Organic Growth Exceeding 30 Percent Driven by Strong Performance in Speech Business and Successful Launch of ScanSoft OmniPage 15

BURLINGTON, Mass., December 6, 2005 – Nuance Communications, Inc. (Nasdaq: NUAN), formerly ScanSoft, Inc., today announced financial results for the fourth quarter ended September 30, 2005. On October 18, 2005, the Company changed its name from ScanSoft, Inc. to Nuance Communications, Inc. and on November 21, 2005, the Company changed its ticker symbol from “SSFT” to “NUAN”.

Nuance reported fiscal fourth quarter revenues of $61.9 million, a 47 percent increase over revenues of $42.0 million in the quarter ended September 30, 2004. Nuance recognized a net loss of $7.7 million, or $0.06 per share, in the quarter ended September 30, 2005 compared with a net loss of $6.2 million, or $0.06 per share, in the comparable period 2004. These GAAP figures include revenues and expenses associated with the acquisition of the former Nuance for the period following September 16, 2005.

In addition to using GAAP results in evaluating the business, management also believes it is useful to evaluate results using non-GAAP measures. Using a non-GAAP measure, Nuance reported revenues of $59.8 million for the quarter ended September 30, 2005, a 42 percent increase over revenues of $42.0 million for the same period 2004. Nuance reported non-GAAP net income of $7.4 million, or $0.06 per diluted share, for the period ending September 30, 2005, compared to a net loss of $300,000, or breakeven per share, in the same period 2004.

These non-GAAP figures exclude revenues and expenses associated with the acquisition of the former Nuance for the period following September 15, 2005; Nuance-related restructuring and other charges; and as applicable, non-cash taxes, interest and stock-based compensation, amortization of intangible assets, and other charges. See “GAAP to non-GAAP Reconciliation” below for further information on the Company’s non-GAAP measure.

“The Company had a solid finish to the year, producing strong organic revenue growth of more than 30 percent in the quarter and experiencing strong performance across nearly all major product areas,” said Paul Ricci, chairman and CEO, of Nuance. “Our sustained operational performance, strong revenue growth and an increasing demand for our speech solutions provide us with confidence and momentum as we begin fiscal 2006, determined to extend our market leadership, provide value to our customers and deliver results to our shareholders.”

Consistent with the Company’s strategy and recent trends, highlights from the quarter include:

• Robust Performance in Network Speech – The Company generated strong revenue from its network speech technologies, applications and services, benefiting from new and expanded agreements with leading businesses and telecommunications providers, including Cox Communications, Empire Blue Cross Blue Shield, the Social Security Administration, T-Mobile, Verizon Wireless and Wal*Mart.
  
  
• Demand for Dictation Solutions – The Company saw continued demand and significant growth for its Dragon Dictation Solutions. Through its Dragon NaturallySpeaking and Dragon MT Workflow, Nuance continued to generate customer demand in its core markets and secured a number of volume license agreements both in North America and internationally as organizations, especially in the healthcare and legal fields, experience the value these speech recognition solutions provide.
  
  
• Design Wins for Embedded Speech – Nuance continued to secure important design wins with automotive and handset manufacturers as they utilize speech to differentiate their offerings and meet growing demand for improved interfaces. In particular, the Company believes handsets present opportunities for growth and in the quarter signed agreements with Kyocera, Nokia, Samsung and Tegic, a subsidiary of AOL.
  
  
• Expanded Speech Portfolio – The Company completed the acquisition of the former Nuance, bringing together the industry’s most comprehensive portfolio of speech applications, technologies and expertise that will enable customers to effectively deploy innovative speech-based solutions. As a result, the Company has the technical resources and intellectual property required to develop new and innovative speech solutions that deliver enhanced value to customers.
  
  
• Successful OmniPage Launch – The August 2005 launch of ScanSoft OmniPage 15, the world’s most popular optical character recognition (OCR) and document conversion software, contributed to the strong performance for the Company’s imaging products. The success of OmniPage 15 is due in large part to significant enhancements to the features that matter most to OCR users – accuracy and speed.

Nuance to Host Quarterly Conference Call and Webcast

In conjunction with today’s announcement, Nuance will broadcast its quarterly conference call over the Internet at 4:30 p.m. ET. Those who wish to listen to the live broadcast should visit the Investor Relations section of the Company’s Web site at www.nuance.com at least 15 minutes prior to the event and follow the instructions provided to ensure that the necessary audio applications are downloaded and installed. The conference call can also be heard via telephone by dialing (800) 230-1074 or (612) 288-0318 five minutes prior to the call and referencing conference code 804112. A replay of the call will be available within 24 hours of the announcement. To access the replay, dial (800) 475-6701 or (320) 365-3844 and refer to access code 804112.

Nuance Communications, Inc.

Nuance (Nasdaq: NUAN) is the leading provider of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. Every day, millions of users and thousands of businesses experience Nuance's proven applications. For more information, please visit www.nuance.com.

Trademark reference: Nuance, the Nuance logo, ScanSoft, Dragon NaturallySpeaking and OmniPage are registered trademarks or trademarks of Nuance Communications, Inc. or its affiliates in the United States and other countries. All other company or product names mentioned may be the trademarks of their respective owners.

Nuance Communications, Inc.             Condensed Consolidated Statements of Operations                  (in 000's, except per share amounts)                                Unaudited                               Three months ended   Twelve months ended                                September 30,         September 30,                              -------------------  -------------------                                 2005      2004       2005       2004                               --------  --------  ---------  ---------  Product licenses             $ 45,479  $ 29,924  $ 171,198  $ 132,848 Professional services          16,404    12,080     61,190     40,572 Related parties                     -         -          -      4,358                               --------  --------  ---------  ---------     Total revenue              61,883    42,004    232,388    177,778  Costs and expenses: Cost of product licenses        5,608     3,625     20,368     15,211 Cost of professional services  10,045     7,989     39,553     28,565 Cost of revenue from  amortization of intangible  assets                         1,890     2,810      9,150     11,466                               --------  --------  ---------  ---------     Total costs of revenue     17,543    14,424     69,071     55,242  Gross Margin                   44,340    27,580    163,317    122,536  Research and development        9,725     8,333     38,949     35,031 Selling and marketing          21,132    16,172     77,925     66,618 General and administrative      9,711     7,470     30,208     22,584 Amortization of other  intangible assets              1,253       664      3,984      2,818 Stock based compensation        1,062       451      2,996      1,476 Restructuring and other  charges                        4,485         -      7,223      1,428                               --------  --------  ---------  ---------    Total operating expenses    47,368    33,090    161,285    129,955  Income (loss) from operations  (3,028)   (5,510)     2,032     (7,419)  Other income (expense), net      (179)     (295)      (637)       (33)                               --------  --------  ---------  ---------  Income (loss) before income  taxes                         (3,207)   (5,805)     1,395     (7,452)  Provision for income taxes      4,509       349      6,812        591                               --------  --------  ---------  ---------  Net income (loss)            $ (7,716) $ (6,154) $  (5,417) $  (8,043)                               ========  ========  =========  =========  Net Income (loss) per share:  basic & diluted             $  (0.06) $  (0.06) $   (0.05) $   (0.08)                               ========  ========  =========  =========  Weighted average common  shares outstanding:   basic & diluted              118,816   104,604    109,540    103,604                               ========  ========  =========  =========                          Nuance Communications, Inc.                  Condensed Consolidated Balance Sheet                        (Unaudited, in thousands)           Assets                            September 30,  September 30,                                               2005          2004                                          -------------   ----------- Current assets:    Cash and cash equivalents             $     71,687   $    22,963    Marketable Securities                       24,127         7,373    Accounts receivable, net                    69,540        36,523    Prepaid expenses and other current     assets                                      9,548         6,629                                           ------------   -----------      Total current assets                     174,902        73,488  Goodwill                                      459,441       246,424 Long term marketable securities                     -        17,355 Other intangible assets, net                   92,350        43,898 Property and equipment, net                    14,333         7,985 Other assets                                   24,299         3,503                                           ------------   -----------      Total assets                        $    765,325   $   392,653                                           ============   ===========           Liabilities and stockholders' equity  Current liabilities:    Short term notes payable              $     27,711   $       457    Accounts payable and accrued expenses       78,559        29,302    Deferred revenue                            24,120        10,529    Deferred acquisition payment                16,414             -    Other current liabilities                   15,041         5,260                                           ------------   -----------      Total current liabilities                161,845        45,548                                           ------------   -----------  Long term portion of deferred revenue             290           147 Long term notes payable                            35        27,700 Deferred acquisition payment                   16,266             - Other long term liabilities                    72,225        17,513                                          ------------   ----------- Total liabilities                             250,661        90,908  Stockholders' equity                          514,664       301,745                                           ------------   ----------- Total liabilities and stockholders'  equity                                  $    765,325   $   392,653                                           ============   ===========                          Nuance Communications, Inc.          Reconciliation of Supplemental Financial Information                  (in 000's, except per share amounts)                                Unaudited                                 Three months ended  Twelve months ended                                   September 30,       September 30,                                -------------------  -----------------                                    2005      2004      2005      2004                                 --------  --------  --------  --------  GAAP Total revenue             $ 61,883  $ 42,004  $232,388  $177,778    Former Nuance revenue         (2,118)        -    (2,118)        -                                 --------  --------  --------  -------- Total Non-GAAP revenue         $ 59,765  $ 42,004  $230,270  $177,778   GAAP net income (loss)         $ (7,716) $ (6,154) $ (5,417) $ (8,043) Cost of revenue from  amortization of intangible  assets                           1,774     2,810     9,034    11,466 Amortization of other  intangible assets                1,105       664     3,836     2,818 Restructuring and other charges   4,485         -     7,223     1,428 Non-cash stock based compensation   858       451     2,792     1,476 Non-cash interest expense           251         -       889       199 Non-cash taxes                    4,410       165     5,418     1,179 Former Nuance related expense     1,968         -     1,968         - Redundant costs associated with  Independent Accountants (G&A)        -       400         -       400 Costs associated with  Speechworks restatement (G&A)      250     1,321       539     1,321                                 --------  --------  --------  -------- Non-GAAP net income (loss)     $  7,385  $   (343) $ 26,282  $ 12,244                                 ========  ========  ========  ========    Non-GAAP net income (loss)  basic:                        $   0.06  $  (0.00) $   0.24  $   0.12                                 ========  ========  ========  ========  Non-GAAP net income (loss)  diluted:                      $   0.06  $  (0.00) $   0.22  $   0.11                                 ========  ========  ========  ========  Shares used in computing non-  GAAP net income (loss) per share:  Weighted average common shares:   basic                         118,816   104,604   109,540   103,604                                 ========  ========  ========  ========  Weighted average common and common equivalent shares:  diluted                        128,616   112,384   119,111   112,537                                 ========  ========  ========  ========  

This press release and the reconciliation contained herein disclose certain financial measures that may be considered non-GAAP financial measures because they exclude, as applicable, revenues and expenses associated with the acquisition of the former Nuance for the period following September 15, 2005; Nuance-related restructuring and other charges; and as applicable, non-cash taxes, interest and stock-based compensation, amortization of intangible assets, and other charges. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States. These non-GAAP financial measures are provided to enhance the user’s overall understanding of our current financial performance and our prospects for the future. Management believes that these non-GAAP financial measures present a useful measure of our operating performance because they exclude identified non-cash and restructuring charges. Management uses these measures for evaluating historical performance and for forecasting and planning for future periods. These measures, however, should be considered in addition to, and not as a substitute for, or superior to, other measures of financial performance prepared in accordance with generally accepted accounting principles. The non-GAAP measures included in our press release have been reconciled to the nearest GAAP measure.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Statements in this document regarding the future demand for, performance of, and opportunities for growth in Nuance’s speech solutions and productivity applications; the growth of the speech industry and the demand for speech solutions; the continued strength of existing products, services and relationships as well as the development and introduction of new products, services and relationships, the integration planning efforts, and any other statements about Nuance managements’ future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” or “estimates” or similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: fluctuations in demand for Nuance’s existing and future products; economic conditions in the United States and abroad; Nuance’s ability to control and successfully manage its expenses, inventory and cash position; the effects of competition, including pricing pressure; possible defects in Nuance’s products and technologies; the ability of Nuance’s to successfully integrate operations and employees; the ability to realize anticipated synergies from acquired businesses; and the other factors described in Nuance’s Annual Report on Form 10KT for the year ended September 30, 2004 and Nuance’s most recent quarterly report filed with the SEC. Nuance disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this document.