Internal Revenue Service Selects ScanSoft's OmniPage Pro for its Digital Imaging Needs

PEABODY, Mass., - October 29, 2001 ScanSoft®, Inc. (NASDAQ: SSFT), a global leader in paper-to-digital solutions, today announced that the Internal Revenue Service (IRS) has selected ScanSoft's OmniPage Pro® 11 software as the standard for the agency's front office scanning activities. Under terms of the agreement, the IRS has purchased a volume license for OmniPage Pro 11 which will be used in offices around the country.

The IRS will be utilizing OmniPage Pro for a number of purposes with the goal of improving operational effectiveness. OmniPage Pro will help the IRS save time and money by converting large numbers of legacy paper documents into efficient and re-usable electronic documents. The license of OmniPage Pro builds upon the IRS existing use of ScanSoft's OmniForm® electronic forms product, which currently serves as the agency's standard design toolset for electronic forms design and conversion.

"We are pleased that the IRS, one of the world's most recognized organizations, has standardized on our OmniPage solution to help it meet the needs of e-government initiatives and improve internal efficiency," said Paul Ricci, chairman and CEO of ScanSoft, Inc. "We believe this commitment in ScanSoft's paper-to-digital solutions is a reflection of the strength of our products and the value they bring to any market."

OmniPage Pro offers the industry's fastest, easiest way to transform paper documents into editable, digital documents. The software has been widely adopted as a tool to increase productivity, saving time and expense by reducing the tedious efforts of recreating documents that are in paper form or read-only image files. The solution is intended to not only increase productivity by incorporating digital documents into the digital workflow, but also by providing a means to work with documents in new ways. With an ability - unmatched among its peers - to convert PDF files into program files, OmniPage Pro provides access to a wealth of information previously "locked" in PDF format, allowing content to be easily included in other document files.

OmniPage Pro software provides the industry's most comprehensive list of features and capabilities among OCR solutions, from intelligent proofing and color preservation to one-click operation and unprecedented accuracy. For additional information on OmniPage Pro, click here.

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 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, PaperPort, PaperPort Deluxe, PaperPortOnline, SimpleSearch, OmniPage, OmniPage Pro, TextBridge, 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 Company notes that the statements in this release that relate to future plans, events, performance, including without limitation the perceived benefits of the agreement, are forward-looking statements subject to risks and uncertainties that may cause the Company's actual results to differ materially. These risks and uncertainties include, but are not limited to, engineering delays, market acceptance, the impact of competitive products and other risks detailed from time to time in the Company's SEC reports. Readers are cautioned not to place undo reliance on these forward-looking statements, which speak only as of the date hereof.

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