PEABODY, Mass., November 15, 2004 - ScanSoft, Inc. (Nasdaq: SSFT), a global leader of speech and imaging solutions, today announced that it has signed an agreement to acquire ART Advanced Recognition Technologies Inc., a leader in embedded speech and handwriting for wireless mobile devices.

As businesses and consumers increasingly demand reliable and immediate access to content, data and images, today's mobile devices need to be more accessible and user-friendly for a global population. ART solutions provide state-of-the-art speech recognition technologies that let people use voice-activated controls on their mobile device to set meetings, call people, read emails and retrieve information from enterprise applications.

With the acquisition of ART, ScanSoft expands its portfolio of embedded speech solutions to include a deep set of resources, expertise and relationships with the world's leading mobile device manufacturers and service providers. ART specializes in applications that create voice-based, conversational interfaces that enable users to dial by voice and manage and access their contacts for mobile devices. The handwriting recognition software for smartphones extends the applications and enables Multimodal activation. The combination of ScanSoft and ART also provides an opportunity to help accelerate the convergence of device and server-based speech applications for the world's leading telecommunications carriers and device suppliers.

"We are excited to welcome ART to ScanSoft, as the company brings an impressive portfolio of technology, expertise and innovation for the rapidly growing mobile device market," said Paul Ricci, chairman and CEO, ScanSoft. "With nearly 600 million mobile devices shipped each year, the market opportunity is significant, and offers a broad opportunity for us to bring speech interfaces for mobile devices to the next level. We look forward to the combined strength of our organization and expertise."

The transaction has been approved by both companies' boards of directors and is expected to close in January 2005. The transaction is valued at approximately $21.5 million, net of ART's expected closing cash balance of $5 million. Consideration comprises cash payments of approximately $5 million due at closing, net of the estimated closing cash balance, and $16.5 million due in December 2005.

Today, more than 30 manufacturers worldwide have implemented ART solutions in more than 40 million devices around the world, including cellular phones, smart phones, PDAs, and automotive systems. Its current customer portfolio includes many of the leaders in the wireless and device industries, including Analog Devices, Agere Systems, Hitachi, LG Electronics, Intel, Mitsubishi Electric, Motorola, NEC, Panasonic, Qualcomm and Texas Instruments.

"The industry has shifted rapidly to devices with greater connectivity, functionality and performance which has created growing demand for simplified, familiar interfaces that are accessible to users across the globe," said Yakov Shulman, acting CEO and vice president of sales, at ART. "ScanSoft and ART individually have been working diligently toward the goal of creating universal, speech-based interfaces for mobile devices. By joining forces with ScanSoft, we will benefit from a tremendous breadth of resources and global reach. Together, our resources, expertise and market penetration will accelerate these efforts and put new, innovative speech capabilities in the hands of the billions of mobile phone users around the world."

About ART Advanced Recognition Technologies

Established in 1990, ART is the acknowledged market leader in embedded speech and handwriting recognition software for mass-market mobile devices. With a decade of award-winning innovation behind it, ART develops and markets technologically superior solutions for the control and command of mobile devices through the human voice and natural handwriting. The company's proprietary technologies provide next-generation user interface solutions for cellular handsets, smartphones, mobile communicators, PDAs and handhelds, and automotive systems.

Today, ART's embedded software-only solutions are deployed in dozens of product lines from industry leaders such as Motorola, LGE, Xelibri by Siemens, Panasonic, Mitsubishi, NEC, BenQ, Pogo, Logitech, Emblaze mobile, GVC, Capitel, Quanta, Compal, Inventec, Casio, Maxon, RAKS, Siemens Automotive, Franklin, PaceBlade, Hitachi, Sierra Wireless and others. ART has strategic and technological partnerships with industry leaders including: Texas Instruments, Qualcomm CDMA Technologies, Freescale, Intel, Infineon, Agere, ADI, TTPCom, DSPG, Ceva, Microsoft, Symbian, UIQ, Series 60, SVOX, Accelent Systems, Renesas, Persay, e-sim, Broadcom, Clarity, Teleca, Pegasus and others.

Additional information about ART is available at www.artcomp.com.

About ScanSoft, Inc.

ScanSoft, Inc. (Nasdaq: SSFT) is the global leader of speech and imaging 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.

This press release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements relating to the ability of ScanSoft to realize the anticipated benefits from the acquisition of ART; the growth of the speech industry and the demand for speech solutions; future demand for, performance of, and opportunities for growth in ScanSoft's speech solutions; future revenue contributions from relationships with ScanSoft's partners; potential synergies from the ART acquisition; the continued strength of existing products, services and relationships as well as the introduction of new products, services and relationships; the market for ScanSoft's products; and ScanSoft's strategic and operational plan. Such statements are based on current expectations that are subject to a number of risks and uncertainties, and actual results may differ materially. These risks and uncertainties include, without limitation, the following: difficulties with integrating product plans and operations of acquired businesses and the accounting effects of such acquisitions on ScanSoft's operating and financial results; fluctuations in demand for ScanSoft's existing and future products; economic conditions in the United States and abroad; ScanSoft's ability to control and successfully manage its expenses, inventory and cash position; the effects of competition, including pricing pressure; possible defects in products and technologies; and ScanSoft's dependence on OEM customers. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in ScanSoft's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2003, and its most recent quarterly reports on Form 10-Q. ScanSoft undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this document.

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