BURLINGTON, Mass. August 1, 2007– Nuance Communications, Inc. (NASDAQ: NUAN), a leading supplier of speech and imaging solutions, today announced that its Dictaphone Healthcare Solutions division has achieved another milestone in the rapidly evolving speech recognition for healthcare market by crossing the 1,000th customer threshold with its PowerScribe® solution. Dictaphone has seen broad adoption of its speech recognition reporting solution for radiology across multiple healthcare organizations of varying sizes and IT budgets, and in addition to its growing list of 1,000 customers is proud to report that PowerScribe:

Saves the radiology industry an estimated $200 million+ per year in transcription costs

Is used by more hospitals, teaching hospitals and imaging centers than any other speech recognition offering

Continues its growth momentum in 2007, adding customers at a rapid pace, including such prestigious institutions as Yale-New Haven Hospital, Saint Barnabas Medical Center, New York-Presbyterian Hospital and University of Connecticut Medical Center

“It is critical that we have one complete solution that quickly and reliably delivers core radiology reporting, critical results management and diagnostic support technologies,” said Michael Matthews, director of clinical information systems, Department of Diagnostic Radiology Yale-New Haven Hospital. “Our radiological staff needs the control, consistency and flexibility to rapidly complete a report anytime and anywhere.”

Yale-New Haven Hospital, recently named to the U.S. News & World Report’s Honor Roll as one of the nation’s top hospitals, has selected PowerScribe as its speech recognition solution for high-efficiency radiology reporting. PowerScribe will be used by Yale-New Haven’s 118 radiological staff to reduce turnaround time for the more than 365,000 reports processed annually.

“Speech recognition reporting systems such as PowerScribe have become requisite for radiology departments and imaging centers that want to become highly efficient and offer market leading service to their referring clinician base,” said Peter Durlach, senior vice president, marketing and product strategy, Dictaphone Healthcare Solutions, Nuance. “We are extremely gratified that 1,000 customers have chosen PowerScribe as their mission critical radiology reporting solution. We expect this number to continue to grow rapidly as we evolve the PowerScribe platform, add functionality and expand our industry partnerships. PowerScribe is the speech recognition solution of choice because of its ability to answer the demand for faster report turnaround time, reduced transcription costs, higher levels of satisfaction from referring physicians and enhanced patient care.”

Nuance is driving the digitization of patient information with the world’s most accurate speech and language technologies. For more information on Dictaphone PowerScribe, go to http://www.nuance.com/powerscribe/. For sales and pricing information, please call 1-888-350-4836.

Dictaphone Healthcare Solutions Division

Nuance’s Dictaphone Healthcare Solutions Division provides comprehensive dictation and transcription solutions and services that improve the way patient data is captured, processed and used, changing the way people process and work with medical information. Through the integration of speech recognition and natural language processing within existing health information management workflow, Nuance’s Dictaphone Healthcare Solutions offerings help healthcare organizations save money and improve patient care by improving the turn around time, accuracy and usability of their medical documentation. For more information, please visit http://www.nuance.com/dictaphone/.

Nuance Communications, Inc.

Nuance (NASDAQ: NUAN) is a leading provider 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 www.nuance.com.

Nuance, the Nuance logo, Dictaphone, and PowerScribe 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.