Investec Announces Investment Opinion

Business Wire, June 25, 2002

Business Editors

NOTE TO EDITORS: The following is an investment opinion issued

by Investec

Investec Initiates Coverage of ScanSoft With Buy Rating

Solid Digital Imaging and Rapidly Growing Speech Software Business

Combine for Strong Profitable Growth

Jeff Van Rhee, Enterprise Software Analyst at Investec Inc., has initiated coverage of ScanSoft, Inc. (Nasdaq: SSFT; $7.25) with a Buy recommendation and a 12-month price target of $9.50.

"We believe aggressive investors who are looking for a profitable, rapidly growing software company that exceeds estimates in a very difficult market, should definitely consider the purchase of SSFT shares," Van Rhee said. "ScanSoft is the market share leader in the Optical Character Recognition (OCR) and Text to Speech (TTS) markets with its Digital Imaging and Speech products. Furthermore, recent embedded Automated Speech Recognition (ASR) wins in the automotive space are the leading edge of what we believe is a very large opportunity for ScanSoft."

"ScanSoft has solid relationships and revenue visibility with the leaders in digital imaging hardware and software that make its digital imaging business defendable and more predictable," noted Van Rhee. "We believe the company has a very good opportunity to leverage their speech technologies into a profitable, sustainable business, while other speech technology companies have been unable to do so."

Investec Inc. makes a market in the shares of SSFT.

Editor's note: Interviews are available upon request.

About Investec Group

The Investec Group (JSE Securities Exchange: INT) is an international specialist-banking group which provides a wide range of specialized products and services to a select client base in 15 countries worldwide. The Group is organized in four principal businesses: investment banking, treasury and finance activities, private client activities and asset management.

Investec Group employs over 5,000 individuals worldwide. It is one of the Top 25 largest companies listed on the Johannesburg Stock Exchange and ranks among the world's top 350 banks with total assets under management exceeding $70 billion.

About Investec Inc.

Investec Inc. is the United States investment banking arm of Investec Group. The firm is a full service, research-oriented investment bank focusing on companies in the technology, healthcare, and consumer products industries.

Investec provides a full range of investment banking services, including public and private equity financings, private placements, mergers and acquisitions, and financial advisory services. Clients also benefit from its wealth management and asset management services.

This communication is neither an offer to sell nor a solicitation of an offer to buy any securities mentioned herein. The information contained herein has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. Investec Inc. and/or its affiliates may have a position in the securities described herein. Available information supporting this recommendation will be furnished upon request. Investec Inc. and/or its affiliates usually make a market in this stock. Investec Inc. and/or its affiliates will sell this stock to or buy it from customers on a principal basis. This report is not directed to, nor intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Investec Inc. or its affiliates to any registration or licensing requirement within such jurisdiction.