PEABODY, Mass., - October 30, 2001 ScanSoft®®, Inc. (NASDAQ: SSFT), a worldwide leader in paper-to-digital solutions, today announced that ScanSoft's PaperPort Deluxe® and TextBridge® Pro Millennium are provided as an integrated solution to Xerox Corporation's (NYSE: XRX) "WorkCentre Pro" family of digital multi-function systems. The companies are building on an established relationship that began with Xerox defining software needs for their digital devices. This extended collaboration will now allow the two companies to offer customers a sophisticated client-based software solution for Xerox's WorkCentre Pro family of multi-function systems.

Xerox's WorkCentre Pro line of devices offers users copying, network printing, faxing and scanning as a total solution for small workgroups and businesses. ScanSoft's market leading paper-to-digital software solutions allow users to integrate paper documents into their daily workflow. Through the combination of the software and hardware, users can walk up to the WorkCentre Pro system, scan their paper documents, and direct them to their desktop or their workgroups shared workspace. This capability reduces the need for standalone desktop scanning devices and enables users to capture, convert and share their paper documents digitally with others within their organizations.

Once scanned, the documents can be indexed and stored in the PaperPort desktop allowing users to search and find their documents digitally versus the slow and tedious manual process of looking in their file cabinets. Through PaperPort's intuitive user interface, users can drag and drop the documents to any of their office applications including making them an attachment to their Microsoft Outlook e-mail notes. In addition, users can convert their documents into text that they can edit without having to retype them. Contracts can be converted to Microsoft Word, spreadsheets to Microsoft Excel or collaterals to HTML for quick posting to web sites.

"ScanSoft and Xerox have a long and successful history of bringing the business market critical, best-of-breed productivity solutions," said Wayne Crandall, senior vice president of sales and marketing for ScanSoft. "We are working together to address one of the major challenges present in today's businesses: bridging the gap between the paper and the digital worlds in a single solution."

Multi-function systems combine printing, copying, scanning and faxing into a single device to enhance office productivity. The WorkCentre Pro family of products brings these essential multi-function capabilities to smaller workgroup and office users to support the digital office in new ways with more affordable, high-quality products. By incorporating ScanSoft's PaperPort and TextBridge solutions into the WorkCentre Pro family, businesses of all sizes will be able to not only conduct their business from a single device but also scan, store, retrieve, edit, and manage their business digitally.

"Xerox is committed to improving office productivity and supporting all customers with new hardware and software solutions," said Gil Hatch, president of Xerox Office Systems Group. "Our continued relationship with ScanSoft allows us to provide the small workgroup and office with functionality that before could only be found in larger organizations."

ScanSoft software will now be bundled with the WorkCentre Pro 412 and WorkCentre Pro 416Si models. Included with each system is one license of ScanSoft software. Additional licenses can be purchased by visiting www.scansoft.com/products/wcpro/. For more information on PaperPort, Textbridge, ScanSoft and other ScanSoft products, please visit www.scansoft.com/

About Xerox Corporation

Xerox Corporation is the leading provider of color and monochrome digital printers, copiers and related document processing equipment. Xerox also delivers solutions, services, software and supplies so that people in homes, offices and corporate and production-printing environments can create, manage and share ideas through paper or digital documents.

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 developers 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. Companies which have chosen ScanSoft's cutting-edge products and technologies include Brother, Canon, Epson, Fujitsu, Hewlett-Packard Company, 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, Pagis, OmniForm, eOmniForm, OmniPage, and TextBridge, 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 release that relate to future plans, events or performance, including without limitation, the perceived benefits of the agreement with Xerox Corporation, are forward-looking statements that reflect the Company's current expectations, assumptions and estimates of future performance and economic conditions. The Company cautions investors that these forward looking statements involve risks and uncertainties that may cause actual results to differ materially from those expressed or implied in such forward looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: continued demand for the Company's products and services; the ability of the Company's alliances to succeed and in particular market acceptance and the impact of competitive products; and other risks as identified in the Company's SEC filings. The Company disclaims any intention or obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events.

Contact Information