ScanSoft, Inc. (Nasdaq: SSFT), the global leader of speech and imaging solutions, and Microsoft Corp. (Nasdaq: MSFT) today announced an expanded worldwide agreement that authorizes Microsoft to deploy ScanSoft text-to-speech (TTS) technology in Microsoft� server application product lines, beginning with Microsoft Speech Server 2004. This global agreement covers the full portfolio of ScanSoft's industry-leading network text-to-speech offerings, access to ScanSoft's premier professional services organization and ScanSoft's Virtuoso (TM) custom voice program. The terms of the agreement were not disclosed.

"Microsoft and ScanSoft share a common vision for bringing speech technologies into the mainstream. The breadth and human-like quality of ScanSoft's TTS technology was a key factor in our decision to partner strategically with ScanSoft in this area," said Kai-Fu Lee, vice president for Microsoft Speech Technologies at Microsoft. "Usage of ScanSoft's technology and services will add significant value and a great user experience for our enterprise customers."

Microsoft has licensed ScanSoft TTS software as the flagship TTS solution for a range of Microsoft server applications, including Microsoft Speech Server 2004. The industry-leading TTS software accurately converts textual information such as account balances, store locations, stock quotes and billing addresses into natural-sounding speech, and is included in Microsoft Speech Server 2004 as part of the standard product offering, in addition to being licensed for Microsoft's inclusion in future offerings of other Microsoft servers.