Nuance’s eScription Platform Achieves Best in KLAS Distinction for Fifth Year in a Row

Nuance Communications, Inc. (NASDAQ: NUAN), a leading supplier of speech solutions, today announced that its eScription on-demand platform for computer aided medical transcription (CAMT) using background speech recognition, has received a 2008 Best in KLAS award. With this award, eScription is now one of only six other products to have achieved Best in KLAS five years in a row since 2004.

KLAS, a market research firm, published its latest findings in the 2008 Top 20 Best in KLAS Awards: Software & Professional Services report (December 15, 2008). The product rankings are derived from product evaluations and confidential interviews with healthcare information technology (HIT) customers, incorporating performance data collected over the past 13 months (October 15, 2007 - November 15, 2008).

With a score of 90.67, Nuance’s eScription software was ranked the highest in the speech recognition category, and exceeded its score from the previous year even as the platform’s usage has grown by nearly 40 percent in the past 12 months with both new and existing customers. In addition, the eScription score was 11.28 points above the HIT Software average for all products contributing to the 2008 report. Of the customers surveyed by KLAS, an impressive 99 percent said they would buy the eScription solution again.

Introduced eight years ago as an innovative solution to improve the clinical documentation process, the eScription platform continues to show significant market growth and consistent high levels of customer satisfaction. In December of 2004, when the eScription software first received Best in KLAS recognition, the platform was processing approximately 200 million lines of transcription per year for its customers. Today, Nuance’s eScription solution has exceeded a run rate of more than 1.5 billion lines per year, a more than seven fold increase over five years.

"Nuance’s commitment to product and customer service leadership has helped build customer satisfaction and the Best in KLAS recognition that comes with it. We are especially proud of the eScription Best in KLAS distinction and attribute our five-year leadership ranking to our quality product and committed team,” said John Shagoury, President, Nuance’s Healthcare division. "Increased productivity, reduced turnaround time, substantial transcription cost savings, and excellent customer service have all helped to earn this prestigious Best in KLAS recognition. We are committed to continued investment in the eScription platform, and the continued delivery of industry leading solutions and services that, in turn, bring significant, ongoing value to our healthcare customers.”

The eScription on-demand platform enables healthcare organizations to realize significant cost savings in medical transcription by increasing the productivity of medical transcriptionists (MTs). The platform enables clinicians to create documents in the most efficient way possible – by speaking into a phone, dictation device or electronic medical record (EMR), while background speech recognition technology creates a high quality first draft that MTs quickly review and edit, typically doubling productivity when compared to traditional transcription. The eScription offering is based on an ASP model, which requires little capital investment for healthcare providers, enabling them to realize a strong ROI within months.

KLAS rates products based on 40 performance criteria, including features, functionality, and customer interactions in areas such as sales, implementation, technical support, and executive involvement.

Nuance’s Healthcare Business

The eScription platform is a key solution within Nuance’s healthcare portfolio of proven, speech-enabled clinical documentation and communication solutions including the Dictaphone Enterprise Speech System on-premise platform for integrated transcription workflow and speech recognition, Dragon Medical for real-time speech recognition within an EMR, the SpeechMagic information capturing platform, and radiology solutions including PowerScribe for Radiology, RadWhere for Radiology, RadPort for Radiology, RadCube for Radiology, and Veriphy critical test results management. All of these solutions enable healthcare provider organizations to reduce operating costs, increase reimbursement, and enhance patient care and safety. No matter the specific requirements of a healthcare provider organization, Nuance has solutions to meet its needs.

About KLAS

KLAS is a research firm specializing in monitoring and reporting the performance of healthcare vendors. KLAS’ mission is to improve delivery, by independently measuring vendor performance for the benefit of our healthcare provider partners, consultants, investors, and vendors. Working together with executives from over 4500 hospitals and over 2500 clinics, KLAS delivers timely reports, trends, and statistics, which provide a solid overview of vendor performance in the industry. KLAS measures performance of software, professional services, and medical equipment vendors. For more information, go to www.KLASresearch.com, email marketing@KLASresearch.com, or call 1-800-920-4109 to speak with a KLAS representative.

© 2008 KLAS Enterprises, LLC. All rights reserved.

Nuance Communications, Inc.

Nuance (NASDAQ: NUAN) is a leading provider of speech and imaging solutions for businesses and consumers around the world. Its technologies, applications and services make the user experience more compelling by transforming the way people interact with information and how they create, share and use documents. Every day, millions of users and thousands of businesses experience Nuance’s proven applications and professional services. For more information, please visit www.nuance.com.

Nuance, the Nuance logo, PowerScribe, Dictaphone, Dragon, SpeechMagic, RadWhere, RadPort, RadCube, Veriphy and eScription are trademarks or registered trademarks of Nuance Communications, Inc. or its affiliates in the United States and/or other countries. All other company names or product names may be the trademarks of their respective owners.

The statements in this press release, relating to future plans or future events or services, are forward-looking statements which are subject to specific risks and uncertainties. These could involve particular market trends, competition factors and other risks described in the documents submitted to the US Securities and Exchange Commission. The actual results, events and services may vary significantly from the forecasts. The reader is warned not to rely on these forward-looking statements without reservation, since these are simply reflections of the current situation.