PEABODY, Mass., - April 20, 2001 - ScanSoft, Inc. (Nasdaq: SSFT), a global leader in paper-to-digital solutions, today affirmed its revenue guidance for the first quarter ended March 31, 2001. ScanSoft expects to report first quarter revenues in the middle of the revenue range of $12.0 million to $13.5 million, previously provided as guidance during its fourth quarter conference call with investors on February 14, 2001. In addition, the company expects to report income from operations that is about breakeven. Net income before amortization of intangibles is expected to be slightly below breakeven due to interest expense, foreign exchange impacts and taxes on foreign sourced income.

"Despite the overall slowdown in the information technology sector, we are delivering the results that we promised," said Paul Ricci, chairman and CEO of ScanSoft. "Because we managed our expenses in accordance with market conditions, we have been able to sustain the financial recovery that began in the third quarter and continued through the fourth quarter. Adding to this momentum during the balance of 2001 will be the positive revenue and earnings impact of the Microsoft Asian OCR licensing agreement that we announced this week." ScanSoft disclosed Wednesday that it expects to recognize incremental revenues of approximately $3 million in the first year of the agreement with Microsoft; the agreement is also expected to be materially accretive to earnings in 2001. First quarter results will not include revenue from the Microsoft Asian OCR licensing agreement.

ScanSoft will report its first quarter 2001 financial results before the opening of the market on Tuesday, May 1, 2001. In conjunction with that announcement, the company will conduct its quarterly conference call at 10:00 a.m (ET) May 1. To listen to the call, please telephone (719) 457-2649 approximately ten minutes beforehand. For those who are not available to listen to the live conference call, a replay will be available via telephone starting approximately at 2:00 p.m. Eastern Time on May 1st until 11:30 p.m. Eastern Time on May 5th. The access number for the replay is (888) 203-1112 or (719) 457-0820; confirmation number 721502.

The conference call will also be broadcast live over the Internet. Investors interested in listening to the call should log onto the company's Web site at www.scansoft.com at least ten minutes prior to the broadcast. Investors will also have access to an archived version of the call on the company's Web site.

About ScanSoft, Inc.

Headquartered in Peabody, Mass., with European headquarters in The Netherlands, ScanSoft, Inc. (Nasdaq: SSFT) is a global leader in paper-to-digital solutions for the desktop, network, Internet and mobile environments that enable users to leverage the power of their scanners, digital cameras and other electronic devices. ScanSoft's award-winning product line - OmniPage Pro, TextBridge Pro, PaperPort Deluxe, Pagis Pro, OmniForm, eOmniForm, 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 products and 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 XP 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 8 million registered users of ScanSoft products. ScanSoft can be found on the Web at www.scansoft.com .

Trademark reference: ScanSoft, OmniPage, TextBridge, PaperPort, PaperPort Deluxe, Pagis, OmniForm, eOmniForm, and Developer's Kit 2000 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.

Safe Harbor Statement

Except for the historical information contained herein, statements regarding ScanSoft's revenue and income expectations for the first quarter of 2001 are forward-looking statements within the meaning of Section 21(e) of the Securities Exchange Act of 1934. These statements are based on ScanSoft's current expectations and estimates as to prospective events and circumstances that may or may not be in ScanSoft's control and as to which there can be no firm assurances given. These forward-looking statements are subject to risks and uncertainties and there can be no assurance that any of these forward-looking statements may prove to be correct and actual results may differ materially. These risks and uncertainties include, but are not limited to, our ability to effectively manage diverse and geographically dispersed operations, difficulties with integrating product plans, schedules and resources, difficulties in implementing the planned cost reductions, potential that the information and estimates used to predict the cost savings were not accurate, market acceptance of ScanSoft's products, competitive products, pricing pressures, maintenance of distribution channels, 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.

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