BURLINGTON, Mass., August 7, 2008 — Nuance Communications, Inc. (NASDAQ: NUAN), a leading supplier of speech solutions, is today announcing that its healthcare division has crossed the 70,000 license threshold with its Dragon Medical speech recognition solution. Dragon Medical is the only version of Nuance’s Dragon® software family designed exclusively for use by healthcare providers to create electronic medical records. With 70,000 users, Dragon Medical is used by more than 10 percent of all physicians in the U.S.

Utilizing specialized medical vocabularies and seamless integration into all electronic medical record (EMR) systems, Dragon Medical empowers physicians, nurses and other caregivers to use their voice to document highly detailed medical reports at up to 99 percent accuracy. Eliminating hours of typing, clicking and scrolling, Dragon Medical lets clinicians describe the narrative of the patient encounter through free-form dictation, quickly navigate patient charts using spoken commands, and reduce or eliminate the cost of transcription. By combining point-and-click EMR templates with clinician speech-recognized dictation, healthcare provider organizations can create more complete medical records that generate higher levels of reimbursement, while improving provider productivity and patient care.

“Dragon Medical is the most widely used medical speech recognition software in clinical settings. Its highly accurate medical dictation recognition and ease of use in electronic medical record environments maximize physician productivity,” said Robert Wise, President Healthcare division, Nuance. “While Dragon Medical is part of Nuance’s broad family of Dragon speech solutions, it is the only Dragon product uniquely designed with medical specific linguistic and acoustic research. Healthcare provider organizations can easily incorporate Dragon Medical into their clinical documentation process, with no IT integration needed, for high out-of-the-box accuracy and rapid physician utilization.”

Major EMR vendors are supporting Dragon Medical as an element of EMR deployments. Dragon Medical makes EMRs easier to use by reducing the number of mouse clicks and typing required by clinicians to document care. It drives all major EMR systems including, but not limited to those from Allscripts™, Epic, Misys®, GE® Healthcare, NextGen®, Siemens, eClinicalWorks, Meditech, McKesson®, Cerner and Eclipsys®.

Northtowns Orthopedics of New York provides one example of how Dragon Medical is used in a specialty setting to drive and improve clinical documentation through the use of highly accurate, medical-specific, speech recognition software. Joel Farwell, Practice Manager of Northtowns Orthopedics, shared the following.

“If you had asked me two years ago if our providers would ever consider utilizing a speech recognition solution for our orthopedic documentation, my response would have been a resounding no! However, after a pilot program within our organization demonstrated satisfactory results, the decision was made to implement Dragon Medical enterprise wide.

“The costs savings were immediate and significant,” continued Farwell. “The high level of recognition accuracy and quick turnaround time of reports made our providers more productive and improved the efficiency of the reimbursement team. Additionally, our patients are better served by a decrease in waiting times for authorization requests on surgery, diagnostic tests and other treatment modalities. We’ve improved our completion process for disability forms and due to faster report creation, we’ve improved communication with referring physicians,” Farwell added. “The adoption of Dragon Medical has allowed us to better utilize our EMR system, which in turn has afforded the gains of decreased postage, office supplies, stationary and other related items. While not done without effort, the rewards for those efforts are recognizable at all levels of the organization.”

From the smallest practice to the largest enterprise, Dragon Medical is the healthcare speech recognition software of choice to enhance EMR deployments in the private, public and government sectors. Among the growing list of 70,000 users, customers include:

Atrius Health
Fallon Clinic
Group Health Cooperative
Swedish Medical Center
U.S. Military Health System — Army, Navy, Air Force and Marine Corps.
University of Rochester Medical Center

Because medical terminology and phraseology differs greatly from everyday English, Dragon Medical includes vocabularies that are designed to support a range of medical specialties to ensure proper spelling, pronunciation and accuracy of clinical words. Dragon Medical has proven to be up to 33 percent more accurate than non-medical speech recognition software in clinical settings, reducing the need for documentation correction and thereby increasing clinician productivity and reimbursement. As an example, the medical term, “cerebral embolism,” would automatically be recognized by Dragon Medical, but has a higher likelihood of being incorrectly recognized by non-medical speech recognition software, which might convert “embolism” into “symbolism.” Dragon Medical minimizes medical report errors by recognizing medical terms accurately the first time.

Dragon Medical is the fastest, most complete way for physicians, nurses and other healthcare providers to create transcription-free clinical documentation in their own words. Dragon Medical 10 will be available in September 2008 and will introduce additional advanced, medical version-only features including enhanced medical formatting and improved EMR dictation and navigation capabilities. New customers purchasing Dragon Medical version 9.5 can order Dragon Medical 10 at no charge via a mail-in rebate coupon or as part of their standard Maintenance and Support Agreement. For more information, visit http://www.nuance.com/dictaphone/solutions/emr/ or call 1-888-350-4836.

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 Dragon are trademarks or registered trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other company names or product names may be the trademarks of their 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.