BURLINGTON, Mass. May 5, 2008 – Nuance Communications, Inc. (NASDAQ: NUAN), a leading supplier of speech solutions, today announced that its Dictaphone Healthcare division’s Dragon NaturallySpeaking® Medical software has achieved 100 percent growth in adoption within the U.S. Military Health System over the past year. Dragon Medical is currently used by more than 6,000 U.S. clinicians from healthcare treatment facilities representing all branches of the military, including the Army, Navy, Air Force and Marine Corps.

Dragon Medical has extended its value into the Federal government through its seamless integration with AHLTA, the military’s electronic health record, to enable clinical documentation through accurate voice-to-text speech recognition. According to a survey performed across 17 distinct Army, Navy, Air Force and Marine Corps medical treatment facilities, 79.9 percent of those surveyed chose Dragon Medical as their preferred method for documenting care within AHLTA.

“Without speech recognition, many of us using AHLTA would spend hours more each week manually typing and mouse clicking various boxes in order to document care. By making Dragon Medical accessible, we have enabled our physicians to complete their documentation in a much more efficient manner with the added benefit of producing a much more narrative note,” said Robert Bell Walker, MD, European Regional Medical Command AHLTA Consultant. “Dragon’s high accuracy rate and powerful macro functions make it even more efficient than traditional outsourced dictation. I’m convinced with wide adoption of voice recognition Dragon Medical can be a medical force multiplier.”

In January 2004, President Bush set a goal for all Americans to have an electronic health record by 2014. The Department of Defense has responded with a nationwide effort to implement AHLTA, the interoperable, globally accessible, protected and always available electronic health record for active military, retirees and their families, by 2011.

“Speech recognition technology allows for more thorough and expedited documentation of our patient encounters. Since using Dragon Medical I find that medical statements are more easily captured during routine clinic workflow. The comprehensive medical vocabulary Dragon Medical works off of ensures that the symptoms or diagnosis we say are correctly documented,” said Craig Rohan, Staff Pediatrician at the Peterson Air Force base in Colorado. “More advanced users of Dragon Medical can take advantage of features such as “macros”, “shortcuts” and other tools that further streamline documentation by producing a partially, or in some cases fully populated medical record when prompted by the command ‘normal study,’ for example. We’ve seen significant productivity improvements across those who have embraced speech recognition to document care.”

Dragon Medical has gained outstanding support to become the standard solution to improve AHLTA’s ease of use, and the Military Health System has recognized the software as a complementary technology to enable wide-scale deployment of AHLTA across all military treatment facilities. Dragon Medical has been invaluable for military healthcare organizations, allowing them to roll out AHLTA with minimal disruption to provider productivity.

Dragon Medical is the most widely used and successful general-purpose speech recognition solution in the history of the healthcare industry. Dictaphone recently announced that more than 60,000 clinicians use Dragon Medical to improve their patient documentation process. Accuracy of the software is currently 98 percent or better “out of the box” and rising due to advances made by Nuance’s 500 in-house speech scientists.

Healthcare Solutions Division

Healthcare Solutions is a division of Nuance Communications, a leading provider of speech and imaging solutions. Dictaphone provides the most comprehensive family of speech-driven clinical documentation and communications solutions. Nuance’s Dictaphone® software solutions orchestrate and optimize clinical workflow, reduce transcription expense, raise standards of care via more thorough documentation, deliver results rapidly to meet patient safety guidelines, and heighten clinician satisfaction by making EMR systems easy to use. Dictaphone’s solutions accelerate the adoption of clinical information systems, so provider organizations can maximize the return from their IT investments. For more information, please visit www.nuance.com/dictaphone/.

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, NaturallySpeaking, and Dictaphone are trademarks or registered trademarks of Nuance Communications 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.