Nuance Launches Japanese Subsidiary; Newly Formed Nuance Communications, K. K. Expands Support for Speech Recognition in Asia

Business Wire, Sept 11, 2001

Business Editors/High-Tech Writers

MENLO PARK, Calif. & TOKYO--(BUSINESS WIRE)--Sept. 11, 2001

Nuance (Nasdaq:NUAN), the leader in Voice Web software, today announced the formation of Nuance Communications, K.K., a wholly owned subsidiary based in Minato-Ward, Tokyo. The Japanese subsidiary begins full commercial marketing and service operations in Japan today and will be led by Hideki Wachi as president and representative director of the company.

"Our new subsidiary will help drive the adoption of speech recognition and the Voice Web in Japan," said Ron Croen, president and CEO of Nuance. "Our presence in Japan will eliminate the barriers of time and distance, enabling us to forge even stronger bonds between our company and our growing partner and customer base."

Demand for voice recognition systems in Japan has grown rapidly with the penetration of customer relationship management (CRM) systems. The Japanese companies now using Nuance software include securities houses Nomura and Tsubasa, which use Nuance to provide share price quotes; All Nippon Airways, which uses it for reservations; and CTC Create, which use it for applications such as sending and receiving documents. Nuance is also used in Voizi, a new voice portal service for which Japan Telecom initiated trial service on July 1, 2001. Voizi provides news, restaurant information, fortune-telling, and an array of other services, which users can access with voice alone. These systems are built by Nuance partners including Omron, TransCosmos and NTT Soft.

Nuance Products

Nuance speech recognition software understands a diverse range of voices regardless of sex, age, dialect and accent. It supports voice-driven applications over the telephone with unparalleled accuracy, and can automatically perform functions such as distinguishing different types of requests and processing orders. Users can perform telephone tasks such as asking for information and placing orders while speaking in a natural voice. Compared to the conventional method of pushing telephone buttons in response to voice prompts, this method reduces telephone time and makes using the telephone services easier and more convenient for users. Companies using Nuance software have reduced their telephone charges and personnel costs and streamlined their call center operations while at the same time expanding the services that they can offer over the telephone. In addition, Nuance has been a strong advocate of industry standards and was an early adopter of VoiceXML and VoIP to simplify and lower the cost of speech systems.

About Nuance Communications, K.K.

Nuance is the leader in Voice Web software -- speech recognition, voice authentication, text-to-speech and voice-browsing products that make the information and services of enterprises, telecommunications networks and the Internet accessible from any telephone. Every day, millions of people interact with Nuance systems at companies like Japan Telecom, OnStar, Qwest Wireless, Sears and UBS. Nuance is headquartered in Menlo Park, Calif.. Its Japanese subsidiary is based in Minato-Ward, Tokyo. For more information about Nuance, visit www.nuance.com.

Profile of Nuance Communications, K.K.
Established: April 6, 2001
Launch of operations: September 10, 2001
Headquarters: Minato Ward, Tokyo
CEO: Hideki Wachi ("President and representative director")
Business: Licensing and service for voice recognition systems
Dealers: Omron, Trans-Cosmos, NTT Soft
Web site: http://www.nuance.com

Biography of president and CEO Hideki Wachi
1961 Born in Hiroshima
1983 Graduated from Tokyo University with a degree in law, joined KDD
(now KDDI)
1994 Loaned to Intelsat in Washington, D.C. While there, earned an
M.S. degree from George Washington University
1997 Joined SAP Japan as general manager of planning and control
1998 Joined Deutsche Telekom K.K. as vice president and general
manager of the sales division
2000 Joined Intranets Co., Ltd., as president and CEO 2001 (August)
Joined Nuance Communications Co. as president and CEO

This press release contains forward-looking statements, including, for example, those relating to the anticipated success and rate of customer adoption of speech recognition technology in Japan. There is no assurance that the results contemplated by any forward-looking statements will be realized. The following factors, risks and uncertainties, among others, could cause actual results to differ materially from those described or implied in this press release's forward-looking statements: the risk that Japanese customers will not adopt Nuance technology; that the Voice Web is not adopted in Japan; and other factors described in Nuance's filings with the Securities and Exchange Commission, including but not limited to Nuance's last-filed prospectus and quarterly report on form 10-Q. Nuance does not undertake to update any oral or written forward-looking statements that may be made by or on behalf of Nuance.