GHENT, Belgium, February 27, 2007 – Nuance Communications, Inc. (Nasdaq: NUAN), a leading supplier in speech and imaging solutions, today announced that it provides Telefónica Móviles España with intelligent routing technology to efficiently transfer customer service calls to the right call centre services. Implemented in July 2006, and after six months of full operation, the natural language speech application manages over 20 million customer care and promotional campaign calls per month in a completely automated way. The service is operational 24x7, driving down call times and reducing caller zero-outs. Customer satisfaction levels have increased by ten percent, as measured by means of 200,000 automated surveys made every month.

Telefónica Móviles España has been leading for more than ten years the innovation and technological improvement of the call center services, and was the first European carrier to deploy the intelligent routing technology from Nuance, the most advanced technology in the market, with the objective of managing calls as efficiently and cost-effectively as possible. The key factor is the open question “how can I help you?” that reduces caller’s interactions required to obtain the requested service. It allows callers to speak freely, reaching an automation rate of over 88 percent, thus releasing agents for more productive tasks and increasing the service quality to 96 percent.

Nuance’s Call Steering application was developed with the involvement of the experienced technical team of Telefónica Móviles España together with Nuance’s Professional Services alongside key partner Prosodie Ibérica. It runs on an open platform fully integrated in the technical structure of the call center, intelligent network and backend of Telefónica Móviles España, offering high robustness and setting new levels of innovation.

Mario Soro, Director, CRM Technology at Telefónica Móviles España, said: “This completely automated solution efficiently provides the requested service in the shortest possible time while keeping customer satisfaction high, which is a key source for cost savings and enhanced customer satisfaction. Speech recognition technology has proved to be critical here. It allows calls to be directed quickly and efficiently for all of our subscribers. It ensures callers are delivered to the correct customer services team for specific queries that they have been trained to handle, this means our customers receive the very best in customer care.”

Peter Hauser, general manager and senior vice president, Nuance Communications International, said: “Nuance recognizes the need to provide call centers with high quality, multi-functional, intelligent voice recognition and routing technologies to drive down costs, and more importantly improve the customer experience. In an industry that constantly monitors efficiency levels our technology delivers the numbers in terms of caller put through and completion. The application diverts the call to the relevant department quickly and effectively, bringing a vast improvement over lengthy touch tone menus that can prove frustrating and result in callers terminating the call.”

Efficiently and accurately routing calls is a key pain point for call centre managers; determining what the callers needs are as quickly as possible is obviously the driver of increased customer satisfaction which is every organizations’ goal. Many call centers provide too many options on their self-service menus which succeed in frustrating callers. This leads to lower automation rates as callers simply zero-out to avoid the automated system. Call Steering serves as the critical link between the caller and the most appropriate customer care solution best equipped to meet their needs, whether that be a live agent or an automated response.

About Telefónica Móviles España

Telefónica Móviles España (http://www.empresa.movistar.es) is the mobile operator of Telefónica in the Spanish market. As of September 2006, Telefónica Móviles España had most than 21 million customers and a wide catalogue of services and applications with the latest mobile technology, such as UMTS. Movistar is the brand for the mobile companies of Telefónica Group in Spain and Latin America with exception of Brazil.

About Nuance Communications, Inc.

Nuance is a leading supplier of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. Every day, millions of users and thousands of businesses experience Nuance’s proven applications and professional services. For more information, please visit nuance.com.

Nuance and the Nuance logo are trademarks or registered trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other company names or product names may be the trademarks of their respective owners.

The statements in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties, including risks associated with market trends, competitive factors, and other risks identified in Nuance’s SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to put undue reliance on these forward-looking statements that speak only as of the date hereof.