Dragon Systems Introduces First "Software-only" Windows-compatible PC
Dictation Products

DragonDictate for Windows family of speech recognition products support
standard multimedia sound cards and lead industry in price/performance

NEW YORK, NY, June 28,1994--Dragon Systems, Inc., of Newton, MA, announced
today at PC Expo its DragonDictate for Windows version 1.0 family of
speech-to-text dictation systems. Like the popular DragonDictate for DOS,
the Windows-compatible version consists of the Starter Edition, Classic
Edition and Power Edition. These products offer active-vocabulary sizes of
5,000, 30,000 and 60,000 words respectively, providing users with PC-based
dictation solutions uniquely matched to their particular needs. In Q3 1994
to Q1 1995 Dragon Systems also plans to offer foreign language versions of
DragonDictate for Windows in UK English, French, German, Italian and
Spanish. Additional languages currently in development are expected to
follow.

"By introducing the industry's first 'software only' Windows-compatible
dictation products, Dragon Systems is further fueling the rapid
acceleration of speech recognition from niche to mainstream markets,"
stated Dr. Janet Baker, president of Dragon Systems. "This long awaited
development will spark access to new markets,--including (sub) portables
for the first time--and popularize unprecedented speech recognition
capabilities in the home and office."

DragonDictate 1.0 for Windows strengthens Dragon Systems' position as the
foremost provider of large-vocabulary PC-based speech recognition
products. By providing a solution for users of Microsoft Windows, Dragon
is supporting the rapidly growing use of speech recognition in many
mainstream computing environments. Business executives, lawyers,
physicians and other professionals can dictate text, enter numbers and
dates, and navigate within the Windows environment by voice. They can also
create documents from start to finish by voice alone, rather than relying
on expensive and time-consuming transcription services and administrative
support staff. DragonDictate products also allow engineers, scientists,
quality inspectors and others who work in a "hands-busy/eyes-busy"
environment to stay focused on their jobs while dictating information into
a computer. For people with repetitive stress injuries (e.g., carpal
tunnel syndrome), including journalists, and computer programmers, and for
people with disabilities, DragonDictate is the only commercially
available, fully hands-free PC dictation solution for graphical user
interfaces. In some cases it can even be the means to pursue an education,
earn a livelihood and communicate more freely.

Many New Features

DragonDictate for Windows is based on the robust recognition engine in
Dragon Systems' industry-leading DOS versions. However, the DOS versions
relied on DSPs (digital signal processors). In order to support standard
multimedia sound boards, which may or may not utilize DSPs, the
Windows-compatible products have been rewritten. This unique capability
will enable millions of existing multimedia sound card owners to add full
dictation functionality simply by installing DragonDictate software to
their existing systems. This new family of products offers numerous
enhancements and new features including:

* Third-party Sound Board Support--DragonDictate for Windows supports
industry-standard sound boards. Supported cards are: Media Vision Pro
Audio Studio 16, Creative Labs Soundblaster 16, Microsoft Windows Sound
System and IBM Audio Capture Playback Adapter.

* Dynamic Menu and Dialog Tracking--Dragon's tracking technology makes
running your applications as easy as "say what you see." The system
automatically creates commands corresponding to the currently active menus
and/or dialog boxes for most Windows-based applications.

* See What You Say--DragonDictate works directly in most word processing,
spreadsheet, database and other Windows-based applications. By working in
the target application itself, you can edit and format as you go,
monitoring the content and appearance of your finished documents or other
materials as you create them.

* Full Mouse Movement by Voice--With commands such as mouse up, drag down,
faster, button click, etc., mouse movements can be completely controlled
by voice alone.

* Windows Support and Management--DragonDictate for Windows allows you to
manage and control the Windows environment as well as your applications
completely by voice.

* Full User-customizable Vocabulary--With DragonDictate, any or all of the
words or commands in the active vocabulary can be replaced with words and
commands customized to the users' applications and preferences.

* 120,000-word Backup Dictionary with Speaker-independent Acoustic
Models--DragonDictate provides a 120,000-word backup dictionary so users
can easily access more words. Included speaker-independent acoustic models
and language statistics are unique to Dragon Systems, providing quicker
recognition of additional words outside the active vocabulary.

* Immediate Automatic Adaptation--Dictation speed and accuracy continuously
(and transparently) improve as the program automatically adjusts to your
voice, vocabulary and environment.

* Voice Macros--DragonDictate enables you to easily create "voice macros"
by assigning a single spoken word or phrase to a combination of up to
32,000 keystrokes.

* What Can I Say?--If you are ever unsure about which voice commands are
active, you simply say "what can I say?" and the system lists all active
commands and macros.

Price/Performance Leader

In March 1990, Dragon Systems became the first company to introduce large
vocabulary general purpose dictation for personal computers. DragonDictate
3.0 for DOS, released in March 1994, is Dragon's third generation of
speech recognition technology. It represents the first full family of
dictation products and provides significant improvement in accuracy and
usability over previous versions. DragonDictate 1.0 for Windows continues
this tradition of innovation and provides a range of dictation products,
at industry-leading price points.

* DragonDictate Starter Edition--With an active vocabulary of 5,000 words
and a list price of only $395, DragonDictate Starter Edition offers an
extremely cost-effective introduction to Dragon System's robust voice
recognition technology. The Starter Edition is full-featured and provides
dictation capability for users needing a low-cost speech-to-text
solution.

* DragonDictate Classic Edition--The Classic Edition has a 30,000-word
active vocabulary, a list price of $695 and meets the needs of many
professionals whose work requires large vocabulary dictation capability.
For over four years, the 30,000-word version of DragonDictate has been the
preferred PC dictation program for business and professional users as well
as students in higher education.

* DragonDictate Power Edition--DragonDictate Power Edition, priced at
$1,695 is a high-end system with 60,000-words active that is intended for
users who require extensive vocabularies for dictating widely diverse
subject matter (e.g., journalists, reviewers, etc.), highly specialized
subject matter with technical terminology, or large numbers of proper
names.

All list pricing includes the DragonDictate software, documentation and a
high quality noise-canceling microphone.

"Dragon Systems is again setting new standards for price/performance with
DragonDictate 1.0 for Windows," said Dragon Systems' Director of Sales and
Marketing, S. Ming Lee. "By supporting leading third-party sound boards,
Dragon is able to provide PC-based voice dictation to millions of users at
an unprecedented price point. By offering a full range of vocabulary sizes
and a comprehensive upgrade path, the barrier to entering the world of
large-vocabulary speech recognition has never been lower," stated Lee.

DragonDictate 1.0 for Windows require a 486/33 MHz processor, 7-1 OMB of
dedicated RAM (depending on edition), Windows 3.1 or later and a minimum
of 17-23MB of free hard disk space depending on vocabulary size.
DragonDictate products are available through Dragon Systems Certified
Resellers.

Dragon Systems, Inc., the world's leading supplier of PC speech
recognition, develops and markets high-performance, cost-effective speech
and language technology tools that enable users to input any text, issue
commands and enter and access data simply by speaking. The company also
licenses its technology in multiple languages, and works closely with OEMs
(original equipment manufacturers) and other strategic business partners
worldwide. Dragon Systems is presently porting its technology across
multiple operating systems and hardware platforms--from hand-held devices
and computers, to leading workstations, and is pursuing leading edge
research and development projects for computer and telecommunications
applications. Dragon Systems U.K. Ltd., an R&D subsidiary, focuses on
speech technology for telephony and high-noise environments.

Privately held and profitable since its founding in 1982, Dragon Systems is
headquartered in Newton, Massachusetts with a subsidiary in Cheltenham,
England. As one of the industry's largest speech recognition technology
organizations, Dragon Systems continues to grow at an annual rate of over
50 percent.

Dragon Systems Inc
320 Nevada St, Newton, MA 02160
617-965-5200,  fax 617-527-0372

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