Peabody, MA, March 20, 2000 - ScanSoft, Inc. (NASDAQ: SSFT), the leading provider of digital imaging software, is making its debut into the Internet business publishing market today with the introduction of Paper Converter™ for Microsoft's FrontPage 2000, an innovative new software product that quickly converts scanned paper documents and images - including formatted text, tables and photos - into editable HTML. Paper Converter is the first scan-to-Web product designed to seamlessly integrate directly into Microsoft's (NASDAQ: MSFT) FrontPage 2000, the world's best-selling Web site creation and management tool. For the first time, Web professionals and office workers in small businesses and larger corporate environments can easily convert and organize paper-based information and make it accessible via the Web and on corporate intranets.

Until now, Web content generation from a paper source has been a struggle for most users. The knowledge contained in mountains of paper documents has become an untapped resource for online use. As aggressive markets heat up and competition rises, companies understand that they must leverage their valuable paper-based assets. Paper Converter delivers instant content creation from a paper source directly into the most popular publishing environment for the Web. Companies now have the ability to use existing paper resources to create new information applications and revenue generating opportunities.

"Results of recently conducted surveys have shown us that FrontPage users clearly support the concept of quickly converting information contained in paper documents directly into Web content," said Tom Bailey, Lead Product Manager for FrontPage at Microsoft. "Paper Converter enables over 4 million FrontPage users to easily extend their authoring environment to take full advantage of paper-based information. The Microsoft and ScanSoft teams have worked closely together to couple FrontPage 2000 and Paper Converter, creating new and unique content development opportunities for businesses of all sizes."

Paper Converter Offers Unique Flexibility to Convert and Edit Paper Content for the Web

ScanSoft has taken an entirely new approach to placing paper on the Web. Designed as a fully integrated companion product to FrontPage 2000, Paper Converter is the first scan-to-Web product to exist inside the Web publishing environment. As more and more people participate in Web content creation, ScanSoft envisions Paper Converter as a critical application for leveraging the untapped element of available content - paper.

"Paper Converter is the ultimate efficiency solution for workers in small businesses and corporate workgroups, now the fastest growing segment of Web content creators," said John Hoye, Director of Product Marketing for ScanSoft. "Web publishing has never been so easy. Rather than spending valuable time going through multiple steps to reconstruct the look, feel and content of an original document, paper containing text and graphic images can be easily scanned and displayed on a Web site in seconds."

Paper Converter can handle multiple pages and complex content, including graphics, text, images and tables. ScanSoft's formatted (WYSIWYG) HTML output maintains the page layout of the original document with amazing fidelity. Once in HTML format, images can be edited and redesigned. Plus, Paper Converter dynamically creates a table of contents for easy reference and navigation from page to page within the document.

"Paper Converter is incredibly easy to use," said Quentin Leo, Independent Software Developer. "The entire process of taking an image, scanning it and posting it on the Web is simpler than creating a PowerPoint presentation. Paper Converter will dramatically lower the bar for Web page creation - anyone who can perform basic functions in Office 2000 can now create Web pages."

Microsoft and ScanSoft Offer Attractive Promotions

Microsoft and ScanSoft are offering special introductory promotions as well as joint marketing activities to support the launch of Paper Converter. ScanSoft will include a 45-day trial version of FrontPage 2000 with a limited number of initial shipments of Paper Converter. Microsoft will bundle a "Try and Buy" version of Paper Converter with trial versions of FrontPage 2000. Front Page users can also find more information about Paper Converter on the Microsoft FrontPage Web site.

Paper Converter Features and Benefits

Paper Converter delivers two critical benefits to FrontPage users:

Seamless integration for use within the familiar FrontPage 2000 environment
Enormous time savings for converting paper to new and existing Web pages

Seamless Integration with FrontPage 2000

Paper Converter enables all Web page conversion to be done within FrontPage 2000.

ScanSoft's "Instant Access" technology - allows users to access Paper Converter from the FrontPage 2000 toolbar. Direct access to Paper Converter makes conversion of paper-based documents to HTML simple. The scanning and placement of results are accomplished in three easy steps.
Certified for Windows 2000 - Paper Converter has passed Microsoft's stringent testing requirements to receive the "Certified for Windows 2000" logo, ensuring compatibility with the newest Windows operating system and a consistent user experience across Office 2000 applications.

Time Saving Functionality

FrontPage users no longer have to learn a new application to take advantage of paper content on Web sites and corporate intranets.

HTML (WYSIWYG) Output - the most advanced, yet easiest to use, image capture and recognition technology ensures that the output retains the look and feel of the original document, eliminating the need for extensive revisions. HTML output, including text, graphics, tables and multi-page documents viewed as cascading style sheets, can be edited directly within FrontPage 2000. Embedded navigation buttons allow users to easily move from page to page, and a table of contents provides links between documents.
Page Layout Retention - state of the art page layout analysis automatically turns paper into formatted Web pages while maintaining a document's original appearance and layout, including text, tables, photos and graphics.
Recognition Accuracy - proven accuracy of better than 99% using ScanSoft's most powerful recognition engine shipped to date.
Color Support - retains the color photos or graphics contained in the original document.
Automatic or Manual Modes - lets the user choose between fast conversion or a more methodical approach to conversion of the document.
Import - to convert a scanned single or multi-page document and import it as a new Web page(s). Paper Converter automatically creates Previous, Next and Index (Table of Contents) reference links, allowing easy navigation of the document.
Insert - to convert a scanned page or portion of the page and insert it into a Web page.

Pricing and Availability

Paper Converter is immediately available on CD or for download directly from ScanSoft and through the following electronic resellers: www.buy.com, www.beyond.com, www.amazon.com, www.computers4sure.com and www.outpost.com. Paper Converter can be purchased directly from ScanSoft by calling 888-345-6203 or visiting www.scansoft.com. ScanSoft's retail partners, including Best Buy, CompUSA, Fry's, Micro Center, Office Depot, OfficeMax, Sam's Club and Staples, as well as major software catalog vendors, will make Paper Converter available within one week of this announcement. The estimated street price of Paper Converter is $49.95. For the name and location of the retailer nearest you, visit ScanSoft on the World Wide Web at www.scansoft.com. Volume licensing is also available by calling 978-977-2099 or by visiting www.scansoft.com/sales/volumelicense/.

For a limited time, Paper Converter units will include a CD containing a 45-Day Trial Version of Microsoft FrontPage 2000 at no additional charge. This will allow those who may not be FrontPage users today or have not elected to upgrade to FrontPage 2000 to begin working with Paper Converter immediately.

About ScanSoft, Inc.

Headquartered in Peabody, MA, ScanSoft, Inc. (NASDAQ: SSFT) is a leading developer of digital imaging software that enables users to leverage the power of their scanners, digital cameras and other electronic devices. ScanSoft's award-winning product line - Pagis Pro®, TextBridge Pro®, PaperPort Deluxe®, OmniPage Pro®, OmniForm®, OmniPage Scanning Suite®, ImageAXS®, Kai's Photo Soap2®, Kai's SuperGoo®, Kai's PowerShow®, and PhotoFactory® - enables users to capture, recognize, edit, manage and share documents and photos electronically by taking advantage of ScanSoft's cutting-edge technology.

ScanSoft has established numerous strategic partnerships with the industry's leading scanner and multifunction vendors to deliver the most comprehensive and cost-effective solutions for its customers. Vendors who have chosen ScanSoft's cutting-edge OCR technologies to incorporate into their own product offerings include Brother, Canon, Epson, Fujitsu, Hewlett-Packard, Lotus Development Corporation, Microtek, Mustek, Primax, Sharp, Symantec Corporation, Visioneer, Xerox and others. ScanSoft's leading OCR technology was recently licensed by Microsoft for use in future products. ScanSoft continues to cultivate and develop strategic partnerships to deliver the most comprehensive and cost-effective solutions for its customers.

ScanSoft software is sold and marketed worldwide through retail, dealer and OEM channels and the Internet, capturing the consumer, small office/home office (SOHO) and corporate markets. There are approximately 6 million registered users of ScanSoft products. ScanSoft can be found on the Web at www.scansoft.com.

Except for the historical information contained herein, the matters set forth in this press release, including, but not limited to, statements as to the features, perceived benefits and availability of Paper Converter, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the market acceptance of Paper Converter, the impact of competitive products, and other risks detailed from time to time in ScanSoft's SEC reports. ScanSoft disclaims any intent or obligation to update these forward-looking statements.

Paper Converter, Pagis, TextBridge, PaperPort, PaperPort Deluxe and Scanner Suite are registered trademarks or trademarks of ScanSoft, Inc. All other trademarks are the property of their respective holders.

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