Dragon Systems in Deal with AOL for Speech Recognition

Dragon Systems Inc., a provider of speech
recognition technology, said it has signed an agreement to work with America
Online to develop and deploy speech technology for expanded Internet use.

Dragon also entered into an expanded marketing agreement with America Online
to sell its speech recognition products. Nearly 300,000 units of Dragon Point
& Speak already have been sold through AOL since July
1998.

The effort is designed to enhance the experience of AOL members, to accelerate
the adoption of speech technology for the Internet, and to broaden the number
of online users by making online access easier.

The two companies first entered into a multi-million marketing arrangement
last spring. Dragon Systems’ products, including Dragon Point & Speak, an
entry-level
continuous dictation product, are fully compatible with AOL, including e-mail,
Internet chat rooms, and AOL Instant Messenger. The positive customer response
to the offerings led to the expanded relationship, the companies said.

“Dragon Systems’ products have enhanced our members’ online experience,”
said Jan Brandt, AOL’s president of marketing. “We look forward to exploring
other initiatives with Dragon to further enhance and deploy Dragon’s speech
technology on AOL.”

“AOL’s keen understanding of the Internet and of the online community will
help us to develop products and services that are truly responsive to the
needs of AOL members,” said Janet Baker, chairman and chief
executive officer of Dragon Systems. “Our expanded relationship will help us both to grow in
the fast-paced online marketplace.”

Dragon Systems develops and markets speech and language technology that, in
multiple languages (including American English, British English, French,
German, Italian, Spanish and Swedish), enable users to create text, issue
commands, and enter and access data simply by speaking.