ScanSoft Announces $5 Million Investment from Largest Institutional Shareholder

State of Wisconsin Investment Board Increases Holdings



Apr 27, 2001, 01:00 ET from ScanSoft, Inc.

    PEABODY, Mass., April 27 /PRNewswire/ -- ScanSoft, Inc. (Nasdaq:   SSFT), a
 leading provider of paper-to-digital solutions for desktop, network and
 corporate workgroups, today announced that its largest institutional
 shareholder, the State of Wisconsin Investment Board (SWIB), has invested $5
 million in the company in exchange for common stock.
     SWIB purchased an additional 4.76 million shares of ScanSoft common stock.
 As of December 31, 2000, SWIB owned 3.87 million shares, or approximately 8.4
 percent of ScanSoft's outstanding common stock.
     "We are delighted to announce this important reaffirmation of our
 relationship with the State of Wisconsin Investment Board," said Paul Ricci,
 chairman and CEO of ScanSoft.  "SWIB ranks as one of the nation's premier
 public employee pension funds and asset managers.  They play a leadership role
 in the investment community, particularly on such critical issues as corporate
 governance.  Their commitment of $5 million of new equity in ScanSoft
 represents an important validation of our strategy and bright future."
     This share purchase was completed as a private placement transaction,
 under an exemption from registration provided by Section 4(2) of the
 Securities Act of 1933, as amended (the Securities Act), and Rule 506 under
 the Securities Act.  ScanSoft has agreed to effect registration of the subject
 shares within 90 days of the purchase date.  Proceeds from the transaction are
 to be used for working capital and other general corporate purposes.  Other
 terms of the transaction were not disclosed.
 
     About the State of Wisconsin Investment Board
     The State of Wisconsin Investment Board (SWIB) is a state agency that
 invests the assets of the Wisconsin Retirement System (WRS), the State
 Investment Fund, and several smaller trust funds established by the state. As
 of December 31, 2000, assets under management totaled $67.0 billion.
 
     About ScanSoft, Inc.
     Headquartered in Peabody, Mass., with European headquarters in The
 Netherlands, ScanSoft, Inc. (Nasdaq:   SSFT) is a global leader in paper-to-
 digital solutions for the desktop, network, Internet and mobile environments
 that enable users to leverage the power of their scanners, digital cameras and
 other electronic devices.  ScanSoft's award-winning product line - OmniPage
 Pro, TextBridge Pro, PaperPort Deluxe, Pagis Pro, OmniForm, eOmniForm, and
 numerous software developer's kits, enables users to capture, recognize, edit,
 manage and share documents and photos electronically by taking advantage of
 ScanSoft's cutting-edge technology.
     ScanSoft has established numerous strategic partnerships with the
 industry's leading scanner and multifunction vendors to deliver the most
 comprehensive and cost-effective solutions for its customers.  Vendors who
 have chosen ScanSoft's cutting-edge products and technologies include Brother,
 Canon, Epson, Fujitsu, Hewlett-Packard, IBM/Lotus, Mustek, Primax, Sharp,
 Symantec Corporation, Visioneer, Xerox and others.  ScanSoft's leading
 technologies have been licensed by Microsoft for use in Office XP and other
 future products.  ScanSoft continues to cultivate and develop strategic
 partnerships to deliver the most comprehensive and cost-effective solutions
 for its customers.
     ScanSoft software is sold, marketed and supported worldwide through
 retail, dealer and OEM channels and the Internet, capturing the small to
 medium size business and corporate markets.  There are more than 8 million
 registered users of ScanSoft products.  ScanSoft can be found on the Web at
 www.scansoft.com.
 
     Trademark reference: ScanSoft, OmniPage, TextBridge, PaperPort, PaperPort
 Deluxe, Pagis, OmniForm, eOmniForm, and Developer's Kit 2000 are registered
 trademarks or trademarks of ScanSoft, Inc., in the United States and/or other
 countries. All other trademarks and trade names are hereby recognized and may
 be registered to their respective holders.
 
     Safe Harbor Statement
     Except for the historical information contained herein, this press release
 includes forward-looking statements within the meaning of Section 21(e) of the
 Securities Exchange Act of 1934. These forward-looking statements are subject
 to risks and uncertainties and there can be no assurance that any of these
 forward-looking statements may prove to be correct and actual results may
 differ materially. These risks and uncertainties include, but are not limited
 to, our ability to effectively manage diverse and geographically dispersed
 operations, difficulties with integrating product plans, schedules and
 resources, difficulties in implementing the planned cost reductions, potential
 that the information and estimates used to predict the cost savings were not
 accurate, market acceptance of ScanSoft's products, competitive products,
 pricing pressures, maintenance of distribution channels, and other risks
 detailed from time to time in ScanSoft's SEC reports. ScanSoft disclaims any
 intent or obligation to update these forward-looking statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65262562
 
 

SOURCE ScanSoft, Inc.
    PEABODY, Mass., April 27 /PRNewswire/ -- ScanSoft, Inc. (Nasdaq:   SSFT), a
 leading provider of paper-to-digital solutions for desktop, network and
 corporate workgroups, today announced that its largest institutional
 shareholder, the State of Wisconsin Investment Board (SWIB), has invested $5
 million in the company in exchange for common stock.
     SWIB purchased an additional 4.76 million shares of ScanSoft common stock.
 As of December 31, 2000, SWIB owned 3.87 million shares, or approximately 8.4
 percent of ScanSoft's outstanding common stock.
     "We are delighted to announce this important reaffirmation of our
 relationship with the State of Wisconsin Investment Board," said Paul Ricci,
 chairman and CEO of ScanSoft.  "SWIB ranks as one of the nation's premier
 public employee pension funds and asset managers.  They play a leadership role
 in the investment community, particularly on such critical issues as corporate
 governance.  Their commitment of $5 million of new equity in ScanSoft
 represents an important validation of our strategy and bright future."
     This share purchase was completed as a private placement transaction,
 under an exemption from registration provided by Section 4(2) of the
 Securities Act of 1933, as amended (the Securities Act), and Rule 506 under
 the Securities Act.  ScanSoft has agreed to effect registration of the subject
 shares within 90 days of the purchase date.  Proceeds from the transaction are
 to be used for working capital and other general corporate purposes.  Other
 terms of the transaction were not disclosed.
 
     About the State of Wisconsin Investment Board
     The State of Wisconsin Investment Board (SWIB) is a state agency that
 invests the assets of the Wisconsin Retirement System (WRS), the State
 Investment Fund, and several smaller trust funds established by the state. As
 of December 31, 2000, assets under management totaled $67.0 billion.
 
     About ScanSoft, Inc.
     Headquartered in Peabody, Mass., with European headquarters in The
 Netherlands, ScanSoft, Inc. (Nasdaq:   SSFT) is a global leader in paper-to-
 digital solutions for the desktop, network, Internet and mobile environments
 that enable users to leverage the power of their scanners, digital cameras and
 other electronic devices.  ScanSoft's award-winning product line - OmniPage
 Pro, TextBridge Pro, PaperPort Deluxe, Pagis Pro, OmniForm, eOmniForm, and
 numerous software developer's kits, enables users to capture, recognize, edit,
 manage and share documents and photos electronically by taking advantage of
 ScanSoft's cutting-edge technology.
     ScanSoft has established numerous strategic partnerships with the
 industry's leading scanner and multifunction vendors to deliver the most
 comprehensive and cost-effective solutions for its customers.  Vendors who
 have chosen ScanSoft's cutting-edge products and technologies include Brother,
 Canon, Epson, Fujitsu, Hewlett-Packard, IBM/Lotus, Mustek, Primax, Sharp,
 Symantec Corporation, Visioneer, Xerox and others.  ScanSoft's leading
 technologies have been licensed by Microsoft for use in Office XP and other
 future products.  ScanSoft continues to cultivate and develop strategic
 partnerships to deliver the most comprehensive and cost-effective solutions
 for its customers.
     ScanSoft software is sold, marketed and supported worldwide through
 retail, dealer and OEM channels and the Internet, capturing the small to
 medium size business and corporate markets.  There are more than 8 million
 registered users of ScanSoft products.  ScanSoft can be found on the Web at
 www.scansoft.com.
 
     Trademark reference: ScanSoft, OmniPage, TextBridge, PaperPort, PaperPort
 Deluxe, Pagis, OmniForm, eOmniForm, and Developer's Kit 2000 are registered
 trademarks or trademarks of ScanSoft, Inc., in the United States and/or other
 countries. All other trademarks and trade names are hereby recognized and may
 be registered to their respective holders.
 
     Safe Harbor Statement
     Except for the historical information contained herein, this press release
 includes forward-looking statements within the meaning of Section 21(e) of the
 Securities Exchange Act of 1934. These forward-looking statements are subject
 to risks and uncertainties and there can be no assurance that any of these
 forward-looking statements may prove to be correct and actual results may
 differ materially. These risks and uncertainties include, but are not limited
 to, our ability to effectively manage diverse and geographically dispersed
 operations, difficulties with integrating product plans, schedules and
 resources, difficulties in implementing the planned cost reductions, potential
 that the information and estimates used to predict the cost savings were not
 accurate, market acceptance of ScanSoft's products, competitive products,
 pricing pressures, maintenance of distribution channels, and other risks
 detailed from time to time in ScanSoft's SEC reports. ScanSoft disclaims any
 intent or obligation to update these forward-looking statements.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X65262562
 
 SOURCE  ScanSoft, Inc.