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Microsoft Announces New Office Document Imaging Tool Included in Office XP

Includes OCR Technology From ScanSoft

REDMOND, Wash., May 31 /PRNewswire/ -- Microsoft Corp. today announced Office Document Imaging, a new tool included in more than 20 language versions of Microsoft® Office XP. The tool gives users the ability to integrate hard-copy documents into their Office XP workflow. Users can scan and index paper documents within Office XP to search and retrieve them for reference, or to integrate the recognized text into their Office applications. Office Document Imaging makes it easier for users to find and reuse paper-based corporate knowledge.

An integral part of Office Document Imaging is optical character recognition (OCR) software licensed from ScanSoft Inc (Nasdaq "SSFT"). OCR recognizes words in scanned document images. As a result, the text can be repurposed into Office applications such as Microsoft Word or the Outlook® messaging and collaboration client. The entire content of the scanned document is indexed, allowing users to search for any word in the document. Using the Search function in Office, users will be able to retrieve both electronic and scanned document images.

"Although the traditional office aspires to become paperless, the integration of paper-based documents into a standard office workflow has been a difficult challenge," said Larry Engel, product unit manager at Microsoft. "We are now addressing the concerns of integrating page images seamlessly into the standard Office applications, with the ease of a common user interface. Although it may not achieve the goal of the totally paperless office, it will help in making processes less paper-intensive and time-consuming. Scansoft's technology provides the perfect complement to our focus on providing an Office-like user experience for capturing paper documents."

Customers that have more advanced repurposing needs for their image documents can purchase ScanSoft's OmniPage Pro® OCR software. This powerful product enables users to completely repurpose their documents, including text styles, page layouts, tables, graphics and pictures, into Office applications such as Word, Excel, the PowerPoint® presentation graphics program, Access and the FrontPage® Web-site creation and management tool. More information can be found at http://www.scansoft.com/products/omnipage/.

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software -- any time, any place and on any device.

Microsoft, Outlook, PowerPoint and FrontPage are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

ScanSoft and OmniPage are registered trademarks or trademarks of ScanSoft Inc. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

About ScanSoft, Inc.

Headquartered in Peabody, MA, ScanSoft, Inc. (NASDAQ: SSFT) is the leading developer of paper-to-digital software that enables 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, PageKeeper, ImageAXS, Kai's PhotoSoap2, Kai's SuperGoo, Kai's PowerShow, and PhotoFactory - 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 OCR technologies to incorporate into their own product offerings include Brother, Canon, Epson, Fujitsu, Hewlett-Packard, Lotus Development Corporation, Microtek, Mustek, Primax, Sharp, Symantec Corporation, Visioneer, Xerox and others. ScanSoft's leading technologies have been licensed by Microsoft for use in 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 and marketed worldwide through retail, dealer and OEM channels and the Internet, capturing the consumer, small office/home office (SOHO) 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 Developer's Kit 2000 version 10, 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 Developer's Kit 2000 version 10, 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.

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, Kai's PowerShow, and Logical Forms Recognition are registered trademarks or trademarks of ScanSoft, Inc. All other trademarks and trade names are hereby recognized and may be registered to their respective holders.

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