Voice Recognition Breaking News

L&H RELEASES DRAGON NATURALLYSPEAKING VERSION 5

New Version of L&H Dragon NaturallySpeaking Improves Support for E-mail, Internet and Additional Office Applications; Provides Even Greater Accuracy, and Ease of Use

BURLINGTON, MASS. & IEPER, BELGIUM - August 14, 2000 Lernout & Hauspie (NASDAQ: LHSP, EASDAQ: LHSP) (L&H) today announced the release of L&H™ Dragon NaturallySpeaking® version 5, the newest offering in the full family of L&H™ continuous speech recognition products. The new version offers increased accuracy and enhancements such as improved support for e-mail and Internet browsing. These features and others, based on extensive customer feedback, make L&H Dragon NaturallySpeaking version 5 more intuitive and even easier to use.

"By making the product easier to use, expanding the applications that the software supports and increasing its accuracy rates, we've created a product that delivers the benefits of speech to a broader range of users than ever before," said Bill DeStefanis, senior director of product management, L&H™ Applications Division. "The L&H Dragon NaturallySpeaking version 5 family, like its predecessors, provide a wide range of features to support a wide variety of users' needs."

Product Family Features and Benefits
L&H Dragon NaturallySpeaking version 5 includes new and improved features to make it both easier to use and more accurate. Version 5 adds an extensive set of new voice commands to browse the Web and manage email navigation by voice. Popular programs such as Microsoftā Outlook® and Outlook® Express, Qualcommā Eudora®, Netscapeā Messenger and AOL® can all be controlled with your voice. New commands such as "Check for New Mail," "Send Email," and "Reply to message" are supported.

In addition, Version 5 now makes it easier than ever to learn dictation with a new interactive tutorial based on the principles of how adults learn. This tutorial "walks" users through the program, teaching basic dictation techniques. While using the tutorial, customers can experiment and test features as they familiarize themselves with dictation and L&H Dragon NaturallySpeaking.

Many of the new features in version 5 are designed to help computer users discover the productivity benefits of using speech with their Microsoft® Windows® based applications. For example, the new "Quick Correct" feature speeds proofreading and correction. A new Quick Start guide provides step-by-step instructions, quickly moving users from installation to their first dictation. Finally, the "Add Words from Document" feature improves accuracy by quickly adding new words to the L&H Dragon NaturallySpeaking vocabulary from existing documents. This feature improves accuracy and customizes Dragon NaturallySpeaking version 5 to each individual user.

All L&H Dragon NaturallySpeaking version 5 products should require as little as five minutes of voice training and allow users to dictate and use voice commands in virtually any Microsoft® Windows®-compatible application. Voice commands are readily available with helpful on-screen and off screen reminders. The Preferred edition of L&H Dragon NaturallySpeaking version 5 also offers dictation shortcuts, allowing users to insert multiple lines of text with only a few words. The Preferred edition also features expanded support for Mobile recorders, including Sony® (ADR: SNE), Olympus®, and VoiceIt® brand recorder. For a complete list of approved recorders, please view our compatibility list at http://www.dragonsys.com/support/.

L&H Dragon NaturallySpeaking version 5 family of retail products includes L&H Dragon NaturallySpeaking Essentials, L&H Dragon NaturallySpeaking Standard, L&H Dragon NaturallySpeaking Preferred and L&H Dragon NaturallySpeaking Preferred USB. These new additions to the L&H family of products build upon the already outstanding accuracy levels available in L&H Dragon NaturallySpeaking version 4.

Pricing, System Requirements and Availability
L&H Dragon NaturallySpeaking version 5 supports Windows® 98, 2000, Millennium, or Windows NT® 4.0 (with SP-6 or greater) operating systems. Version 5 requires a 266 MHz processor or equivalent; at least 64 MB RAM is required. A minimum of 150 MB free disk space is needed for installation. A Dragon Systems® certified sound card, CD-ROM and speakers are also required. (Visit our Web site at www.lhsl.com or www.dragonsys.com for the latest hardware compatibility list.)

L&H Dragon NaturallySpeaking has been optimized for a variety of popular processors, including the Intel® Pentium® III, Intel® Pentium® II, Intel® Pentium® with MMX™, Intel® Celeron™, AMD K6®-2, AMD K6®-III with 3DNow!™, AMD Athlon™, and more.

The estimated prices of version 5 for L&H Dragon NaturallySpeaking Essentials, L&H Dragon NaturallySpeaking Standard, L&H Dragon NaturallySpeaking Preferred and L&H Dragon NaturallySpeaking Preferred USB are $59.00, $109.00, $199.00 and $249.00, respectively. The products are expected to be available in the coming weeks in over 3,500 retail outlets across the US and Canada. Each product includes software on a CD-ROM, documentation, and a noise-canceling microphone (USB version includes a USB microphone for optimal use with laptop computers).

About Lernout & Hauspie Lernout & Hauspie (L&H) is a global leader in advanced speech and language solutions for vertical markets, 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 language barriers. The company provides a wide range of offerings, including: customized solutions for corporations; core speech technologies marketed to OEMs; end user and retail applications for continuous speech products in horizontal and vertical markets; and document creation, human and machine translation services, Internet translation offerings, and linguistic tools. 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 on the World Wide Web at WWW.LHS.COM or WWW.LHSL.COM.

This press release contains forward-looking information. Such statements include, without limitation, statements involving L&H's plans, objectives, expectations and intentions. There can be no assurance that actual results will not be materially different from those anticipated in these forward-looking statements. Readers are cautioned that such forward- looking statements involve risk and uncertainties, including, without limitation, the risk that L&H or one or more of the company's licensees will not successfully complete the development of these products on a timely basis, if at all; that the technologies will not perform as anticipated, and the general risks associated with the intense competition and rapid technological change characteristic of the speech technology market. The forward-looking statements are also subject to risks set forth in L&H's reports filed with the Securities and Exchange Commission.

The forward-looking statements contained herein speak only as of the date of this Report. 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.