PEABODY, Mass., September 20, 2002 - ScanSoft, Inc. (Nasdaq: SSFT), the leading supplier of digital imaging, speech and language solutions, today announced that its board of directors has adopted a policy intended to restrict trading in ScanSoft securities for insiders and affiliates, including all officers and directors of ScanSoft, and Xerox Corporation. The policy provides that all insiders and affiliates file individual trading plans according to Rule 10b5-1 of the Securities and Exchange Commission no less than six months in advance of any trading. Rule 10b5-1 trading plans provide for the periodic disposition of shares, according to a predetermined schedule of amounts and dates, thereby eliminating the potential ability of insiders and affiliates to use information to the disadvantage of other shareholders.

"ScanSoft's board adopted the 10b5-1 program to ensure the highest level of integrity in the trading of ScanSoft stock," said Paul Ricci, chairman and CEO of ScanSoft. "In view of the information available to insiders and affiliates concerning strategic transactions, business prospects and capital market activities, the board believed that the program was the only way to ensure equal access to information by all shareholders."

10b5-1 plans can only be filed during an open trading window. ScanSoft's trading window is currently closed and will reopen two days after the company reports third quarter financial results, expected around November 1, 2002.

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 [Update]
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 implement the 10b5-1 plans in a timely manner, the refusal by insiders and affiliates to adopt a 10b5-1 trading plan, the potential volatility in ScanSoft's stock price, uncertainty in the market and market acceptance regarding the disposition of ScanSoft common stock by insiders and affiliates pursuant to the 10b5-1 plans, 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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