Voice Recognition Breaking News

LERNOUT & HAUSPIE SPEECH PRODUCTS ANNOUNCES CONTINUED BUNDLING AGREEMENT WITH COREL CORPORATION

Award-winning software integrated into Corel® WordPerfect ® Office 2002

BURLINGTON, Mass. October 3, 2001 -- Lernout & Hauspie Speech Products NV (OTC: LHSPQ) ('L&H' or the Company) a world leader in speech and language technology, products and services today announced that L&H's leading speech recognition product, Dragon NaturallySpeaking® 5.0, is being bundled into Corel® WordPerfect® Office 2002 Professional Edition. This relationship is designed to bring speech recognition capabilities to millions of Corel® WordPerfect® word processing users worldwide.

With this agreement, a copy of Dragon NaturallySpeaking® v. 5.0, the advanced document creation solution, is fully incorporated into the preferred word processor Corel® WordPerfect® Office 2002 Professional Edition. With this combination, users are able to create, edit, and format documents simply by speaking into their personal computers instead of typing, increasing productivity and preventing repetitive strain injuries.

"With the integration of Dragon NaturallySpeaking 5.0 into Corel WordPerfect Office applications, millions of people are now able to quickly and affordably obtain the benefits of speech recognition software," said John Shagoury, president Speech and Language Technologies, Lernout & Hauspie. "The easy-to-use software enables users to increase productivity while simultaneously helping prevent repetitive strain injuries."

This announcement is a continuation of a 1998 agreement between Corel and Lernout & Hauspie to integrate Dragon NaturallySpeaking® into the Corel® WordPerfect® line. Under the terms of the agreement, Dragon NaturallySpeaking® software was integrated into earlier versions of Corel products, including several editions of Corel® WordPerfect® Office 2000.

"Corel is consistently working to provide value and productivity gains to its users," said Graham Brown, executive vice president of business applications for Corel Corporation. "In accordance with Section 508 of the Rehabilitation Act (29 U.S.C. 794d), government agencies are required to provide software and services that make computers and technology more accessible for employees and users with disabilities. Bundling WordPerfect Office with Dragon NaturallySpeaking is one way to meet the government requirement and service the customers in need of it."

About Lernout & Hauspie Speech Products

L&H is a global leader in advanced speech and language solutions. L&H 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. L&H provides a wide range of offerings, including customized solutions for corporations; core speech technologies marketed to OEMs; end user applications for continuous speech products; and document creation, and linguistic tools. L&H's products and services originate in the following basic areas: automatic speech recognition (ASR), text-to-speech (TTS), and digital speech and music compression (SMC). For more information, please visit Lernout & Hauspie on the World Wide Web at www.lhsl.com.

About Corel Corporation

Corel Corporation provides its customers with the creative tools they need to unleash their imaginations. With its heritage of software innovation and a solid franchise of loyal customers worldwide, Corel has earned its reputation as an internationally recognized developer of award-winning graphics and business productivity applications on the Windows®, Macintosh®, Linux® and UNIX® platforms. In 2001, Corel will continue to expand its support of the Web, delivering the Internet's versatility to customers through exciting Web-based applications, content and services. Corel will also be developing applications for Microsoft's .NET platform as part of its commitment to provide customers with a full range of applications and services over the Internet. With its headquarters in Ottawa, Canada, Corel continues to be one of Silicon Valley North's most exciting and influential software companies. Corel's common stock trades on the NASDAQ Stock Market under the symbol CORL and on the Toronto Stock Exchange under the symbol COR. For more information on Corel Corporation, please visit www.corel.com.