ScanSoft Closes Acquisition of Phonetic Systems

    Business Editors/Technology Editors

    PEABODY, Mass.--(BUSINESS WIRE)--Feb. 3, 2005--ScanSoft, Inc. (NASDAQ: SSFT), a global leader of speech and imaging solutions, today announced that it has closed the acquisition of Phonetic Systems, Ltd. Phonetic Systems provides ScanSoft with an array of technology, customer, partner and employee resources to help fuel its growth and accelerate the deployment of high quality speech applications throughout the world.
    This acquisition strengthens ScanSoft's global leadership in automated Directory Assistance (DA) and enterprise speech applications. Combined, the organizations provide speech solutions that automate directory assistance for more than a dozen telecommunications carriers and power speech applications for more than two-thirds of the Fortune 100. Phonetic Systems adds customer relationships with industry leaders, including AT&T, Bell Canada, JP Morgan, Motorola, Novartis and Procter & Gamble. In addition, Phonetic Systems brings to ScanSoft a focused, established speech team and comprehensive technology and application portfolio that advance ScanSoft's delivery of solutions for voice-based access to information, people, applications and services.
    This acquisition is an example of how ScanSoft continues to invest in high-growth speech markets and is delivering on its strategy for a future where natural, human conversations will be the predominant way that people retrieve information and interact with automated systems.

    About ScanSoft, Inc.

    ScanSoft, Inc. is a global leader of 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.

    ScanSoft and the ScanSoft logo are registered trademarks or trademarks of ScanSoft, Inc. in the United States and other countries. All other company or product names may be the trademarks of their respective owners.

    Safe Harbor Statement

    The statements in this press release that relate to future plans, events or performances are forward-looking statements that involve risks and uncertainties, including risks associated with market trends, competitive factors, and other risks identified in the Company's SEC filings. Actual results, event 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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CONTACT: ScanSoft, Inc. Richard Mack, 978-977-2175 richard.mack@scansoft.com or ScanSoft, Inc. Jonna Schuyler, 978-977-2038 jonna.schuyler@scansoft.com

KEYWORD: MASSACHUSETTS INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING INTERNET E-COMMERCE MERGERS/ACQ SOURCE: ScanSoft, Inc.

Copyright Business Wire 2005