PEABODY, Mass. and GENT, Belgium, August 27, 2003 - ScanSoft, Inc. (NASDAQ: SSFT), a leading supplier of speech and imaging solutions, today announced that its VoCon SF™ embedded speech recognition engine had been selected by PEIKER as the foundation of its PEIKER Bluetooth™ voice-activated system for Chrysler Group's UConnect telematics module. The in-car, hands-free system does not require the driver to interact with a display, providing motorists with a convenient and safe way to use their mobile phones while driving. The hands-free system meets the statutory requirements that govern the use of mobile phones in vehicles in almost every country - a key driver behind the system's development.

"During development, a particularly high priority was given to the safety and comfort of the driver. ScanSoft's VoCon engine enables users to interact with the PEIKER system solely through the use of speech, without having to operate it by hand or read information from it, leading to increased safety," said Reinhard Kromer, Executive Vice President Telematics of PEIKER acustic. "ScanSoft's technology allowed us to create a customized embedded solution for Chrysler that guarantees noise robustness, enables high quality recognition, and fast response times."

The PEIKER Bluetooth voice-activated system allows motorists to use voice commands to control menu operations and select phone numbers. Motorists can receive calls, make calls using continuous voice dialing and adjust the volume of the hidden speaker. ScanSoft's VoCon SF speech engine supports over sixteen different languages allowing PEIKER to offer its hands-free system with support for German, Dutch, French, UK English, US English, Canadian French, Spanish and Mexican Spanish.

The PEIKER system connects to a motorist's individual Bluetooth-enabled cell phone in the car. To make a call, the motorist simply leaves the mobile phone in his or her briefcase, purse, or pocket and pushes a remote control button in the car that then connects the cell phone to the microphone. The motorist then states the name or number of the person he or she wants to call. Using speech recognition, the system understands the request, confirms the phone number, and then dials it. The phone number appears on the radio's display as it is being dialled. Up to five mobile phones can be registered with an individual system, which works with all Bluetooth compatible mobile phones with hands-free profile support. The system can also store up to thirty-two names and four phone numbers per name, allowing individual users sharing an automobile to access personalized settings and address books.

"We are pleased to be able to partner with PEIKER to meet Chrysler's speech recognition customization requirements. PEIKER and the ScanSoft professional services team worked closely together on this project and the result is a high-performance, hands-free unit that meets the government mandates in most countries," Peter Hauser, senior VP & general manager, International, at ScanSoft. "This collaboration is another example of our on-going commitment to deliver innovative speech solutions that meet the unique requirements of the automotive industry."

Increased Performance in Noisy Environments

Interface and echo suppression software has been integrated into the system to enable hands-free use at speeds of over 200km per hour. The system also mutes the radio during active telephone calls. A microphone and a remote control are the only parts of the Bluetooth hands-free system visible to the motorist. The system was initially developed for the dealer-installed version of the Chrysler Group's UConnect telematics module, and is now also available for other vehicles through an OEM installation, or off-the-shelf to consumers.

About VoCon SF

VoCon SF is used by developers to add highly accurate voice command and control capabilities to a wide range of embedded hardware and software applications, including those in automotive, telematics, consumer electronics and mobile communications markets. VoCon SF distinguishes itself from other solutions through its rapid development tools, support for over 16 languages, market-leading accuracy levels, and in its ability to scale from DSP to RISC platforms.

About PEIKER acustic

PEIKER acustic ranks among the leading producers of a wide range of accessories for the electronic telecommunication sector. Founded in 1946, PEIKER acustic enjoys the benefit of decades of experience with an outstanding degree of "know-how" in the field of acoustics. Innovative product concepts provide PEIKER acustic with the added benefit of having achieved a leading position within the voice and data communications industry sector.

About ScanSoft, Inc.

ScanSoft, Inc. is a leading supplier of speech and imaging solutions that are used to automate a wide range of manual processes-saving time, increasing worker productivity and improving customer service. For additional information on the company, please visit www.scansoft.com.

ScanSoft and VoCon SF are trademarks or registered trademarks of ScanSoft, Inc. in the United States and 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 ScanSoft'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.

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