PEABODY, Mass., - February 20, 2001 -ScanSoft, Inc. (NASDAQ: SSFT), a leading provider of paper-to-digital solutions for desktop, network and corporate workgroups, today announced that its PaperPort Deluxe® software has exceeded sales expectations in Europe. The highly popular paper management product has had resounding success across Europe since its launch in May 2000 and has been recognized with several prestigious awards, including the PC Achat - Award Qualité/Prix in France and the PC Answers Platinum Award and PC Home Silver Award in the UK.

"We have exceeded our expectations for PaperPort sales, clearly demonstrating the rapid adoption of paper management software in Europe," said Mark Erwich, European marketing director for ScanSoft. "The increasing use of the Internet, e-mail, and digital cameras by Europeans has contributed to PaperPort's success. The product offers customers increased productivity and efficiency at a low price, making it an ideal application for users with and without scanners."

PaperPort Deluxe 7.0 was launched across Europe in May 2000, in an integrated announcement in the UK, Ireland, Germany, Austria, Switzerland, France, Spain, Italy, Belgium, Netherlands, Sweden, Norway, Denmark and Finland simultaneously. The integrated plan ensured the product was successful throughout Europe and included coordinated direct mail, advertising, web, channel, and PR campaigns.

Major retailers in France, including FNAC, Auchan and Carrefour immediately accepted the product. In Germany, PaperPort Deluxe 7.0 cornered the market as the only highly efficient, yet low cost, paper management software product available. The product was launched to the public through a series of events at Karstadt and Mediamart, organized jointly by ScanSoft and Agfa.

PaperPort Appeals to Diverse Customer Base in Europe

PaperPort Deluxe has been adopted in many diverse vertical markets across Europe, including financial services, local government and healthcare. Oropec Consult Gesellschaft für Unternehmensberatung mbH, a professional company supplying financial and real estate services in Germany, finds PaperPort indispensable in organizing and cataloguing images from the company's numerous projects. Dr. Gerhard Engler, a pediatrician in Germany who uses PaperPort to file and easily retrieve patient files said, "I am inundated daily with mountains of papers and files. Using PaperPort I am now more organized and consequently able to spend more time treating my patients." Kambach GmbH, a German business representing three industrial companies, utilizes PaperPort to keep tabs on their real estate documents. " PaperPort Deluxe 7.0 helps us collect, distribute, customize and store listings and offers, as well as other pertinent documents. Paper Port streamlines the process, saving our firm time and helping us work more efficiently," said Mr. Kambach.

PaperPort Deluxe received high praise from PC Answers, which awarded the product its prestigious Platinum Award: "PaperPort Deluxe 7.0 is solid, reliable and highly functional, offering substantial weight to your scanning tasks…. why let scanning become a chore when you can soften the task in style?"

Pricing and Availability

PaperPort Deluxe 7.0 can be purchased in the U.S. for $59.99 (upgrade $29.99) on CD or for download directly from ScanSoft by visiting www.scansoft.com, or by calling 888-345-6203. To purchase in Europe (£29.99 / 46,95 EUR), please visit the following sites: United Kingdom - http://www.scansoft.co.uk, France - http://www.scansoft.fr/, Germany - http://www.scansoft.de/, the Netherlands - http://www.scansoft.nl/.

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 Deluxe, Pagis, TextBridge, OmniPage, OmniPage Pro Scan Suite Plus, OmniForm, eOmniForm, Paper Converter, Scanner Suite, PageKeeper, 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.

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