Burlington, MA, October 9, 2007 — Nuance Communications, Inc. (NASDAQ: NUAN), a leading supplier of speech and imaging solutions, today announced Dallas’ Baylor Health Care System, ranked as one of America’s Best Hospitals for the fifteenth consecutive year by U.S. News & World Report, has selected Dictaphone’s iChart hosted transcription services, as well as dictation, transcription and speech recognition solutions from Dictaphone as they attempt to lower costs, improve turnaround time and enhance the quality of its clinical documentation. The implementation will include multiple solutions from Nuance, spanning 12 facilities and affecting the documentation process of nearly 3,800 physicians. Baylor anticipates the equipment and software will have positive impact on escalating costs associated with growing medical documentation volumes.

“Managing documentation is a constant and growing challenge for any organization,” said Dana Choate, Baylor Health Care System’s director of health information management. “It is not easy to maintain high levels of accuracy and quality in the midst of ever increasing report volumes. The need to provide clinicians with rapid access to reports is a challenge healthcare organizations experience on a large scale, daily.”

Dictaphone’s technology will allow Baylor to meet its prevailing goal of delivering safe, quality and compassionate health care while maintaining its financial stewardship.

“We have enjoyed tremendous momentum in our healthcare business in recent months, including a number of exceptional new partners and customers, but Baylor stands out as one of the nation’s finest health care systems,” said Peter Durlach, senior vice president, marketing and product strategy, Dictaphone Healthcare Solutions, Nuance. “We see this new relationship as a testament to the clear benefits of our solutions, but also as an example of the continued move by leading healthcare provider organizations to standardize on Dictaphone speech driven clinical documentation solutions across the enterprise.”

Baylor Healthcare System will use Dictaphone’s iChart hosted transcription solution as well as the Dictaphone Enterprise Workstation™, PowerScribe® and EXSpeech® products. They will also be moving their outsourced transcription work to Dictaphone’s Managed Services. Using these solutions, physicians on the medical staff at many of Baylor hospitals will be able to dictate medical notes from any telephone or internet-connected device, and Dictaphone’s speech recognition technology will turn those notes into electronic documentation. The solution is designed to enable healthcare providers, like Baylor, to make more efficient use of resources by allowing transcriptionists to focus primarily on document quality not document generation.

All of the Dictaphone applications will be integrated with the organization’s hospital information systems as part of an overall technology initiative undertaken by Baylor Health System this year. The new solutions will be in used in 12 of Baylor Health Care System facilities:

Baylor University Medical Center at Dallas

Baylor All Saints Medical Center at Fort Worth

Baylor Medical Center at Southwest Fort Worth

Baylor Medical Center at Garland

Baylor Regional Medical Center at Grapevine

Baylor Regional Medical Center at Plano

Baylor Medical Center at Waxahachie

Baylor Jack and Jane Hamilton Heart and Vascular Hospital

Baylor Institute for Rehabilitation

Baylor Specialty Hospital

Our Children's House at Baylor

The Heart Hospital Baylor Plano

Baylor Health Care System

Baylor Health Care System is a network of hospitals, primary care and specialty care centers, rehabilitation clinics, affiliated ambulatory surgery centers and the Baylor Research Institute. One of the largest private-sector employers in Dallas/Fort Worth, Baylor employs more than 16,000 people and has more than 3,800 physicians on its medical staffs. For fiscal year 2006, Baylor Health Care System will report $407 million in community benefit to the Department of State Health Services.

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 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, and Dictaphone are registered trademarks or trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other trademarks referenced herein are the property of their respective owners.