LERNOUT & HAUSPIE SIGNS LICENSING AGREEMENT
WITH MEDIAPHONICS

L&H to Speech-Enable MediaPhonic’s PhoneRider CyberDesk

Product for Remote, Real-Time Access to E-Mail, Voice Mail, Fax

LOS ANGELES, Calif. — March 3, 1998 — Lernout & Hauspie Speech Products (L&H) (NASDAQ: LHSPF; EASDAQ: LHSP.ED) announced today at the Computer Telephony Expo here in Los Angeles that MediaPhonics has licensed its Text-to-Speech (TTS) technology to speech-enable their product, PhoneRider CyberDesk. PhoneRider CyberDesk is a desktop-based computer telephony integrated solution that allows users to remotely access and manage MS Exchange unified e-mail, voice mail and fax from any telephone, in real time. This agreement signed by L&H addresses the growing telephony market and is evidence of the increasing importance of speech technology in computer telephony applications.

PhoneRider CyberDesk, first announced at Comdex last Fall, is an ideal solution for business users who are required to spend significant time away from the office and need to remain connected. It is an example of how speech technology is beginning to revolutionize business communications in a variety of markets. Using speech technology, the product can "read" up-to-the-minute e-mails and faxes to users, via any telephone.

"We are delighted to work with MediaPhonics to provide the speech technology for PhoneRider CyberDesk. The product provides a breakthrough offering for desktop users," said Jerry Calabrese, president of L&H’s Core Technology Division. "This agreement also strengthens L&H’s technology offerings in the burgeoning telephony market, where speech technology will have a dramatic impact over the coming months. The inclusion of L&H technology in Mediaphonic’s product expands our position in this critical market."

"This agreement combines the best of computer telephony integration and speech technology, allowing users to remotely access and control their voice-enabled PC with a simple telephone call," said Frederic James Gentizon, MediaPhonics president and chief executive officer. "With PhoneRider CyberDesk, the user’s PC becomes humanized — it calls cellular phones to read e-mail and faxes and to play voice mail."

Key Features

PhoneRider CyberDesk, incorporating L&H’s speech technologies, offers users several key features for staying connected. These features clearly demonstrate the advantages of speech recognition and speech-enabling technology in a telephony solution, and include:

·         Remote Access to Unified Messaging: Any telephone can provide access to all forms of messaging, including voice mail, e-mail and faxes. Users can call the PhoneRider CyberDesk-equipped PC to have it play recorded voice mail, read e-mail using L&H TTS conversion and read incoming fax headers.

·         Remote Voice Reply: PhoneRider CyberDesk lets users reply to an incoming e-mail with a voice mail message. The original sender receives a message containing a wave file that is played on their PC when double-clicked.

·         Remote Forwarding: Users can call the PhoneRider CyberDesk-equipped PC to request that all or a select number of e-mails and faxes are forwarded to any fax machine.

·         One Number Follow Me: PhoneRider CyberDesk, using L&H TTS as an auto-attendant, transfers all incoming calls to any internal or external phone number through a PBX or Centrex system.

PhoneRider CyberDesk is available today through major retail outlets, VARs and Interconnect companies. For further details, please contact MediaPhonics (Web: http://www.mediaphonics.com) or its sales representative in North America, Dial Digital Inc. at (888) 237-8018, Suite 103-3989 Henning Drive, Burnaby B.C. Canada V5C6N5, (604)-291-8838 (Web: http://www.dialdigital.com).

About MediaPhonics

MediaPhonics is a French registered company with headquarters in Evry (France) and offices in France, Switzerland and Vancouver, Canada.

MediaPhonics designs and markets award winning hardware, firmware and software CTI architectures and products for computer telephony applications. MediaPhonics core CTI technology enables computers to power telephones and the telephone to control computers. The company’s mission is to create a bridge between telecommunications and computers by providing companies and users with solutions to meet today’s telecomputing challenges

Recently MediaPhonics entered into a business partnership with Dial Digital Inc. for the marketing and sales of the MediaPhonics technology and products in North America.

About Lernout & Hauspie

Lernout & Hauspie Speech Products (L&H) is an international leader in the development of advanced speech technology for various commercial applications and products. The company is divided into four divisions: core technologies; dictation, a division dedicated to discrete and continuous speech offerings; translation services and products; and Internet services. Its four core technologies are automatic speech recognition (ASR), text-to-speech (TTS), digital speech compression and text-to-text (translation).

The company has its worldwide headquarters in Ieper, Belgium, its U.S. headquarters in Burlington, Massachusetts and international sales offices throughout Asia.

This Press Release contains forward-looking information that involves risks and uncertainties, including statements about L&H’s objectives, expectations and intentions. Such statements include statements that by signing this agreement with MediaPhonics, that MediaPhonics will use L&H speech technology in its forthcoming products, MediaPhonics will complete these products on a timely basis, if at all, that once developed, they will perform as anticipated, or that MediaPhonics will play a key role in the distribution of the L&H text-to-speech in the telephony industry. Readers are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, that by signing this agreement with MediaPhonics that they will not be able to use the L&H speech technology and that L&H will not be able to develop TTS technology for MediaPhonics specific applications, or that once developed any of these products will perform as anticipated or be commercially successful. The forward -looking statements contained herein speak only as of the date of this release. L&H expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in L&H’s expectations or any change in events, conditions or circumstances on which any such statement is based.


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