PEABODY, Mass., - January 16, 2001 - ScanSoft, Inc. (NASDAQ: SSFT), the leading provider of paper-to-digital software, today announced that it has signed a distribution agreement with Fuji Xerox Australia, a leader in delivering document management solutions. ScanSoft's complete product line will now be distributed throughout Australia, as the company strategically expands into new geographic areas, serving the small to medium size businesses and corporate workgroup markets.

Fuji Xerox has successfully marketed ScanSoft's Pagis® Pro and TextBridge® Pro software for the past six years. This new agreement extends the relationship to include the distribution of ScanSoft's OmniPage®, OmniForm®, PaperPort®, Recognita, and Kai's photo products. Fuji Xerox has gained sole distribution rights for Australia and some of the smaller regional environs. Per the agreement, Fuji Xerox will also provide product support to their customers via its established Help Centre.

"Our primary goal is to build upon an existing relationship with ScanSoft to successfully distribute and market this mutually profitable product line to software dealers and resellers throughout Australia. As we move into 2001, we plan to leverage the ScanSoft product line by taking advantage of the huge growth in digital cameras and the scanner market," said Malcolm Cartlidge, Group Product Manager Supplies of Fuji Xerox Australia. "With Fuji Xerox's large sales force covering every state and territory in Australia, we are well positioned to promote and sell ScanSoft's award-winning products nationwide."

Commenting on the relationship, ScanSoft's Director of Channel Sales for U.S., PacRim, and Latin America, Jim Tedesco said, "Joining forces with Fuji Xerox Australia will help us maintain our position as the dominant market leader, worldwide. We chose Fuji Xerox because of their global reputation and their ability to penetrate new markets for ScanSoft in Australia."

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.

About Fuji Xerox Australia

Fuji Xerox Australia is a leader in document management solutions, drawing on many years of R & D to deliver customized solutions for clients at every level of enterprise document processing. Operating since 1961, the company boasts the broadest range of printers, digital production publishers, copiers, facsimile products and scanners in the industry. Fuji Xerox Australia prides itself on working with its customers to create customized document solutions. Our specialist staff tailor solutions to suit a range of industries, including Graphic Arts, Government, Financial Services, Professional Services and Education.

Trademark reference: ScanSoft, PaperPort, PaperPort Deluxe, Pagis, TextBridge, OmniPage, OmniPage Pro Scan Suite Plus, OmniForm, eOmniForm, Paper Converter, PageKeeper, 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

The Company notes that the statements in this release that relate to future plans, events, performance, including without limitation the perceived benefits of the agreement, are forward-looking statements subject to risks and uncertainties that may cause the Company's actual results to differ materially. These risks and uncertainties include, but are not limited to, market acceptance, the impact of competitive products and other risks detailed from time to time in the Company's SEC reports. Readers are cautioned not to place undo reliance on these forward-looking statements, which speak only as of the date hereof.

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