ScanSoft Expects To Exceed Revenue Guidance In Second Quarter

Stronger Sales Include Enthusiastic Reception to OmniPage Pro 11

PEABODY, MA - July 10, 2001 /PRNewswire/ -- ScanSoft, Inc. (Nasdaq: SSFT), a global leader in paper-to-digital solutions, today announced that it expects revenue for the three months ended June 30, 2001 to exceed $14.5 million, compared with the previous guidance of $13 million to $14 million provided when ScanSoft released first-quarter results on May 1.

“We are pleased that ScanSoft will once again deliver the results we promised,” said Paul Ricci, chairman and CEO of ScanSoft. “Our revenues for the second quarter reflect an enthusiastic customer reception for our new OmniPage® Pro 11 optical character recognition (OCR) product. OmniPage revenues exceeded our expectations primarily because of higher than expected orders resulting from the success of our direct marketing efforts. We also continue to see strong revenues from our broad base of OEM partners. In addition, and despite the sluggish external environment, our North American retail revenues exceeded our expectations.”

OmniPage Pro 11 is the first OCR product developed from the combined imaging technology and expertise of both ScanSoft and Caere, enabled by ScanSoft’s acquisition of Caere in March 2000.

ScanSoft will report its second quarter 2001 financial results before the opening of the market on Tuesday, July 31, 2001. In conjunction with that announcement, the company will conduct its quarterly conference call at 10:00 a.m. (ET) July 31. To listen to the call, please telephone (719) 457-2692 approximately 10 minutes beforehand. For those who are not available to listen to the live conference call, a replay will be available via telephone starting at approximately 1:00 p.m. (ET) on July 31 until 11:30 p.m. (ET) on August 7. The access number for the replay is (719) 457-0820 or (888) 203-1112; confirmation number 438298.

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 10 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 Investors will also have access to an archived version of the call on the company’s Web site.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, 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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