2. Speech allows your callers to conduct business, TODAY, over any network just by talking!

3. SpeechWorks at a Glance  Founded 1994, Headquarters Boston, MA (SPWX)  Core Software: – Automated Speech Recognition (ASR) – Text – to – Speech (TTS) – Speaker Verification  Technology Origins: MIT  320+ people around the world  Market Leadership 2001 #1 in market share* (2001 Rev. 45m +49% growth)  Vertical Focus: – Tier 2 ~ Retail ~ Utilities ~ Government – Tier 1 ~ Financial Services ~ Healthcare ~ Travel & Hospitality ~ Telecommunications

4. Why Companies Deploy Speech… JustificationRank Reduce Operational Costs1 Increase Successful Call Resolution Rate2 Increase Revenue Per Agent Interaction3 Increase Customer Satisfaction4 Increase Self-Service Options for Callers5 Reduce Capital Expenses6 Ability to Deploy Additional Apps More Quickly7 Source: Kelsey Group ROI Study, June 2002

5. Kelsey Group ROI Study Highlights Critical MetricsFindings Average Annual Savings per Deployment$1.02 Million ROI Met or Exceeded Your Expectations100% - Yes Average Cost Recovery (Payback)9.5 months Fastest Return on Premise Based Solution6 months Respondents Recovering Costs in 12 Months or Less 90% Increased Automation over Existing IVR (Touch-Tone) 30 to 55% Source: Kelsey Group ROI Study, June 2002

6. Speech Delivers Value  Reduce Costs  Increase Customer Satisfaction  Competitive differentiation  Revenue generation

7. Reduced Costs: Amtrak  Before – Annual call volume: 2.8 million calls – Touch Tone VRU handled 42% of all train status calls (1.2 m calls)  After – Speech-activated train status app deployed September 2001 – Speech handling 72% of calls Application Additional Automated Calls (Annual) Savings per call Annual Savings Train Status850,000$1.60$1.36 million

8. Reduced Costs: United Airlines Flight Information “United Airlines flight information system has taken over 50 million calls since it went live at the end of 1999 and has saved UAL over $25 million.” - Bob Bongiorno, UAL - Managing Director of Customer Service SpeechWorks 2002 Global SpeechDays Event

9. Purdue University Banking Call Center Study According to a benchmark study on bank call centers by the Center for Customer-Driven Quality at Purdue University…  Speech-enabled calls…  …improve Customer Service and save time. – Speech interaction reduces call time by 35%, compared to touchtone Source: Purdue University, December 2001  …provide compelling cost savings. – Agent-assisted calls cost ~ $4.00 – ASR calls cost only 45 cents!  …free agents from low-value calls, which… – …can last almost five minutes – …have an abandon rate of almost 6% – …have an average hold time of 37 seconds

10. Gartner Customer Satisfaction Study: Satisfaction Comparison Source: Gartner SpeechWorks Customer Satisfaction Study, 2002 Note: 2% Unsure Touch Tone vs. Speech Recognition Internet vs. Speech Recognition

11. Respondents ‘Top of Mind’ Reactions Voice Recognition ‘Likes’  It’s quick (32%)  Easy to use (15%)  Answer all questions, get needed info (12%)  Don’t have to wait or be on hold (11%)  Works well overall (8%) Voice Recognition ‘Dislikes’  Nothing negative about voice recognition (28%)  Impersonal, prefer live person (19%)  Can take more time (14%)  System can have difficulty understanding me (14%)  System couldn’t answer the specific question (10%) Source: Gartner SpeechWorks Customer Satisfaction Study, 2002

12. Customer Satisfaction: Citibank Germany  Expected results for stock quoting/trading application – Ramp-up rate was based on experience in persuading customers onto existing Touchtone IVR Systems Expected Take- up Rates Year 1Year 2Year 3Year 4Year 5 30%40%50%60%70% Buy & Sell Orders Placed by Phone 0 10 20 30 40 50 60 70 80 90 100 13579 1113151719212325272931 Weeks Since Deployment Percentage of Orders Executed on IVR Percentage of Orders Executed on the IVR Buy & Sell Orders Placed by Phone Weeks Since Deployment 13579 1113151719212325272931 10% 50% 100%  5 Year Target Reached in 5 Months – and still rising!

13. Competitive Differentiation: CIBC 1. Speech-activated retail banking allows customers to: – Register and pay bills from any phone – Re-order checks and locate bank branches and bank machines 2. Speech-activated discount brokerage service allows customers: – To place equity trades, review account information and open orders 3. Speech-activated mortgage service allows customers to: – Obtain current mortgage rates and comprehensive information about a specific mortgage  Embedded Text-to-Speech in ATMs (Speechify Solo) Have received press and analyst praise for innovative customer service Adopted and deployed speech across 4 business units:

14. Revenue Generation – Voice Portal: AOL  Ten speech applications in service – Check email, weather, sports, stocks and news  Members can customize the weather, stock and headline news information  Can default to weather information based on area code from where call is placed  Over 200,000 members have signed up for AOLbyPhone and agreed to pay $4.95/month for service (800) AOL-1234  Subscription service generates $1 million in incremental revenue per month

15. Summary of Speech Versus Touch Tone Touch-Tone Speech Speech Advantages  More intuitive interface  Flattens menus  Facilitates hands-free use  Easier navigation through commands  Ease of use – spelling with touchtone keys – entry of currencies, dates, etc. with touchtone keys

16. Thank you!