Lernout & Hauspie Finalizes Acquisition of Dragon Systems

Business Wire, June 7, 2000

About Lernout & Hauspie

Lernout & Hauspie (L&H) is a global leader in advanced speech and language solutions for vertical markets, computers, automobiles, telecommunications, embedded products, consumer goods and the Internet. The company is making the speech user interface (SUI) the keystone of simple, convenient interaction between humans and technology, and is using advanced translation technology to break down language barriers. The company provides a wide range of offerings, including: customized solutions for corporations; core speech technologies marketed to OEMs; end user and retail applications for continuous speech products in horizontal and vertical markets; and document creation, human and machine translation services, Internet translation offerings, and linguistic tools. L&H's products and services originate in four basic areas: automatic speech recognition (ASR), text-to-speech (TTS), digital speech and music compression (SMC) and text-to-text (translation). For more information, please visit Lernout & Hauspie on the World Wide Web at www.lhs.com or www.lhsl.com.

This Press Release contains forward-looking information, including but not limited to statements involving L&H's plans, expectations and objectives and the financial and other contributions expected from the acquisition of Dragon. Actual results may be materially different than those anticipated in these forward-looking statements. Factors that could cause actual results to materially differ include known and unknown risks, including uncertainty of new product development, the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated, early stage of development of the speech, language and medical information technology markets, the company's ability to predict accurately the demand for its products in these emerging markets and to develop strategies to address these markets successfully, the company's ability to manage its growth and changing business, the company's ability to successfully integrate the operations of Dictaphone and Dragon, the retention of key technical and other personnel, risks associated with the financial leverage, currency and other risks related to international operations, rapid technological change and intense competition, as well as other risks set forth in L&H's filings with the Securities and Exchange Commission. L&H cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. L&H expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the L&H's expectations or any change in events, conditions or circumstance on which any such statement is based.

All product names and trademarks mentioned herein are trademarks of L&H or their respective owners.