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                                                                    EXHIBIT 99.1

THIS SETTLEMENT AGREEMENT is made this 20th day of April, 1998, by and between
Lasertechnics Inc., a Delaware Corporation with offices at 3208 Commander Drive,
Carrollton, Texas (LASX) and Xerox Corporation, a New York Corporation with
offices at 3400 Hillview Road, Palo Alto, California (Xerox) to resolve a
dispute regarding that certain agreement between Sandia and Xerox dated January
12, 1995, as the same has been previously amended by Agreement dated December
27, 1996 (hereinafter, collectively, the "Prior Agreement") and that certain
Promissory Note made by LASX in the favor of Xerox, in the principal sum of
$2,100,000 and dated December 26, 1996 (hereinafter the "Note").

WHEREAS the parties have mutually agreed to resolve certain outstanding business
issues between them related to the Prior Agreement and the Note upon the terms
and conditions set forth in this Settlement Agreement; and

WHEREAS the parties have agreed as set forth in this Settlement Agreement;

NOW, THEREFORE, it is agreed by and between the parties as follows:

1. PRIOR AGREEMENT: Except as modified by this Settlement Agreement, all of the
terms and conditions of the Prior Agreement (and all amendments thereto entered
into prior to the date of this Settlement Agreement) shall remain in full force
and effect, and the parties hereby ratify such Prior Agreement and their
obligations thereunder.

2. Immediately upon execution of this Settlement Agreement, Xerox shall
discharge the Note referenced above (including all interest previously accrued
thereupon) and the payment obligation of paragraph 3.1 of the December 27, 1996
amendment to the Agreement , and such Note and payment obligation shall be
without further force or effect.

3. LASX shall, upon execution of this Agreement by the parties, immediately pay
to Xerox the sum of One Million Four Hundred Seventy Thousand Dollars
($1,470,000) in the form of cash, a cashier's check or other payment method
acceptable to Xerox.

4. LASX shall issue to Xerox One Million Eight Hundred Thousand Shares of its
common stock on a pre-split basis upon execution of this Settlement Agreement.
The parties acknowledge that all reference herein to shares of LASX refer to
voting common stock of par value of $0.01 per share of LASX before giving effect
to the proposed reverse stock split. Such shares shall be in 
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addition to those certain Six Hundred Thousand (600,000) shares of such LASX
commons stock currently held by Xerox in escrow under the Prior Agreement and
Note. Such escrowed shares shall be reissued by LASX in the name of Xerox
Corporation and share certificates for the total of Two Million Four Hundred
Thousand shares of the pre-split common stock of LASX shall be delivered to
Xerox or its nominee as soon as practicable. All share certificates evidencing
the shares set forth in this paragraph shall contain the following restrictions
and legend: (a) Xerox shall not be entitled to sell any of such shares to any
third party until December 1, 1999 or such time as LASX (or its subsidiary,
Sandia) shall first deliver a product for sale, rental or license (other than a
demonstration unit) to any customer containing or embodying in any manner the
glyph technology of Xerox (whether provided under the Prior Agreement or by
subsequent agreement between LASX and the Intran or any other business unit of
Xerox), whichever shall first occur, (b) in no event shall Xerox dispose of more
than 240,000 shares (pre-split) in any calendar month, and (c) LASX shall at all
times have the right, upon notice to Xerox, to repurchase any shares then still
held by Xerox at the agreed purchase price of $0.325 per share.

5. In addition to the foregoing, LASX shall pay to Xerox the sum of Four Hundred
Thousand Dollars ($400,000) upon the following event, should such event occur at
any time: the delivery of a product for sale, rental or license (other than a
demonstration unit) by LASX or Sandia which contains, is derived from or
embodies in any manner the glyph technology of Xerox (whether provided under the
Prior Agreement or by subsequent agreement between LASX/Sandia and the Intran or
any other business unit of Xerox). Such payment shall be in addition to, and not
in derogation of or substitution for, any royalties that would otherwise be
payable to Xerox under the terms of the Prior Agreement subject to Section 7 and
8 of this Settlement Agreement.

6. Notwithstanding anything in the Prior Agreement to the contrary, Xerox shall
be released from the obligation to provide Sandia and LASX the 30% of one
dedicated person resource full time for the support of the glyph technology
previously provided to Sandia under the Prior Agreement. LASX and Sandia may
contract, under a separate agreement to be negotiated by the parties for such
additional or other support for glyph technology or new or other glyph
technology as the parties shall deem appropriate. Xerox will lend its reasonable
support, without cost to Sandia, to enable Sandia or LASX to meet with the
Intran business unit for the purpose of Intran engaging Sandia or LASX as a
customer, but shall have no other obligation other than attempting to arrange
such a meeting. In the event Sandia enters into an agreement with the Intran
business unit, the Intran business unit shall assume all responsibility for the
business relationship with Sandia/LASX. In the event Sandia/LASX does not enter
into an agreement with Intran, the relationship will remain between the 


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existing parties. The parties to this Settlement Agreement acknowledge that the
sums set forth above do not constitute nor entitle Sandia or LASX to services
provided by Intran or any other business unit of Xerox, which shall be the
subject of a separate agreement between those organizations. LASX and Sandia
acknowledge and agree that nothing set forth in this Settlement Agreement
entitles it to any other or additional glyph technology from Xerox unless it
contracts with the Intran or any other business unit of Xerox for same, except
as expressly set forth in Section 7 of this Settlement Agreement.

7.  Notwithstanding paragraph 6 above, Sandia shall be given, without additional
payment to Xerox other than those set forth in this Settlement Agreement, the
Intran Data Glyphs Software Developers Toolkit for one of the supported
platforms upon execution of the Intran standard developer evaluation agreement,
which agreement will allow Sandia the full access to and use of all Intran data
glyph technology provided by such toolkit for internal evaluative purposes only,
until such time as Sandia/LASX delivers a LASX/Sandia product which contains, is
derived from or embodies such glyph technology (other than a demonstration unit)
by means of sale, rental or license, at which time the provisions of sections 5
and 8 of this Settlement Agreement shall apply. Any work required by LASX/Sandia
from Intran other than as set forth in this paragraph and in the standard Intran
developer evaluation agreement, such as modification, porting or support of the
Data Glyphs Software Developers Toolkit, will be negotiated by the parties in
accordance with paragraph 6 of this Settlement Agreement.

8.  LASX/Sandia shall pay to Xerox the royalties set forth in the Prior 
Agreement in the event, at any time, delivers for sale, rental or license a
product (other than a demonstration unit) containing, derived from or embodying
in any manner the glyph technology which is the subject of the Prior Agreement.
The parties agree, however, that if such product of LASX or Sandia contains, is
derived from or embodies in any manner, any glyph technology obtained from the
Intran or any other business unit of Xerox under a separate agreement between
those parties, no royalties shall be payable to Xerox under Exhibit A of the
Prior Agreement, and the only royalties for which LASX and Sandia shall be
liable beyond those payments described in this Agreement shall be those set
forth in such separate agreement between LASX/Sandia and Intran or any other
business unit.

9.  Except as expressly set forth in this Settlement Agreement, all other terms
and conditions of the Prior Agreement shall remain in full force and effect.

10. This Settlement Agreement sets forth the full and complete understanding of
the parties with respect to the subject matter hereof, and all prior
discussions, 


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documents and representations of either party shall be merged
herein (except as set forth in otherwise unmodified provisions of the Prior
Agreement). 

11. This Settlement Agreement shall be interpreted and construed in
accordance with the law of the State of California, without regard to its
conflict of laws rules.

IN WITNESS WHEREOF, the parties have executed this Settlement Agreement on the
date first above set forth.

XEROX CORPORATION                           LASERTECHNICS, INC.

By: /s/                                     By: /s/
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Title:                                      Title:
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