LERNOUT & HAUSPIE SPEECH AND LANGUAGE PRODUCTS TO SUPPORT INTEL® PENTIUM® III PROCESSOR

Pentium III Processor Enhances Experience for Users of L&H Speech and Language Applications

BURLINGTON, MASS. – Feb. 17, 1999 – Lernout & Hauspie (NASDAQ: LHSPF; EASDAQ: LHSP) (L&H™), a worldwide market leader in speech and linguistic technologies, products and services, today announced that its speech and language applications and software will fully support Intel’s Pentium III processor. Working closely with Intel Corporation, L&H expects to deliver products with additional benefits such as improved response time, better performance, and increased ease of use features. L&H will demonstrate this support at Intel’s Pentium III Processor Preview Day on February 17, 1999, at the San Jose Convention Center in San Jose, California.

"L&H technologies have always been on the cutting edge in their support of platforms, such as the Pentium III processor, that provide increased performance and functionality," said Gaston Bastiaens, president and CEO of L&H. "We are delighted to continue our work with Intel to help enhance speech and language technologies, making them more accessible and attractive to a wider group of users."

L&H expects that a number of its offerings will derive additional benefits from support of the Pentium III processor. The new processor should deliver increased speed and faster response time for users of L&H’s machine translation software ¾ employed in its L&H iTranslator™ multilingual search, summarization and translation software and in its L&H Power Translator® desktop language translation software. These products automatically translate text in documents, e-mail, Web pages and more. The company’s automatic speech recognition (ASR) engines, particularly large vocabulary ASR engines, are expected to exploit the new instructions in Pentium III processor for faster performance.

L&H plans to introduce a version of its L&H Voice Xpress™ software optimized for the Pentium III processor in the first half of 1999. The new software is expected to exploit Pentium III processor’s new instruction and its faster processing speed to increase performance, functionality and ease of use for end-users. The company also intends to support the Pentium III processor with the recently announced SP2, a continuous speech recognition product for the Cantonese language, to provide added functionality for end users. Future versions of this product, as well as a planned support of the traditional Chinese language, are expected to leverage the new Pentium III processor instructions.

"L&H’s speech and language technology expertise has helped drive the acceptance and advancement of speech across a broad range of areas, including speech recognition, translation, and core technologies," said Rob Sullivan, Director of New Technologies and Businesses, Intel Corporation. "We believe our development of high performance processors, such as the Pentium III processor, help support the strides L&H has made in the speech field."

About L&H

Lernout & Hauspie Speech Products (L&H) is a global leader in advanced speech and language solutions for computers, automobiles, telecommunications, embedded products, consumer goods and the Internet. The company is making the speech user interface (SUI) the keystone of simple, convenient interaction between humans and technology, and is using advanced translation technology to break down cultural barriers. L&H’s products and services originate in four basic areas: automatic speech recognition (ASR), text-to-speech (TTS), digital speech and music compression (SMC) and text-to-text (translation). For more information, please visit Lernout & Hauspie Web site at www.lhs.com.

This news release contains forward-looking statements. Such forward-looking statements, include, without limitation, that the products’ features will perform as stated herein and that L&H will be successful in using the Intel Pentium III processor in its existing and upcoming products, that such products will be successful in the market, that upcoming products will be introduced on schedule, if at all, and that L&H and Intel will remain a stable working relationship. Readers are cautioned that such forward-looking statements are subject to material and adverse change and involve risks and uncertainties, including, without limitation, risks associated with rapid technological change, product development and introduction and competition. The statements contained herein speak only as of the date of this release. L&H expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in L&H’s expectations or any change in events, conditions or circumstances on which any such statement is based.

All product names and trademarks mentioned herein are trademarks of Intel, L&H or their respective owners.

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