ScanSoft Aquires LocusDialog

PEABODY, MA - ScanSoft Inc. (Nasdaq: SSFT) announced that it has acquired Montreal-based LocusDialog, a company focused on call routing and auto-attendant solutions with nearly 1,000 installations worldwide, handling approximately one-half billion calls annually. "ScanSoft is committed to offering the industry's premier speech applications," said Paul Ricci, chairman and CEO of ScanSoft. "The acquisition of LocusDialog, another milestone in our speech application strategy, will enhance our ability to better serve enterprise and carrier customers, strengthen distribution channels and optimize the value and unique capabilities of the SpeechWorks speech portfolio." The company expects the acquisition to be neutral to earnings in 2004. Richard Martel, previously CEO of LocusDialog, will lead ScanSoft's auto-attendant strategy within ScanSoft's Network Speech Solutions group. "Speech-activated auto-attendants can deliver compelling ROI to nearly every enterprise and telecommunications business worldwide," said Steve Chambers, senior vice president and general manager of Network Speech Solutions at ScanSoft. "Our expanded presence in the auto-attendant market demonstrates ScanSoft's focus on delivering packaged speech applications through our global network of partners. LocusDialog's premier applications and experienced team, under the direction of Richard Martel, represent strong additions to ScanSoft's application strategy and specifically our SpeechPAK initiatives."