BURLINGTON, MA, October 14, 2008 — Nuance Communications, Inc. (NASDAQ: NUAN), a leading supplier of speech solutions, is today announcing that its eScription on-demand platform for computer aided medical transcription (CAMT) using background speech recognition, continues to show significant market growth and consistent high levels of customer satisfaction. As a result of its market adoption, eScription CAMT is processing more than 1.4 billion lines of medical transcription per year, up 40 percent in volume from one year ago. The market success of Nuance’s eScription platform is further demonstrated by the following:

17 healthcare organizations have begun using the eScription platform since January 2008, adding an estimated 284 million lines to the platform’s run rate.
New customers, which are part of large multi-facility systems, include Kaiser Permanente Northwest (Portland, OR), Memorial Hermann Hospital System (Houston, TX), and Legacy Health Systems (Portland, OR).
In April 2008, 10 new CAMT customers joined the 23-member Million Dollar Club, whose members alone have documented more than $49 million in transcription cost savings.
eScription CAMT software has received a Best in KLAS award, ranking #1 in the category of Transcription and Back-end Speech Recognition for four consecutive years. In addition, eScription compared its overall 2007 score of 90.26 to all software products in the Top 20 Report. Out of all General Market software products eligible to receive a Best in KLAS award, eScription was the highest scoring category leader to also earn the KLAS maximum confidence level.
High Customer Satisfaction – Nine years of operation without ever losing a customer.
eScription trainers delivered more than 100 classes for MTs and administrators since January 2008 via the web, at eScription University and at 21 customer sites in 11 states.
The eScription business unit of Nuance has expanded its staff by 23 percent to support the platform’s growing user base.

“Healthcare organizations cannot overlook the importance of efficiently created, high quality clinical documentation for driving excellence in patient care and financial success,” stated Dr. John Halamka, CIO of Beth Israel Deaconess Medical Center. “We’ve used eScription since 2002 and it has enabled us to deliver consistent documentation in an increasingly paperless records environment, and has saved us more than $5 million in transcription costs, while not increasing clinician workload associated with creating transcribed documents.”

The success of the eScription platform is due, in part, to the fact that it enables clinicians to create documents in the most efficient way possible – by speaking into a phone, dictation device or electronic medical record (EMR). Because there is little to no impact on physician workflow, the improved turnaround time of completed medical records is often the only operational indication that the eScription platform is present. eScription background speech recognition software has created speech models for more than 50,000 clinicians, without explicit training or any change to their clinical documentation process.

The developers of eScription CAMT pioneered the approach of background speech recognition, by which clinicians’ dictations are processed into fully formatted draft documents that MTs quickly review and edit, often doubling productivity when compared to traditional transcription. To maximize the speech recognition processing power, eScription is based on an ASP model, which requires little capital investment for healthcare providers.

“We were amazed at how quickly the first speech recognized reports for editing were produced,” stated Juana R. Colon RHIA, Corporate Director of Health Information Management at Orlando Regional Healthcare, a 1780 bed multi-hospital system that went live on eScription in August 2008. “The rapid improvement in productivity has already eliminated a significant amount of our outsourced work and the turnaround time of patient care reports has decreased by three hours in less than two months.”

Operational benefits from eScription CAMT include:

More Productive MTs — Highly accurate and formatted drafts, which are quickly reviewed and edited in a Word-based transcription client, enable MTs to typically double productivity.
Decreased Transcription Costs — By increasing in-house capacity and/or reducing or eliminating outsourcing, healthcare organizations realize significant cost savings and rapid ROI.
Maximized Clinician Productivity for Document Creation — Clinicians dictate as usual, whether into a telephone or a digital dictation device, or they may dictate partial notes directly into an EMR.
Decreased Medical Record Turnaround Time — Customers typically realize dramatically reduced document turnaround times, when compared to previous systems typically from days to hours.

“The eScription platform comes from a culture of listening to our customers and responding with continuous innovation and improvement,” said Ben Chigier, co-general manager of Nuance’s eScription business unit. “What’s more, customer support, training and account management services are key to the value we provide. Our goal is that our customers achieve continuous productivity gains, workflow improvements, and financial results to maximize their value from eScription.”

eScription is designed specifically for large healthcare organizations that process more than five million lines of transcription per year. For more information about eScription, please visit http://www.nuance.com/dictaphone/products/eScription/ or contact salesinquiries@escription.com.

About Nuance Healthcare

The eScription platform is a key solution within Nuance’s healthcare portfolio of proven, speech-enabled clinical documentation and communication solutions including the Enterprise Express on-premise platform for integrated transcription workflow and speech recognition, Dragon Medical for real-time speech recognition within an EMR, and radiology solutions including PowerScribe, RadWhere, RadPort, RadCube, 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. For more information on all of Nuance’s Healthcare solutions please visit: http://www.nuance.com/dictaphone/.

Nuance Communications, Inc.

Nuance 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. For more information, please visit www.nuance.com.

Nuance, the Nuance logo, PowerScribe, RadWhere, RadPort, RadCube, Veriphy, Dictaphone, Dragon and Enterprise Express 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.