Nuance Closes Acquisition of VoiceSignal

BURLINGTON, Mass., August 27, 2007 – Nuance Communications, Inc. (NASDAQ: NUAN), the world’s leading supplier of speech solutions, today announced it has closed the acquisition of VoiceSignal Technologies, Inc. With proven technology, broad industry relationships, real-world deployment experience and an organization passionate about speech technology, the combined company will be able to develop new and innovative speech solutions and mobile search capabilities to more effectively serve the rapidly expanding market for mobile services and applications.

The combination of Nuance and VoiceSignal creates an organization that can satisfy the accelerating demand for speech-enabled mobile devices and services. Nuance expects to serve more than one billion consumers within the next three years with voice-based mobile solutions that allow people to simply and effectively navigate, retrieve and transact across the vast and growing universe of content and services available in mobile phones, automobiles and personal navigation devices. The combined company will include among its mobility customers AOL, AT&T, DaimlerChrysler, Ford, Kyocera, LG, Motorola, Nokia, Palm, Rogers Wireless, Samsung, Sanyo, Sony Ericsson, Sprint, RIM, T-Mobile, Toyota and Vodafone.

In connection with the acquisition of VoiceSignal and in accordance with NASDAQ Marketplace Rule 4350, Nuance will grant 446,750 shares of its common stock, in the form of stand-alone restricted stock units, as an inducement that is material to 65 individuals entering into employment arrangements with Nuance. The restricted stock units will be granted upon the approval of the Compensation Committee of Nuance’s Board of Directors. The restricted stock units generally vest over a four year period.

About Nuance Communications, Inc.

Nuance Communications, Inc. (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. For more information, please visit www.nuance.com.

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