Amazing Accuracy Improvements as well as Enterprise and Ease-of-Use Features Turn Speech Recognition Promise into Reality - in the Home, Office and Enterprise

PEABODY, Mass., November 1, 2004 - ScanSoft, Inc. (Nasdaq: SSFT), the leading global supplier of speech and imaging solutions, today introduced ScanSoft® Dragon NaturallySpeaking® version 8, a new release of the world's best-selling and most popular speech recognition solution for Microsoft Windows. With unprecedented accuracy improvements, expanded enterprise functionality, and new ease-of-use features, Dragon NaturallySpeaking 8 makes speech recognition valuable for everyone - in homes, offices and businesses around the world.

Dragon NaturallySpeaking converts speech into text at up to 160 words per minute, and allows users to control their PC completely by voice. With an accuracy increase of more than 25 percent, Dragon NaturallySpeaking 8 delivers the most significant accuracy improvement in the history of the product, achieving up to 99 percent total accuracy levels. The new version also adds support for using Palm Tungsten devices for mobile dictation; includes smart formatting of spoken dates, numbers and acronyms; enables roaming use from any PC on a network; and expands the ability to add custom vocabularies to the product. The new release also includes expanded network tools for installing Dragon NaturallySpeaking 8 throughout an enterprise, a key requirement for large organizations looking to implement speech recognition solutions.

"Dragon NaturallySpeaking 8 represents a significant breakthrough in recognition accuracy," said Chuck Runquist, chief executive officer of GEMCCON, a software evaluation and benchmarking company. "If you also consider the new features in Dragon NaturallySpeaking 8, such as the roaming user functionality and expanded custom command options, I can see tremendous benefits to both home and enterprise users. It is clear that there is an opportunity to significantly expand the market acceptance of this product."

Dragon NaturallySpeaking is tightly integrated with Microsoft Office, allowing users to create new documents, or change the layout of existing documents, using their voice. ScanSoft provides versions of the product that are U.S. Section 508 certified, assuring organizations that the product meets government standards for use by those with disabilities. Dragon NaturallySpeaking 8 Professional is the ideal solution for corporations looking to reduce temporary labor costs and insurance premiums by reducing repetitive stress injuries and worker compensation claims.

"Dragon NaturallySpeaking enables many of the people with whom I work to achieve equivalent 'typing' speeds of over 100 words per minute, while still maintaining high levels of accuracy," said Deke Lightholder, a Certified Disability Management Professional with more than 25 years of experience. "I've also witnessed how this technology has saved our organization considerable money in reduced disability benefits and lost work days. For individuals or companies looking for ways to help reduce keying and mousing, increase productivity and prevent possible injury, I encourage consideration of the benefits offered by Dragon NaturallySpeaking."

A Breakthrough in Speech Recognition for Microsoft Windows

To help users achieve an increased level of productivity and unparalleled levels of accuracy, ScanSoft has added a number of key capabilities to Dragon NaturallySpeaking 8:

• Most Accurate Ever - Significant improvements to the Dragon NaturallySpeaking recognition system has yielded an unprecedented accuracy improvement of up to 25 percent over the previous release, resulting in speech recognition accuracy levels as high as 99 percent.



• Enterprise Ready with Roaming User Access - Dragon NaturallySpeaking 8 makes user profiles available anywhere on the local area network, and automatically synchronizes updates and adaptations centrally. Users can also use the new Native MSI Installer to install Dragon NaturallySpeaking through a network to multiple client machines.



• Smart Formatting - Users can specify how Dragon NaturallySpeaking formats dates, measurements and acronyms to meet their requirements and can establish the specific configuration of any word depending on its context, such as before or after numbers.



• Smart Text and Graphics Shortcuts - Instantly create boilerplate templates with variable values defined. For example, say "stock option grant 60 1000" and a stock option grant template appears with the vesting beginning in 60 days and the number of shares at 1000. Say "stock option grant 30 5000" and the same template appears with the vesting beginning in 30 days and the number of shares at 5000.



• Smart Commands - Change the action of a voice command depending on the location of the cursor.



• Improved Vocabulary Tools - For organizations and specialties that use unique words, such as product names or industry vernacular, it is now easier than ever to add custom vocabularies to Dragon NaturallySpeaking.



• Mobile Dictation - New support for Palm Tungsten devices allows users to capture mobile dictation for later processing by Dragon NaturallySpeaking. Pocket PC, Tablet PC and digital dictation devices are also supported.



• Dragon NaturallySpeaking SDK - Software developers interested in speech-enabling their in-house or commercial applications now have access to the complete functionality of Dragon NaturallySpeaking. Using the Dragon NaturallySpeaking SDK (software developers kit), programmers can rapidly implement voice control and speech-to-text input for thick-client, Web-based and Microsoft .NET applications.

"Dragon NaturallySpeaking 8 is simply the most significant new release of speech recognition that I have seen in my 20 years in the industry," said John Shagoury, president, ScanSoft Productivity Applications Division. "For anyone who has been waiting to try speech recognition or has tried it in the past, the near-perfect accuracy that we have now achieved with Dragon NaturallySpeaking 8 makes speech recognition a reality for everyone. In a small office or a large enterprise, Dragon NaturallySpeaking is an innovative, easy to use product that allows users to get the most from their existing applications, increasing productivity and making voice recognition a reality for everyone."

Availability

ScanSoft Dragon NaturallySpeaking 8 Standard, Preferred and Professional are available immediately through ScanSoft's global network of reseller partners, software retailers and professional sales organization. Dragon NaturallySpeaking 8 Medical and Legal solutions, as well as the Dragon NaturallySpeaking SDK, are available through ScanSoft's value added partners worldwide. For additional information on features, pricing and volume licensing programs, please visit www.ScanSoft.com/sales or call (1) 800-443-7077.

About ScanSoft, Inc.

ScanSoft, Inc. (Nasdaq: SSFT) is the global leader of speech and imaging solutions that are used to automate a wide range of manual processes - saving time, increasing worker productivity and improving customer service. For more information regarding ScanSoft products and technologies, please visit www.ScanSoft.com.

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

The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with market trends, competitive factors, and other risks identified in ScanSoft's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to put undue reliance on these forward-looking statements that speak only as of the date hereof.

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