Revolutionary Service Lets Users Talk Instead of Type to Compose SMS, Instant Messages and Mobile Email Using the World’s Most Popular Speech Recognition Technology

CTIA Wireless 2007, ORLANDO, March 27, 2007 – Nuance Communications, Inc. (NASDAQ: NUAN) today launched Nuance® Mobile Messaging™. Based on Dragon® NaturallySpeaking® 9, the world’s most popular desktop dictation software, Nuance Mobile Messaging enables users to compose messages on mobile devices up to six times faster than typing. Nuance will demonstrate the new technology in booth #4179 at the CTIA Wireless 2007 conference, being held this week in Orlando, Fla.

The ability to enter text simply by speaking eliminates the common frustrations associated with using small keypads. Nuance Mobile Messaging’s SpeakAnywhere™ functionality lets users speak naturally, instead of typing, wherever they are prompted by a blinking cursor to enter text. To input information by voice, users simply position the cursor where they would begin typing and begin speaking. When they are done speaking, a transcript instantly appears on the screen. Nuance Mobile Messaging leverages a client-server architecture to provide unrivaled accuracy that enables users to dictate at a rate of up to 160 words per minute.

“Nuance Mobile Messaging revolutionizes mobile messaging because it truly eliminates the frustrations we’ve all felt using the small keypads of mobile devices,” said Michael Thompson, vice president and general manager, telco, search and communications at Nuance. “This solution has the power to elevate mobile email into a communications platform on par with desktop email. Nuance’s broad portfolio of market-leading speech technologies, specifically in dictation, allows us to deliver this type of unique and highly compelling solution.”

Nuance Mobile Messaging is currently in trials with carriers worldwide. Nuance expects several carriers to make Nuance Mobile Messaging available to consumers before the end of the year.

“At Nokia our vision is to bring mobile email within every employee’s reach, in addition to the executive suite,” said Lior Nir, director of product marketing, Mobility Solutions, Enterprise Solutions, Nokia. “We think that new innovations like Nuance Mobile Messaging are a great way to expand the addressable market and bring additional capabilities to existing mobility offerings.”

“Nuance Mobile Messaging addresses one of the primary limitations of mobile messaging: the constraints of the small keypad,” said Ari Backholm, vice president, marketing and product management at mobile e-mail provider SEVEN. “As we invest in meeting the demands for mobile messaging services from new and expanding market segments, we view this unique speech recognition solution as a powerful growth driver. We are pleased to be working with Nuance on opportunities to deliver this revolutionary new service to our customers.”

Survey Reveals Increased Demand for Speech-Based Mobile Messaging

According to industry analysts, use of mobile email is expected to grow dramatically, driven in particular by expanding enterprise markets. Enterprise mobile email was a $6 billion market in 2006, according to Portio research, and usage is expected to grow at over 70 percent per year. From partners and industry experts to potential end-users, the mobile industry is embracing speech-based solutions as a key driver of this market growth.

According to a recent independent survey of US and UK cell phone users with email capabilities, nearly 75 percent of respondents who saw speech-based mobile messaging were interested in using the application. The majority of survey respondents said they would use the service because it would save time (71 percent), while 39 percent also said they didn’t like using the phone keypad. The positive response was also based on the extreme accuracy of the application. Approximately 70 percent of survey respondents who saw Nuance Mobile Messaging said accuracy exceeded their expectations.

Survey respondents revealed a variety of locations for usage of the service: approximately 73 percent of survey respondents said they would use the service in the car, 69 percent indicated they would use it at home, 61 percent while walking (such as in an airport), and 50 percent would use the service in their offices.

The survey also indicates a promising opportunity for carriers. Nearly 70 percent of users indicated they would send more emails and text messages using the service, and nearly 60 percent said they would pay a premium for the service over and above their existing monthly charge. Nuance Mobile Messaging also was clearly viewed as a differentiating application that can be a tie breaker for consumers choosing between carrier offers: 77 percent of those surveyed said that they would be somewhat likely or very likely to choose one carrier’s unlimited data plan which included this service over a competing but otherwise equivalent offer without the service from a second carrier.

CTIA Emerging Technology Awards

Nuance Mobile Messaging is a finalist in the CTIA Emerging Technology Awards competition, a program honoring the best wireless products and services in the areas of consumer, enterprise and network technology based on innovation, functionality, vision, technological importance and implementation. CTIA show attendees can stop by the Awards Display in the Hall C Library to see the Nuance entry.

Availability

Nuance Mobile Messaging is a Nuance hosted service that will be available for resale to mobile carriers and mobile e-mail ISVs worldwide. The small footprint client can easily be downloaded onto a mobile device, leveraging Nuance’s advanced network capabilities for scalability, reliability and maintenance.

About Nuance Communications, Inc.

Nuance is a leading provider of speech and imaging solutions for business 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.

Nuance, the Nuance logo, Dragon, NaturallySpeaking and SpeakAnywhere are trademarks or registered trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other trademarks referenced herein are the property of their respective owners.