PEABODY, Mass., - January 10, 2001 - ScanSoft, Inc. (NASDAQ: SSFT), a leading provider of paper-to-digital solutions for desktop, network and corporate workgroups, today announced an extension of its existing agreement with the Digital Home and Personal Systems Division (formerly known as Canon Computer Systems Inc.), a division of Canon U.S.A. Inc., a world leader in professional and consumer imaging solutions. Canon will continue to bundle ScanSoft's award-winning TextBridge Pro® 8.0 software with its MultiPASS line of multifunction printers (MFPs).

"We are leveraging our successful long-term relationship with ScanSoft to include TextBridge Pro software with Canon's multifunction printers," said Robert Shibata, senior product manager of MFP products at Canon U.S.A., Inc. "We have found that ScanSoft's highly effective software offers our MultiPASS customers superior quality in scanning accuracy."

TextBridge Pro Brings Superior Scanning Accuracy to MultiPASS Users

The Canon family of multifunction MultiPASS printers combines photo-quality printing, high-quality color scanning, convenient color copying, incredible color faxing and intelligent features in one small unit. By including ScanSoft's TextBridge Pro software, Canon offers MultiPASS MFP customers the benefit of award-winning Optical Character Recognition (OCR) software, providing a powerful tool for paper-to-digital conversion.

"Canon has dominated the MFP market for several years with its superior products and technology," said Wayne Crandall, Senior Vice President of Sales and Marketing for ScanSoft. "The extended agreement between our two companies reflects Canon's continued endorsement of ScanSoft's OCR technology, as well as our joint commitment to offer customers best-of-breed solutions."

ScanSoft Continues to Reach the Business Markets

ScanSoft continues to tap business markets by offering a range of powerful products for the vast numbers of small to mid-sized business users. This most recent alliance with Canon offers ScanSoft an opportunity to expand its growing corporate customer base by reaching out to the growing number of MFP users. Since TextBridge Pro software products will be available to numerous professional Canon MFP users, ScanSoft is able to leverage a significant market opportunity.

The TextBridge Pro software package is included with current models of MultiPASS devices. Additionally, ScanSoft and Canon will promote TextBridge Pro 9.0 to Canon's installed base of MFP users.

About ScanSoft, Inc.

Headquartered in Peabody, MA with European headquarters in the Netherlands, ScanSoft, Inc. (NASDAQ: SSFT) is the leading developer of paper-to-digital solutions that enable users to leverage the power of their scanners, digital cameras and other electronic devices. ScanSoft's award-winning product line - PaperPort Deluxe, Pagis Pro, TextBridge Pro, OmniPage Pro, OmniPage Pro Scan Suite Plus, OmniForm, eOmniForm, Paper Converter, Kai's PhotoSoap2, Kai's SuperGoo, Kai's PowerShow, PhotoFactory, and numerous software developer's kits - 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 technologies include Brother, Canon, Epson, Fujitsu, Hewlett-Packard, IBM/Lotus, Mustek, Primax, Sharp, Symantec Corporation, Visioneer, Xerox and others. ScanSoft's leading technologies have been licensed by Microsoft for use in Office 10 and other 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, marketed and supported worldwide through retail, dealer and OEM channels and the Internet, capturing the small to medium size business and corporate markets. There are more than 6.5 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 ScanSoft's products, 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 ScanSoft's products, 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.

Trademark reference: ScanSoft, PaperPort, PaperPort Deluxe, Pagis, TextBridge, OmniPage, OmniPage Pro Scan Suite Plus, OmniForm, eOmniForm, Paper Converter, Scanner Suite, PageKeeper, Developer's Kit 2000, PhotoFactory, Kai's PhotoSoap2, Kai's SuperGoo, and Kai's PowerShow are registered trademarks or trademarks of ScanSoft, Inc., in the United States and/or other countries. All other trademarks and trade names are hereby recognized and may be registered to their respective holders.

MultiPASS is a trademark and Canon is a registered trademark of Canon Inc.

Contact Information