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MoMo 13. September 2010 FrankfurtDragon Dictation & Dragon Search for iPhone

Reimund Schmald, Business Development Director DACHRichard Breuer, Senior Sales Engineer

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Agenda

• Nuance – Brief Overview

• The Nuance Dragon Apps

• Launch Updates

• The Nuance Mobile Vision

• The Nuance Business Model

• The Nuance Mobile Developer Program

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• Broadest, deepest, highest-quality set of platform technologies for speech & language, covering technologies such as:

– Automatic Speech Recognition (ASR)– Voice Identification– Predictive Text– Text to Speech (TTS)– Voice Mail to Text (V2T)– Optical Character Recognition (OCR), document conversion and workflow

• > 6000 employees in > 35 offices worldwide

• IP portfolio of 1000+ patents and patents pending

• Speech solutions support 52 languages and dialects

• 700 speech scientists and engineers & a professional services organization of more than 900 solutions experts

• Nuance technology empowers more than 9 billion customer care calls and is in more than 4 billion mobile devices

• FY 2009 revenue: non-GAAP revenue just over 1 billion US $

World’s Premier Speech & Language Platform Company

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Car, Phone, Book Reader, NaviSpeech is already mainstream

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Voicemail to textSpeech is already mainstream

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Healthcare Enterprise Mobile Imaging

Medical record management and manual transcription services in

healthcare

Customer service and call center applications

Command and control capabilities, and voice search and messaging applications for mobile

phones and automobiles

MFP scanning, PDF and document automation

solutions

Nuance offers Solutions Focused on Four Key Markets

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Nuance Flagship: Dragon Technology Everywhere

• Nuance’s Umbrella technology – extending to many platforms, devices and markets

• Speech recognition turns speech into text at up to 160 words per minute, that is 3 times faster than most people type

• Dragon NaturallySpeaking: More than 16 million users world wide - Available in 8 languages

• Recently acquired MacSpeech; now also offering speech recognition for Macintosh

• Nuance’s desktop speech recognition has won many industry awards and is also available as an Iphoneapplication

• Many targeted applications for Consumer and Professional Users

– Dragon NaturallySpeaking Standard & Preferred– Dragon NaturallySpeaking Mobile or Wireless– Dragon NaturallySpeaking Professional– Dragon NaturallySpeaking Legal & Medical– MacDictate and MacScribe– Nuance Voice Control for Automotive– Dragon Dictation & Search for iPhone & Blackberry– Dragon Medical Mobile Apps for SmartPhones

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Dragon Dictation & Dragon Search AppsQuick Overview

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Dragon Dictation and Dragon Search

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Launch Update Dragon Dictation and Search

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Executive Summary – UK & D

• Audience – 2 weeks after launch– 500k Dragon Dictation download– 50k Dragon Search Download – ~10% of TAM

• Awareness – Extensive & overall very positive– Top #1 in D and #3 in UK– Over 200 pieces of quality coverage – Bild, BBC, FAZ, Sunday Times, …

• Activity – Peak ½ million daily transactions across 2 countries

• User Feedback – Mixed but generally positive – Generally, either very positive or quite negative (“contact names upload”)– Overall ratings slightly worse than US (2.5 vs. 3 stars)

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Press Coverage in D

• Press release covered on 30 PR portals

• 142 pieces of quality coverage on Dragon Apps – More than 2/3 of the coverage is in TIER 1 publications– 11 maximum impact press clippings (such as Bild, FAZ, WiWo,

dpa, Focus, …) – 9 radio stations covered the Dragon Apps– 55 online articles in daily local newspapers – 24 important IT publications (CHIP, PC Welt, MacWelt,

Funkschau, …)– 43 articles in tier 2 publications

MaximumImpactRadioCoverageDailies -onlineIT Publication

Tier 2coverage

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Quotes from Press Coverage in D

This is a first and it is working well.”Sebastian Matthes, Wirtschaftswoche

“A fascinating program - you should definitely have a look at yourselves”Michael Gronau, Berliner Zeitung

“You will be amazed: The recognition rate is nearly breathtaking.– much better than the Google system. If you talk about easy things the results are almost perfect.”Dr. Michael Spehr, FAZ

„The results are amazing. The app has some problems with namesbut the recognition of normal sentences worked very well in my test.”

Thomas Schmidtutz, Euro am Sonntag/ Finanzen.net

“Dragon Dictation is a quantum leap in terms of speech recognition for smartphones. The apps works extremely well, so well that the developers could easily take money for it. So do not lose time and install it better today than tomorrow.”Marc Fleischmann, Bild.de

“Dragon Dictation spits text instead of fire. This speech recognition is impressive.”Ole Leitloff, Macwelt

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The Nuance Mobile Vision

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Mobile Applications – Nuance Vision = Reality!

Mobile Command & Control of device 

functions

Mobile Command & Control of device 

functions

Mobile SearchMobile Search

“Find me a health food store near Cambridge, MA”

“Go to website ‘Nuance dot com’”

“Find artist ‘Shakira’.   “Play that,” “pause…”.

Mobile CareMobile Care

“Show ‘Minute Balance.’”“Top‐up account.”

Mobile MessagingMobile Messaging“SMS ‘Steve Chambers’”

E‐Mail “‘Mike Thompson,’subject ‘meeting tonight’ body ‘Mike, I’ll see you in the lobby at 

7:15.”

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Nuance Mobile Vision

1. Design, build and ship innovative Embedded Applications in Handsets, Autos, and Consumer Electronics devices in mass volume.

2. Complement the embedded mobile application portfolio with Nuance’s “Connected Services” for Phones, Consumer Devices & Auto Markets.

With the Dragon Apps we do quickly reachmillions of consumers.

We deliver the proof: SPEECH WORKS!

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The Nuance Business Model

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Driver for Business (Why are we doing it)

By speech-enabling mobile applications, mobile developers enable end-users to bypass the challenges of complex menus, cumbersome keypads, and seemingly endless clicks – while also delivering users enhanced

smartphone usability and higher productivity – all powered simply by voice.

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Business Model: Speech-To-Text as Hosted Service

Package Cost $1,000 $1,000 1.x1.x¢¢ per per txtx

$2,000 $2,000 1.y1.y¢¢ per per txtx

$5,000 $5,000 1.z1.z¢¢ per per txtx

# of transactions ~60.000 ~150.000 ~500.000

Purchase of Pre-Paid TransactionsPayment based on transaction buckets – oriented on volume

Pre-payment via credit card, digital commerceDiscount for higher commitments

Same price, T&C for worldwide transactionsHigher tier customers will likely go to custom contracts

Customized OptimizationsOn request against SoW

Compliment with Hybrid Approachembedded ASR and TTS

embedded predictive text (T9, XT9, T9 Trace)embedded handwriting (T9 Write)

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The Nuance Mobile Developer Program (NMDP)

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NMDP Developer Life Cycle

1. Developer goes to NMDP site1. Developer goes to NMDP site

2. Downloads SDK2. Downloads SDK

3. Purchases optional support package

3. Purchases optional support package

4. Developer “graduates”4. Developer “graduates”

5. Developer prepays for production usage5. Developer prepays for production usage

6. App goes to App Store6. App goes to App Store

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1st Sales Success: The T-Mobile US „Genius Button“T-Mobile branded „mytouch 3G“ device with hardware

button for application launch

Hybride approach:embedded ASR & TTSOther: Siri (now Apple)

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Get Started

To request an invitation for beta access to the Nuance Mobile Developer Program please email

reimund.schmald@nuance.com

mobile: +49 171 5591906

Thank you!