PEABODY, Mass., - October 24, 2001 ScanSoft®, Inc. (Nasdaq: SSFT), a global leader in paper-to-digital solutions, today announced that its OmniPage®Pro 11 software has received Microsoft's 'Designed for Windows XP' logo, signaling compatibility between Microsoft's new operating system and the world's most popular optical character recognition (OCR) software. As part of the 'Designed for Windows XP' logo program, ScanSoft will include information on OmniPage®Pro 11 software in the Windows XP Companion CD and offer OmniPage Pro 11 software in the solutions e-catalog that can be accessed from the Windows XP user interface.

This certification builds on the existing relationship between Microsoft and ScanSoft, whereby the two companies work together for Western and Asian OCR and ScanSoft image processing technology in Office XP. ScanSoft's OCR technology currently ships in Office XP's Document Imaging Product to support the indexing of scanned paper documents.

"Microsoft is pleased to be working with ScanSoft to deliver great computing experiences to our customers," said Shawn Sanford, group product manager for Windows XP at Microsoft Corp. "With ScanSoft technology, users can take advantage of OCR scanning capabilities in addition to the exciting new features of Windows XP."

"Our customers come to us for proven digital solutions that offer the most up-to-date scanning, editing, and formatting functionality," said Wayne Crandall, senior vice president of sales and marketing at ScanSoft. "By working with Microsoft, we feel confident that OmniPage Pro 11 will provide users of Windows XP with the ability to quickly and easily convert paper documents and image files into editable digital documents that is crucial to their business productivity."

ScanSoft's OmniPage Pro 11 software is being widely adopted as a tool to increase productivity as it saves time and expense by reducing the tedious efforts of recreating documents that are in paper form or read-only image files. The software converts all types of paper-based documents into the users' preferred office applications which enables them to edit, archive and share information without retyping. OmniPage Pro 11 supports the recognition of 114 languages and converts PDF documents that contain text, tables and graphics into fully formatted documents users can edit. OmniPage Pro extends OCR software beyond traditional scanning as customers can use it as the productivity tool to unlock and repurpose information held within PDF and other image files.

Windows XP is Microsoft's new operating system for home and business users, scheduled for release later this year. Built on an enhanced Windows 2000 engine, Windows XP is a new Windows with a new look that enables exciting experiences and establishes a new standard in power, reliability, security and simplicity.

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 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 in 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 eight million registered users of ScanSoft products. ScanSoft can be found on the Web at www.scansoft.com.

Trademark reference: ScanSoft, OmniPage, OmniPage Pro, 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 mentioned are hereby recognized and may be registered to their respective holders.

The statements in this press release that relate to future plans, events or performances, including without limitation the perceived benefits of the strategic alliance with Microsoft and customers' opting to purchase newer or more fully featured products, are forward-looking statements that involve risks and uncertainties, including risks associated with market trends, competitive factors, and other risks identified in the Company's SEC filings. Actual results, event and performance may differ materially. Readers are cautioned not to put undue reliance on these forward-looking statements that speak only as of the date hereof.

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