total current liabilities 1,580 1,835
Other long-term liabilities 134 82
Total liabilities 1,714 1,917

Stockholders' equity:
Common stock 15 15
Preferred stock -- --
Additional paid-in-capital 95,531 95,430
Unearned compensation (33) --
Accumulated deficit (91,409) (91,293)
Total stockholders' equity 4,104 4,152
Total liabilities and
stockholders' equity $5,818 $6,069

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Over 600
customers and partners use Document Sciences products in insurance, banking
and financial services, managed-care, telecommunications , utilities and
commercial print service bureaus. Salon believes that the presentation of pro forma
results provides useful information to management and investors regarding
underlying trends in its consolidated financial condition and results of
operations.

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S.01) $(0.01
Dilutive net profit (loss)
per share attributable
to common stockholders $(0.

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Based in Carlsbad, Calif. The decline in
advertising revenues is attributed to the departure of the VP of Advertising
Sales for an extended medical leave, and the corresponding short-term
reduction in staff to sell advertising on the Salon website. Due to seasonality, Salon estimates that total revenues for its
quarter ending September 30, 2005 will be $1.9 million of the total.00)

Weighted average shares
used in computing basic and
dilutive net loss per
share attributable to
common stockholders 15,132 15,132

(1) In accordance with accounting principles generally accepted in the
United States


SALON MEDIA GROUP, INC.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(Unaudited)

Three Months Ended
June 30,
2005 2004

Net loss attributable to common stockholders $(116) $(1,164)

Less:
Charges resulting from re-valuing
warrants issued in conjunction with operations -- 490
Utilization of prepaid advertising rights 44 150
Depreciation and amortization charges 21 94
Stock compensation charges 48 --
Preferred deemed dividend charge from
re-valuation of warrants issued to
preferred stockholders -- 398
Preferred deemed dividend charge
from issuance of preferred stock -- 195
Pro forma net profit (loss) attributable
to common stockholders $(3) $163


SALON MEDIA GROUP, INC.

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celent.OB), an Internet media company , announced today a
net loss attributable to common stockholders of $0.2 million in the prior year period.5 million for the quarter ending September 30, 2005,
approximately the same as the June quarter despite a decline in membership. We do not believe that our reported results should be considered
predictive of future period or full year results.08)

Weighted average shares used in computing basic
and diluted net loss per share 15,132 14,155


The accompanying notes are an integral part of these condensed
consolidated unaudited financial statements

SALON MEDIA GROUP, INC.

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"For the second year in a row, Document Sciences appears as a leading
provider," says Craig Weber, senior analyst for Celent and author of the
reports . and in London, Document Sciences also markets its
products in Europe, Australia, Canada, New Zealand , South America, Mexico and
Asia.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)

Three Months Ended
June 30 , 2004
As Reported (1) Adjustments Pro Forma

Net revenues $1,733 $-- $1,733
Operating expenses:
Production and content 1,200 (141) 1,059
Sales and marketing 468 (161) 307
Research and development 135 (8) 127
General and administrative 228 (41) 187
Total operating expenses 2,031 (351) 1,680

Profit (loss ) from operations (298) 351 53
Other income (expense), net (273 ) 383 110
Net profit (loss) (571) 734 163
Preferred deemed dividend (593) 593 --
Net profit (loss) attributable
to common stockholders $(1,164) $1,327 $163

Basic net profit (loss) per
share attributable to
common stockholders $(0.

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On a non-GAAP pro forma basis, excluding non-cash and non-recurring
charges, Salon recorded a near-breakeven three thousand dollar loss
attributable to common stockholders for the quarter compared to a profit of
$0. Readers of Salon's consolidated financial statements are advised
to review and carefully consider the financial information prepared in
accordance with GAAP contained in this press release and Salon's periodic
filings with the Securities and Exchange Commission. Factors that could cause actual
results to differ materially from those described herein include: the
economic environment of the media industry; the difficulty in securing on-line
advertising; growth in subscription revenue programs; uncertain revenue
sources and the general economic environment . Salon is under no obligation to and expressly
disclaims any such obligation to update or alter its forward-looking
statements, whether as a result of new information, future events or
otherwise .

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"
Celent's reports (one covering life/health insurance, the other
property/casualty) analyze 974 insurance deals from 107 software vendors that
occurred in 2003 and 2004. You can identify these statements by the fact
they use words such as "believe," "expect," "anticipate," "estimate,"
"project," "intend," "plan" or similar expressions.2 million for its first quarter the year before.
Total revenues for the quarter ended June 30, 2005 were $1. "Although we
managed a breakeven quarter, we failed to capitalize on the robust Internet
advertising market, primarily due to the temporary departure of a key
salesperson. Committed to
interactivity, the Website also hosts two online communities, Table Talk and
The Well, a user blogging program and recently added two popular features, the
daily music download column Audiofile, and the Daou Report, an opinionated
guide to the blogosphere.00

Weighted average shares used
in computing basic net profit
(loss) per share attributable
to common stockholders 14,155 14,155
Weighted average shares used
in computing dilutive net
profit (loss) per share
attributable to common
stockholders 14,155 160,602

(1) In accordance with accounting principles generally accepted in the
United States


SALON MEDIA GROUP, INC.

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For more information about Document Sciences Corporation, visit
http://www.
"Overall, we were disappointed in our first quarter fiscal year 2006
results," stated Elizabeth Hambrecht, Salon's CEO and President . Salon cannot predict total revenues after
September 30, 2005 owing to the relatively short time frame in which
advertising orders are secured and when they run on our Website and the lack
of significant long-term advertising orders. These statements are based on management's current expectations and
are naturally subject to uncertainty and changes in circumstances. Actual
results may vary materially from the expectations contained herein.

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Many possible events or
factors could affect our future financial results and performance.9 million from $1.6 million, with
advertising sales comprising $0.

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"The
teamwork of our organization has helped us reach this level of success.

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Weber notes that Document Sciences is named as a leading provider in
the policy and correspondence document categories for both Life and
Property/Casualty insurance. This could
cause our results or performance to differ materially from those expressed in
these forward-looking statements. We do not undertake , and specifically
disclaim, any obligation to update forward-looking statements.
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)

Three Months Ended
June 30, 2005
As Reported (1) Adjustments Pro Forma
Net revenues $1,630 $-- $1,630
Operating expenses:
Production and content 1,053 (60) 993
Sales and marketing 317 (47) 270
Research and development 184 (3) 181
General and administrative 211 (3) 208
Total operating expenses 1,765 (113) 1,652

Loss from operations (135) 113 (22)
Other income (expense), net 19 -- 19
Net loss (116) 113 (3)
Preferred deemed dividend -- -- --
Net loss attributable to
common stockholders $(116 ) $113 $(3)

Basic and dilutive net loss
per share attributable to
common stockholders $(0.

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Customers include more than 60 Fortune 500
companies .

About Salon Media Group, Inc.

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, with operations in Beijing, China and
offices across the U.6 million, a
decrease of 6% from $1.7 - $0.:
Founded in 1995, Salon is an Internet publishing company.

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We have recently added two salespeople to the team to fill a
short-term gap and build the team long-term," she continued. These pro forma measures are not in accordance
with, or an alternative for, GAAP and may be different from pro forma measures
used by other companies. Private Securities Litigation
Reform Act of 1995: This press release contains certain "forward-looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. More detailed information about
these factors is set forth in the reports filed by Salon with the Securities
and Exchange Commission.

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This press release may contain "forward-looking" statements about possible
or assumed future results of our financial condition, operations, plans,
objectives and performance .

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, Document Sciences
Corporation (Nasdaq: DOCX) announced today that it has once again been named
by Celent Communications as a leading provider in the company's "Insurance
Software Deal Trends " reports, which were published late last week.1 million for its first
quarter ended June 30, 2005 , compared to a net loss attributable to common
stockholders of $1.7 million a year ago, with advertising revenues
decreasing to $0. Currently,
Salon has $0.7 million of firm commitments to serve advertisements during the
quarter ending September 30, 2005.

"Safe Harbor" Statement under the U.

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CARLSBAD, Calif.com.


The
forward-looking statements contained herein include statements about future
financial and operating results of Salon.


SALON MEDIA GROUP, INC.

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Online Non-Fiction is for original non-fiction (Online Journals, Rants and News Columns ) which has been published on the Net.

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