PEABODY, Mass., September 16, 2002 - ScanSoft, Inc. (Nasdaq: SSFT), the leading supplier of digital imaging, speech and language solutions, confirmed that it is repurchasing today 1.46 million shares of its common stock from L&H Holdings USA, Inc. at a price of $4.79 a share, totaling $7 million.

This transaction is part of a definitive agreement between ScanSoft and L&H that provides for an orderly disposition of the approximately 7.4 million shares of ScanSoft common stock that L&H received as consideration when ScanSoft acquired the L&H Speech and Language Technologies business in December 2001. L&H will include the approximately six million remaining shares in a ScanSoft-facilitated, underwritten public offering to be completed no later than February 15, 2003.

"ScanSoft's completion of the first phase of the share disposition with the buyback of nearly 1.5 million shares underscores its commitment to preserving shareholder value," said Paul Ricci, chairman and CEO of ScanSoft. "Through the forthcoming underwritten public offering, ScanSoft intends to place the remaining six million L&H-owned shares in the hands of long-term, fundamental investors."

About ScanSoft, Inc.

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 the ScanSoft logo are registered trademarks or trademarks of ScanSoft, Inc. in the United States and other countries. All other company or product names mentioned may be the trademarks of their respective owners.

Safe Harbor Statement
Except for the historical information contained herein, this press release includes forward-looking statements within the meaning of Section 21(e) of the Securities Exchange Act of 1934. These statements are based on ScanSoft's current expectations and estimates as to prospective events and circumstances that may or may not be in ScanSoft's control and as to which there can be no firm assurances given. These forward-looking statements are subject to risks and uncertainties; there can be no assurance that any of these forward-looking statements may prove to be correct and actual results may differ materially. These risks and uncertainties include, but are not limited to, the risks related to the company's ability to complete the underwritten public offering in a timely manner, potential volatility in ScanSoft's stock price, uncertainty in the market and market acceptance regarding L&H's disposition of ScanSoft common stock, 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.

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