BURLINGTON, Mass. — July 15, 2008 — Nuance Communications, Inc. (NASDAQ: NUAN), today announced that Thomas Beaudoin will be named executive vice president and chief financial officer of Nuance. Headquartered in Burlington, Mass., and reporting to Paul Ricci, Nuance’s chairman and CEO, Mr. Beaudoin will assume responsibility for the Company’s financial operations on August 12, 2008. Most recently, Mr. Beaudoin served as president, CFO and COO of Polaroid Corporation.

“Tom’s record of impressive achievement in operations and management is precisely aligned with Nuance’s business objectives and growth strategy,” said Paul Ricci, chairman and CEO, of Nuance. “Throughout an established career, Tom has developed an exemplary combination of professional skills, leadership qualities and business judgment that make him keenly aware of the opportunities and challenges we face as an organization today. I am pleased to welcome Tom to the executive team and speaking on behalf of the company, we look forward to his many contributions.”

“Nuance makes this transition from a position of strength in the business, with ongoing performance among our divisions, active product and service launch cycles, significant new agreements with marquis customers and partners, and record cash flows,” Ricci added. “We look forward to discussing our full third quarter performance in mid-August.”

Mr. Beaudoin brings more than 30 years of experience providing financial and operational leadership and support to small businesses and global enterprises. As president, COO and CFO of Polaroid he was responsible for the strategic and operational transformation of the company, a privately held computer electronics and imaging company. During his tenure, Mr. Beaudoin strengthened the company’s global capabilities and infrastructure to support accelerated growth in its consumer electronics business. Demonstrating superior financial and operating management skills, Mr. Beaudoin reorganized the global finance team to support the company’s growing operations and evolving priorities.

“Nuance has quickly and confidently emerged as one of the most influential software companies of the decade,” said Tom Beaudoin. “I am excited to join such a dynamic organization, one that clearly has tremendous potential for growth and success. I look forward to working with the entire Nuance team to deliver even stronger results for our shareholders, customers and employees.”

Prior to his position at Polaroid, Tom Beaudoin’s career bears a series of highlights and achievement that includes:

Parametric Technology Corporation: As senior vice president, Finance, and interim CFO, Mr. Beaudoin led a reorganization of global finance, revised the corporate strategy and planning processes and reengineered all back office processes to improve organizational alignment.
i2 Technology: Served as CFO for Infinite Supply, where he was recruited to lead an anticipated spin-out and IPO for this division of i2 Technology.
Compaq Computer Corporation: Held a variety of executive, operational and financial management positions during a career that spanned two decades at Digital Equipment Corporation and Compaq Computer Corporation. During his tenure, Mr. Beaudoin led the combined Enterprise Computer Group and Compaq Services finance organizations.

Mr. Beaudoin received his Masters of Business Administration, and Bachelors of Science, Business Administration in Accounting, degrees from Babson College. He resides in Acton, Mass. with his wife and children.

James Arnold to Transition from CFO Position

Jamie Arnold will transition from the role following the completion of Nuance’s fiscal third quarter 2008 financial reporting in mid-August. Mr. Arnold has been with Nuance since 2004 and has helped drive the company toward a sustained record of strong growth in revenues, operating margins and cash flows.

“Throughout his tenure, Jamie has played an instrumental role with the company, seeing the organization through numerous acquisitions, managing our complex accounting policies and procedures and helping the executive team reach this natural transition point,” said Paul Ricci. “I personally want to thank Jamie for his many contributions and undeniable dedication to the company and our success. We wish Jamie and his family all the best for the future.”

NASDAQ Marketplace Rule 4350

In connection with his appointment, Mr. Beaudoin was granted an inducement grant of stock options and restricted stock units. Mr. Beaudoin received an option to purchase 100,000 shares of Nuance common stock, with an exercise price equal to the fair market value of Nuance common stock on the date of grant. Mr. Beaudoin also received awards of restricted stock units in the amount of 125,000 shares. The stock options and 50,000 of the restricted stock units are subject to time-based vesting. The remaining 75,000 shares of restricted stock units are subject to performance-based vesting. The vesting of all stock options and restricted stock units is subject to Mr. Beaudoin’s continued employment with Nuance. The options and restricted stock units were approved by the compensation committee of the company’s board of directors and granted as an inducement material to the recipients’ employment with Nuance in accordance with NASDAQ Marketplace Rule 4350(i)(l)(A)(iv).

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.

Trademark reference: Nuance, the Nuance logo PaperPort and OmniPage are registered trademarks or trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. EFI and Fiery are registered trademarks of Electronics for Imaging, Inc. in the U.S. Patent and Trademark Office and/or certain other foreign jurisdictions. All other company names or product names referenced herein may be the trademarks of their respective owners.

Safe Harbor and Forward-Looking Statements

Statements in this document regarding the appointment of Thomas Beaudoin as Nuance’s chief financial officer, Nuance’s third quarter financial performance and cash flow from operations, and any other statements about Nuance managements’ future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” or “estimates” or similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: fluctuations in demand for Nuance’s existing and future products; economic conditions in the United States and abroad; Nuance’s ability to control and successfully manage its expenses and cash position; the effects of competition, including pricing pressure; possible defects in Nuance’s products and technologies; the ability of Nuance to successfully integrate operations and employees of acquired businesses; the ability to realize anticipated synergies from acquired businesses; and the other factors described in Nuance’s annual report on Form 10-K for the fiscal year ended September 30, 2007 and Nuance’s quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. Nuance disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this document.