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To: Mike Morley who wrote (70172)12/23/1998 6:18:00 PM
From: Diamond Jim  Respond to of 186894
 
HONG KONG (Dec. 23) BUSINESS WIRE -Dec. 23, 1998-- Easy-to-use Integrated System Extends L&H's Asian Language Computing

Lead; Receives Strong Support from HP, Intel

Lernout & Hauspie (NASDAQ:LHSPF)(EASDAQ: LHSP) (L&H(TM)), a worldwide market leader in speech and linguistic technologies, products
and services, today unveiled the world's first PC-based Cantonese continuous speech recognition product. Making its worldwide debut in Hong
Kong, the unique product, called SP2, breaks new ground in the field of Chinese language input, specifically for PC users who speak Cantonese.
SP2 enables users to enter Chinese text by speaking continuously or naturally into a microphone. The fully integrated system also enables users
to switch effortlessly to a graphics tablet. SP2 converts Cantonese speech into both simplified or traditional Chinese characters. The company
expects to introduce a Mandarin language version of the product in Q1 '99.

SP2 was originally developed by Louis Woo and Yen-Lu Chow, co-founders of Asiaworks Ltd., who recognized the difficulty of Chinese input on
keyboard-based PCs. Asiaworks' outstanding technologies led to a strategic partnership last month with Lernout & Hauspie.

"Despite dynamic growth, the penetration of personal computers in Asia is still relatively low, especially in China and Japan," said Yen-Lu Chow.
"The key challenge lies in the difficulty of Asian language input on keyboard-based PCs. Now, with the launch of SP2, Cantonese-speaking users
can use the most direct and natural way to communicate and interact with personal computers -- human speech."

"To ensure the accuracy of our speech recognition system, all speech samples were collected in Hong Kong to get a good representation of
different accents in the local dialect," said Louis Woo, president of L&H Asia. "Not only does the system have words commonly used in Hong
Kong, it also includes a rich dictionary of phrases, including Hong Kong slang, names of districts, streets, companies and celebrities." Industry
Support from Intel, Hewlett-Packard

SP2's introduction has garnered strong industry support from Intel and Hewlett-Packard. Intel, the world's largest chip maker, has been working
very closely with software developers worldwide in a bid to increase the PC's ease of use. The company recently held the Intel Speech Forum in
Beijing, attracting an impressive number of speech technology developers from all over the world.

To benefit Hong Kong users, Hewlett-Packard has bundled SP2 with its latest HP Pavilion 8315H Home PC and DeskJet 670C. From now until
the end of February, customers can also enjoy two months free Internet service from HK Supernet with this special promotional offer.

"Speech technologies will create many new applications for high-performance personal computers, including speech recognition solutions," said
Tom Burns, director of Content Group that Intel Asia Pacific. "The use of speech technologies will overcome the challenge in inputting content into
the PC and enabling easier PC usage, making it very beneficial to PC users in Asia."

"L&H is one of the companies we've been working with in the speech technology area," said Burns. "We're very pleased to see L&H's launch of
the world's first Cantonese continuous speech dictation product. Intel is dedicated to providing ever more powerful microprocessors to provide
speech-based products with the necessary performance. We'll continue to work with software developers in the region to create more leading-edge
speech products for Asian markets."

Michael Lam, country manager of computer channels organization at Hewlett Packard Hong Kong, added "SP2 represents a breakthrough in
innovation and marks a paradigm shift in input methods for Cantonese users in Hong Kong. It significantly improves flexibility and ease of use,
even for first time users." Key features of SP2 include: -- Users can use SP2 with commercial and home PC software packages

widely used in Hong Kong to increase their productivity, while

adding fun to the use of PCs. -- Optimized for commerce,
financing, government affairs and related

topics, SP2's speech dictation accuracy can reach more than 90%.

With speech and handwriting combined, accuracy can even approach

100%. -- SP2 supports multiple users on a single PC and enables users to

mix voice command and control with voice dictation. It also has a

number of powerful tools for calibrating the microphone for

ambience noise and for creating macros. -- SP2 comes with a built-in tool window for inputting punctuation

marks, further increasing the input speed. -- SP2's handwriting recognition component is a true plug-and-play

solution. It has high accuracy in recognizing highly cursive hand

writing, either in traditional or simplified Chinese. SP2: Pricing,
Availability and System Requirements

SP2 is available immediately at a special launch promotion price of HK $1,550. It comes with a microphone, graphics tablet, system CD and user
manual. SP2 is distributed exclusively by PacRim technologies Ltd. in Hong Kong through its established network of retail outlets.

SP2 runs on any PC with Microsoft(R) Windows(R) 95/98 in traditional Chinese; or English Microsoft(R) Windows(R) 95/98 running with Chinese
overlay systems such as Richwin or Chinese Star; Pentium 166 MHz or faster processor; at least 32 MB RAM and 250 MB hard disk space;
SoundBlaster(R)-compatible 16-bit soundcard. About Asiaworks

Founded in 1997, Asiaworks is a Singapore-based company. Its products also include AWin-SPK 1.0, a continuous speech dictation, and cursive
handwriting recognition and full sentence phonetic keyboard input offering in Mandarin. Lernout & Hauspie has invested in Asiaworks, which gives
the company exclusive rights to a Asiaworks' Chinese language technologies that combine continuous speech dictation, handwriting recognition
and full sentence phonetic keyboard input. Asiaworks also becomes part of L&H's global operation, further enhancing L&H's strengths in Asian
markets. About L&H

Lernout & Hauspie Speech Products (L&H) is a global leader in advanced speech and language solutions for computers, automobiles,
telecommunications, embedded products, consumer goods and the Internet. The company is making the speech user interface (SUI) the
keystone of simple, convenient interaction between humans and technology, and is using advanced translation technology to break down cultural
barriers. L&H's products and services originate in four basic areas: automatic speech recognition (ASR), text-to-speech (TTS), digital speech and
music compression (SMC) and text-to-text (translation). For more information, please visit Lernout & Hauspie Asia's new Web site at
www.lhs.com.hk.

This news release contains forward-looking statements. Such forward-looking statements, include, without limitation, that the products' features
will perform as stated herein and that the L&H Mandarin language product is scheduled to be available in Q1, 1999 and. Readers are cautioned
that such forward-looking statements are subject to material and adverse change and involve risks and uncertainties, including, without limitation,
risks associated with rapid technological change, product development and introduction and competition. The 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.