PEABODY, Mass., May 24, 2004 - ScanSoft, Inc. (Nasdaq: SSFT), the global leader of speech and imaging solutions, today announced that SoftMed Systems Inc., a leading provider of healthcare information management systems, has selected ScanSoft's Dragon NaturallySpeaking® 7 SDK to add the power of speech recognition to its full suite of document creation and distribution solutions, including its VoiceScript and ChartScriptMD products.

ScanSoft's Dragon NaturallySpeaking products are the world's best selling dictation solutions. This new integration will enable SoftMed's customers to quickly and painlessly create clinical reports by using their voice - diminishing the need for manual transcription and significantly reducing the costs and turnaround time of creating reports through medical transcription services. The integration of Dragon NaturallySpeaking 7 SDK provides physicians and healthcare providers with the most accurate documentation solution available - and enables them to spend less time on administrative tasks and focus on patient care.

The Dragon NaturallySpeaking 7 SDK has built-in understanding for more than 250,000 words, and includes additional vocabularies covering terms found in general medicine, pathology, radiology, cardiology and surgery disciplines. Healthcare organizations can also easily add their own words to the solution to create fully customized vocabularies. Care providers can take advantage of voice-activated shortcuts, allowing a single word or phrase to automatically populate fields within SoftMed's family of healthcare information systems solutions.

"An increasing number of our customers are realizing the many benefits of a speech-based solution," said Don Segal, president and CEO of SoftMed Systems. "ScanSoft's Dragon NaturallySpeaking has lived up to its reputation - from robust features to superb accuracy. The combination of our solutions will provide healthcare facilities with a natural, easy to use interface that delivers tangible time and cost savings."

ScanSoft's Dragon NaturallySpeaking 7 SDK provides healthcare technology suppliers and integrators with the ability to quickly and easily speech-enable commercial and in-house PC- and Web-based Healthcare Information Systems (HIS) and Electronic Medical Records (EMR) applications, and delivers unrivaled speed and accuracy. Dragon NaturallySpeaking technology can save healthcare organizations thousands of dollars per doctor each year in reduced or eliminated manual transcription costs. Tens of thousands of physicians world wide use ScanSoft's Dragon technology to achieve substantial time and money savings, thus enabling them to focus on patient care.

"Healthcare organizations are seeking solutions that increase productivity and help their professionals to get the most out of their existing solutions and processes, and most importantly, save money," said John Shagoury, President, ScanSoft Productivity Applications. "Using Dragon NaturallySpeaking, SoftMed is able to offer some of the best technology and services available to the industry, and help healthcare professionals reduce errors and improve the quality of care for patients."

About ScanSoft, Inc.

ScanSoft, Inc. (Nasdaq: SSFT) is the global leader 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 more information regarding ScanSoft products and technologies, please visit www.ScanSoft.com.

About SoftMed Systems, Inc.

SoftMed Systems, Inc. is the focused expert who continuously revolutionizes the Healthcare information systems (HIS) industry. SoftMed develops and delivers practical technologies that integrate engineering excellence, product integrity and complete scalability with speed of implementation and ease of use. Long-term customer relationships result in the realization of benefits including increased efficiency, productivity, expert workflow, and security. SoftMed's systems maximize healthcare providers' return in time, money and care.

Trademark reference: ScanSoft, Dragon NaturallySpeaking and the ScanSoft logo are registered trademarks or trademarks of ScanSoft, Inc. in the United States and other countries. All other company or product names mentioned 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 the Company's SEC filings. Actual results, event 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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