BURLINGTON, MA and and AACHEN, GERMANY — March 2, 2009 — Nuance Communications, Inc. (NASDAQ: NUAN), a leading provider of speech solutions, today announced One-Shot Destination Entry technology on Microsoft’s Auto platform at Embedded World, taking place in Nuremberg, Germany, March 3-5, 2009. Nuance will be demonstrating the technology in the Microsoft Automotive Business Unit Partner booth in Hall 11.0, Stand 11-414, and at the Nuance Automotive Usability Forum taking place in St. Goar, Germany on March 11.

Nuance’s One-Shot Destination Entry is based on the latest version of Nuance VoCon 3200, the industry-leading speech recognition engine that now supports new search algorithms to allow one-shot, multi-slot entry in just one spoken command. Instead of walking through a multi-step dialog and responding to independent prompts for city name, street name and house number, the user can simply speak the address in one shot, stating for example, “196 Sunset Boulevard, San Francisco, California.”

“We’re seeing strong demand for voice-driven user interfaces that control today’s automotive telematics, navigation and infotainment systems,” says Greg Baribault, director of marketing, Microsoft ABU. “The combination of Nuance’s state-of-the-art speech technology and the Microsoft Auto platform enables auto manufacturers and suppliers to quickly and easily build intuitive and easy-to-use speech-enabled solutions that immediately deliver increased consumer value.”

The increased demand for natural language user interfaces is due in part to the need to reduce driver distractions. A recent study on in-car distraction implemented by the Technical University of Braunschweig, Germany revealed that speech recognition combined with Natural Language Understanding (NLU) technology significantly reduces distractions and improves driving performance while using navigation systems in the car. The study compared the impact of conventional destination entry by voice requiring individual confirmation of city name, street name and house number, and a more advanced user interface requiring a single confirmation (both versus manual operation). The system supporting single confirmation reduced the reaction time by 47 percent, while the conventional speech input for city, street and address reduced reaction time by 24 percent.

“Nuance’s speech technology on the Microsoft Auto Platform has been a driving force in bringing voice user interfaces to mass market platforms like the popular Ford SYNC and Fiat Blue&Me,” says Arnd Weil, general manager, Nuance Automotive Solutions. “Nuance’s proven speech technology combined with Microsoft’s flexible platform architecture allows for quick application development and implementation of new features, a warrant for innovation and competitive leadership.”

Nuance’s VoCon 3200 speech recognition engine currently supports 23 languages. This coupled with Nuance’s text-to-speech engine that supports 34 languages is fully integrated into Microsoft’s Auto platform, and is available today for the world’s auto manufacturers and suppliers.

About Microsoft Auto

Microsoft Auto 3.1 is designed to allow carmakers and Tier One suppliers to more quickly and easily implement state-of-the-art infotainment systems. With Microsoft Auto, applications are developed for the platform rather than for a specific device model, so development costs can be amortized through easy design portability. Microsoft Auto 3.1 provides an integrated middle-ware stack and hardware reference design. Built on the proven Windows® Embedded CE 6.0 operating system, Microsoft Auto also boasts an open architecture that allows developers to easily extend functionality with their own custom solutions. To help ensure solutions remain current, the system architecture and tools allow for easy system updates after installation.

About Nuance Automotive

Today, Nuance Automotive solutions can be found worldwide in more than five million cars, representing more than 100 models from all major car manufacturers, including Mercedes, Fiat and Ford. Nearly all of the portable navigation device manufacturers, including Tom Tom, Magellan, Medion and Falk are already delivering improved safety and ease of use for the automotive consumer by using Nuance speech recognition to enable voice destination entry or speech synthesis for voice guidance. For more information, please visit: www.nuance.com/Automotive.

About Nuance Communications, Inc.

Nuance 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, VoCon and the Nuance logo are registered trademarks or brands of Nuance Communications, Inc. or its subsidiaries in the United States of America and other countries. All other companies or product names are the property of the respective owners.

The statements in this press release, relating to future plans or future events or services, are forward-looking statements which are subject to specific risks and uncertainties. These could involve particular market trends, competition factors and other risks described in the documents submitted to the US Securities and Exchange Commission. The actual results, events and services may vary significantly from the forecasts. The reader is warned not to rely on these forward-looking statements without reservation, since these are simply reflections of the current situation.