LISBON, Portugal and GENT, Belgium, December 18, 2002 - ScanSoft, Inc. (Nasdaq: SSFT), a leading supplier of imaging, speech and language solutions, today announced that INOV, a leading electronics, communications and IT organization in Portugal, has signed an agreement to incorporate ScanSoft® RealSpeak™ text-to-speech (TTS) solution in its In-IVR™ voice portal platform.

INOV's platform is used a wide variety of speech-enabled applications, including call centers, automated directory assistance, unified messaging systems and services for persons with special needs, such as the elderly and persons with disabilities. INOV's In-IVR platforms currently support products and services from companies such as Portugal Telecom, Portugal's largest fixed and mobile operator. With more than 1,000 installed voice channels that serve more than 400,000 calls a day, INOV's platforms are designed to be a reliable, cost-effective way to achieve customer satisfaction using state-of-the art technology.

ScanSoft RealSpeak is the most widely used product for converting text into natural-sounding, synthesized speech. The product is used for a wide range of applications, including reading emails for unified messaging systems, providing prompts for interactive voice response applications, and speech-enabling mobile, automotive, game and PC/multimedia applications.

"The speech market offers many new possibilities, and INOV is certain that the natural voice quality of ScanSoft's RealSpeak will add extra impetus to the acceptance of this technology. The benefits of RealSpeak in speech-enabled applications will bring gains in communication, productivity and overall customer satisfaction," said Fernando Moreira, president of the board of INOV.

ScanSoft RealSpeak supports a range of operating systems, including Microsoft Windows, Windows CE and Windows CE for Automotive, as well as Intel-based Linux systems. It is available in up to 19 languages, depending upon platform, including U.S. and U.K. English, German, French, Dutch and Belgian Dutch, Castilian and Mexican Spanish, Italian, European and Brazilian Portuguese, Norwegian, Polish, Swedish, Danish, Cantonese and Mandarin Chinese, Korean and Japanese.

"The selection of ScanSoft RealSpeak by INOV is a strong endorsement of the quality and leadership of our broad language capabilities, including Portuguese," said Peter Hauser, senior vice president and general manager international at ScanSoft. "We are pleased to have gained such a strong messenger in Portugal, and believe that INOV will expand our presence in this growing market."

About INOV

INOV - Inesc Inovação is the largest technological infrastructure in Portugal in the areas of information technologies, electronics and communications. As technological partner, INOV helps companies in their search for new business opportunities through the development of innovative technological solutions with a high added value, crucial to the creation of perceived advantages that pave the way to high degrees of competitiveness.

With more than a decade of experience (within the INESC Group), INOV has developed solutions for: the Portuguese Government, European Space Agency, Siemens, NEC, Motorola, Philips, MAN, GMV, Portugal Telecom, Vodafone, Optimus, ONI, etc. For more information regarding INOV systems and technologies, please visit www.inov.pt

About ScanSoft

ScanSoft, Inc. (Nasdaq: SSFT) is a leading supplier of imaging, speech and language solutions that are used to automate a wide range of manual processes - saving time, increasing worker productivity and improving customer service. For more information regarding ScanSoft products and technologies, please visit www.ScanSoft.com.

Trademark reference: ScanSoft and RealSpeak are registered trademarks or trademarks of ScanSoft Inc. in the United States and other countries. INOV and In-IVR are registered trademarks or trademarks of Inesc Inovação in Portugal and other countries. All other company names or product names referenced herein may be the trademarks of their respective owners.

The statements in this press release that relate to future plans, events or performances 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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