PEABODY, Mass., - April 27, 2001 - ScanSoft, Inc. (Nasdaq: SSFT), a leading provider of paper-to-digital solutions for desktop, network and corporate workgroups, today announced that its largest institutional shareholder, the State of Wisconsin Investment Board (SWIB), has invested $5 million in the company in exchange for common stock.

SWIB purchased an additional 4.76 million shares of ScanSoft common stock. As of December 31, 2000, SWIB owned 3.87 million shares, or approximately 8.4 percent of ScanSoft's outstanding common stock.

"We are delighted to announce this important reaffirmation of our relationship with the State of Wisconsin Investment Board," said Paul Ricci, chairman and CEO of ScanSoft. "SWIB ranks as one of the nation's premier public employee pension funds and asset managers. They play a leadership role in the investment community, particularly on such critical issues as corporate governance. Their commitment of $5 million of new equity in ScanSoft represents an important validation of our strategy and bright future."

This share purchase was completed as a private placement transaction, under an exemption from registration provided by Section 4(2) of the Securities Act of 1933, as amended (the Securities Act), and Rule 506 under the Securities Act. ScanSoft has agreed to effect registration of the subject shares within 90 days of the purchase date. Proceeds from the transaction are to be used for working capital and other general corporate purposes. Other terms of the transaction were not disclosed.

About the State of Wisconsin Investment Board

The State of Wisconsin Investment Board (SWIB) is a state agency that invests the assets of the Wisconsin Retirement System (WRS), the State Investment Fund, and several smaller trust funds established by the state. As of December 31, 2000, assets under management totaled $67.0 billion.

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, this press release includes forward-looking statements within the meaning of Section 21(e) of the Securities Exchange Act of 1934. 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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