LM Sistemas Selects ScanSoft RealSpeak for Distribution in Brazil and Argentina

Leading Integrator and Distributor of Telecommunications Solutions to Expand ScanSoft's Market Penetration of Text-to-Speech in South America

SAO PAULO, Brazil and PEABODY, Mass., April 25, 2002 - ScanSoft Inc. (Nasdaq: SSFT), a leading supplier of imaging, speech and language solutions, today announced that LM Sistemas, a Brazilian developer and integrator of telecommunications solutions, has signed an agreement to distribute ScanSoft's RealSpeak™ text-to-speech (TTS) product. It was also announced that LM Sistemas has created a new division to focus on the distribution of ScanSoft® speech products and to provide technical support to developers and integrators of speech-enabled applications in South America.

ScanSoft's RealSpeak is the market-leading technology for converting text into human-sounding speech. RealSpeak is widely used within telecommunications applications to automate a wide range of content services, including the delivery of email messages, stock quotes and directory information. Under the terms of the agreement, LM Sistemas will sell RealSpeak to systems integrators, application developers, OEMs (original equipment manufacturers) and VARs (value added resellers) within the region.

"The text-to-speech market is experiencing rapid growth, and LM Sistemas is certain that the natural voice quality of ScanSoft's RealSpeak will add extra impetus to the acceptance this technology. The benefits of RealSpeak will bring our VARs additional revenue opportunities and their clients gains in productivity and overall customer satisfaction," said Rogério Castagnoli, director of marketing for LM Sistemas.

LM Sistemas will target the Brazilian and Argentinean markets, incorporating RealSpeak into its VARs' telecommunications solutions to enhance the range of their applications, including voice portals, e-mail readers and unified messaging systems. In addition to the telecommunications market, LM Sistemas will offer RealSpeak to mobile computing, automotive and telematic service suppliers.

No other text-to-speech product matches the quality and language support delivered by RealSpeak. By providing a single application programming interface (API) for 19 languages, including Brazilian Portuguese and Spanish, RealSpeak is the fastest and most affordable way to develop speech-enabled applications for global markets. This, coupled with its unmatched support for leading chip-sets and operating systems, has made RealSpeak the market-leading solution for adding speech capabilities to games, PC/multimedia, automotive, telephony and embedded applications.

"The selection of ScanSoft RealSpeak by LM Sistemas is a strong endorsement of the quality and leadership of our language products," said Peter Hauser, senior vice president and general manager, International, at ScanSoft. "We are pleased to have gained such a strong partner in South America, and we have confidence that LM Sistemas will rapidly expand our presence in this growing market."

About ScanSoft® RealSpeak™

ScanSoft's RealSpeak is the market-leading product for converting text into human-sounding synthesized speech. The technology is used for a wide range of applications, including delivering emails for unified messaging systems, providing prompts for interactive voice response (IVR) applications, and speech-enabling mobile, automotive, game and PC/multi-media applications. ScanSoft RealSpeak offers unmatched support for hardware systems, including Hitachi, Intel® (Pentium®, Strong ARM® and XScale®), MIPS® and NEC®, as well as operating systems, including Linux®, Microsoft® Windows® and Windows® CE, and Sun Solaris®.

RealSpeak offers a single, standardized application programming interface (API) that enables the deployment of speech-enabled applications in 19 languages: US and UK English, German, French, Dutch & Belgian Dutch, Castilian and Mexican Spanish, Italian, European and Brazilian Portuguese, Norwegian, Polish, Swedish, Danish and Cantonese & Mandarin Chinese, Korean and Japanese.

About LM Sistemas

LM Sistemas is a Brazilian company that develops, integrates and distributes solutions for the telecommunications and mobility sectors using advanced technologies. Since 1991, the company has offered complete solutions and enabling technologies in support of enterprise productivity, CRM (Customer Relationship Management) and Sales Force Automation. Website: www.lm.com.br

About ScanSoft

ScanSoft, Inc. (Nasdaq: SSFT) is the leading supplier of imaging, speech and language solutions that are used to automate a wide range of manual processes - saving time, increasing worker productivity and improving customer service. For more information regarding ScanSoft® products and technologies, please visit www.ScanSoft.com.

Trademark reference: ScanSoft and RealSpeak are registered trademarks or trademarks of ScanSoft Inc. in the United States and other countries. All other company names or product names referenced herein may be the trademarks of their respective owners.

The Company notes that the statements in this release that relate to future plans, events, and performance, including, without limitation, the projected shipment dates and customers' opting to upgrade to newer or more fully featured products, 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, market acceptance, engineering delays, quality assurance testing delays, contractual negotiations, successful completion of beta site testing, the scheduling of orders, changes in operating systems, a significant change in the competitive environment, timely delivery by component suppliers 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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