VOICE BIOMETRICS, New York, May 14, 2008 – Nuance Communications, Inc. (NASDAQ: NUAN), the world’s leading supplier of speech and imaging solutions, today, showcased the company’s continued emphasis on caller authentication solutions at the Voice Biometrics Conference in New York City. Nuance solutions support a broad range of authentication options for Call Center interactions whether through automated systems or live agents.

Nuance’s portfolio of authentication solutions for the Call Center has been expanded beyond its popular speaker verification solutions and toward configurable multi-factor systems that can handle a mix of inputs from ANI, DTMF, speech and voice biometric samples. This has come at the request of the numerous customers looking to enhance their authentication capabilities leveraging Nuance’s capabilities. To highlight Nuance’s increasing enthusiasm about the growing interest in authentication solutions, the company has also named industry veteran and authentication expert Chuck Buffum as vice president, Caller Authentication Solutions.

Buffum will build upon Nuance’s legacy and expertise in voice authentication which has garnered the attention of companies around the world. There are approximately 300 customers currently using Nuance as their partner for secure voice interactions. Today, Nuance holds 17 patents for its innovation in the area of voice biometric technologies and a general portfolio of nearly 1,000 patents and patent applications.

“Enterprises are looking for leadership in the design and implementation of caller authentication solutions, including voice biometrics, for their call centers,” said Chuck Buffum, vice president, Caller Authentication Solutions. “The opportunity is real -- six in ten U.S. consumers feel that voice verification is a secure form of identity verification for phone access to customer service data. Nuance’s commitment to assembling the technologies, products and services necessary to deliver that leadership to the marketplace is extremely compelling.”

According to the U.S. Federal Trade Commission, consumers reported fraud losses totaling more than $1.2 billion; the median monetary loss was $349. Javelin Strategy & Research identifies a recent and sharp increase of fraud observed in the phone channel. This means that while overall identity theft may be experiencing a modest decline, the voice channel is experiencing a resurgence of fraud activity. Beyond actual fraud losses, the potential damage to the reputation of a business where customer data is stolen can be much higher. So for businesses trying to manage the risks associated with security lapses, the costs are significant. A recent report by Contact Babel estimates that U.S. call centers spend almost $10 billion per year performing caller authentication.

Nuance has been carefully evaluating the general impact of caller authentication on customer care. “Today we announced research indicating that security remains a top concern for consumers,” said Lynda Kate Smith, vice president and general manager, Care Business Unit. “In addition to addressing consumer concerns, we are working with businesses to leverage voice security solutions to improve business efficiencies, as well as differentiate business offerings in the marketplace.”

“Spending on voice biometric-based caller authentication is poised to grow at 43% per year over the next five years and will exceed $620 million in 2012,” explained Dan Miller, senior analyst, Opus Research. “Financial institutions, communications carriers, healthcare, travel, transportation and government agencies, recognize its potential to offer secure customer care, especially as an increasing amount of commerce takes place over mobile phones.”

Nuance’s caller authentication solutions offer enterprises a significantly easier authentication procedure that drives down the need for costly Call Center agent-driven authentications. Callers will experience a shorter and more consistent authentication processes, as well as better protection for their personal data through the enhanced security. The solutions can capture and store a customer’s identifying biometric data, from their speech patterns alone; so the customer does not need to be physically present to securely authenticate his or her identity. Enterprises can use the technology to perform secure customer authentication for many business purposes including protecting financial transactions, limiting access to marquee personal data, complying with regulatory guidance, and managing risk in any situation where secure customer authentication is required.

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.

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