NEWS RELEASE
                                    Contact: Dan Luebben, CFO
                                             800-776-6939 Ext. 1504
                                             mailto:del@auto-graphics.com


                Auto-Graphics, Inc. Announces Deregistration


Pomona, CA: Auto-Graphics, Inc. (OTCBB: AUGR) reported today that the
Company has filed a Form 15 with the Securities and Exchange Commission
("SEC") to terminate the registration of its common stock under Section
12(g) of the Securities Exchange Act of 1934 and suspend its reporting
obligations under Sections 13 and 15(d) of the Act.  The termination is
expected to become final within 90 days subject to SEC approval.

The Company is taking this action for a number of reasons.  The primary
reason is to reduce the costs and burdens associated with being a "reporting
company" under the 1934 Act, including those arising under the provisions of
the Sarbanes-Oxley Act of 2002.  After serious consideration, the Board of
Directors concluded that the advantages of being a reporting company under
the 1934 Act do not offset the costs, both direct expenses and indirect
costs in the form of management time, associated with the SEC reporting
requirements.  Other factors considered as part of this decision were: (i)
the Company's common stock is very thinly traded, (ii) the company receives
no capital raising benefit from being a reporting company, and (iii) the
company believes it suffers a competitive disadvantage because as a
reporting company it is required to disclose competitive information that
competitors, which are not reporting companies, do not have to disclose.

Robert Cope, Chairman of the Board, made the following comment:  "The costs
of remaining a reporting company outweigh the benefits to our company and
our stockholders.  Due to our small market cap and small number of
stockholders, we have not enjoyed many of the traditional benefits of being
a reporting company.  We believe that the cost reductions associated with
suspending our public filing obligations will make us more profitable and
bring more value to our stockholders."

The Company comfortably met the requirements for deregistration having 218
holders of record of the Company's common stock as of May 17, 2004 and total
assets of under $6.0 million for the prior three fiscal years.  To qualify,
holders of record must be either under 300, or under 500 with total assets
for the prior three fiscal years of under $10.0 million.

The Company's common stock will no longer be quoted on the OTC Bulletin
Board because of the requirement to file SEC reports following a 30-60 day
grace period.  The Company expects that similar market information will
continue to be reported on the Pink Sheets LLC at http://www.pinksheets.com.
The Company plans to provide market makers with the information required
under SEC Rule 15c2-11 to facilitate quotation on the Pink Sheets.  The
Company currently plans to continue to provide its shareholders and
interested investors with regular unaudited quarterly and audited annual
financial reporting.  The Company believes that at least some of the
brokerage firms which have historically facilitated an orderly market in the
Company's common stock will continue to do so subject to the Company's
commitment to provide regular financial reporting, however, there can be no
absolute assurance that this will be the case.

Auto-Graphics provides applications software and Web hosting services to
clients who create, manage, publish and access information using the
Internet.  Visit www.auto-graphics.com for additional information.

The Company wants to provide stockholders and investors with meaningful and
useful information.  Therefore, this press release may contain forward-
looking information, describing the Company's belief concerning future
events or business conditions, and the outlook of the Company based on
currently available information.  These forward looking statements are
subject to risks and uncertainties which could cause actual events or the
Company's actual results or performance to differ materially from those
expressed in these statements.  Readers are encouraged to read the Company's
Annual Report on Form 10-KSB and its other reports filed with the Securities
and Exchange Commission for a more complete description of these factors.
The Company assumes no obligation to update the information contained in
this press release.

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