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Kurzweil Applied Intelligence and Alpha Software Announce Strategic Alliance

Companies plan to introduce voice recognition products to the retail market

December 3, 1996, 8:39 AM EST

Kurzweil Applied Intelligence, Inc. (NASDAQ: KURZ) and Alpha Software Corporation, Burlington, Mass., today announced they have entered into a strategic alliance to develop, market and support a full line of voice recognition software products that will be available through the PC retail channel.

These new business software applications will allow users to seamlessly integrate voice input with the keyboard and mouse, creating a more dynamic and productive approach to PC computing.

"We are very pleased to be able to announce this strategic alliance," said Thomas E. Brew, Jr., president and CEO of Kurzweil AI. "Alpha Software has a long standing reputation for quality products, effective marketing and satisfied customers. Working closely with them, we expect that retail distribution for our existing products, Kurzweil VoicePad Pro for Windows Release 1.0 and Kurzweil VOICE for Windows Release 2.5, will expand. We are also going to move quickly to introduce additional voice-enabled products with Alpha. This relationship will reinforce our leadership position in the rapidly emerging voice recognition software product category."

"Kurzweil AI is both a pioneer and a current leader in the voice recognition field," said Richard Rabins, co-chairman of Alpha Software Corporation. "Their existing products, Kurzweil VoicePad Pro and Kurzweil VOICE, are outstanding examples of best-of-breed' software. We are going to work closely with Kurzweil AI to deliver a full line of voice-enabled business applications, and to establish the standard for products in this exciting new market."

Kurzweil VoicePad Pro for Windows Release 1.0 is the world's first voice-enabled word processing application. The product allows users to create memos, letters, reports and other documents simply by speaking into a microphone attached to their PC. With Kurzweil VOICE for Windows Release 2.5, users can voice-enable their entire Windows-based PC. The product supports voice input for navigation and dictation, and it works with Windows 95 and 3.1x as well as any Windows software application. Alpha Software will leverage its strong retail distribution relationships to bring both products to market. They will initially be available at CompUSA and other leading retailers nationwide beginning in December 1996.

Except for the historical information contained herein, the matters discussed in this press release are forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties and other factors such as the availability and market acceptance of new products and product reliability, which may cause the actual results, performance or achievements of Kurzweil Applied Intelligence, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. For further information, refer to the risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Alpha Software Corporation, founded in 1982, develops and markets software that empowers users to solve complex problems. Alpha Software released the new beta version of Alpha Five Version 3 in October 1996. Alpha Software also markets Alpha Five 2.0 for Windows 95, Alpha Five 1.0 for Windows 3.1 and Alpha Four for DOS. Other Alpha Software products include Complete Home Designer, a virtual reality, 3D home design software program announced in February 1996, and NetMailer, an Internet email-merge and contact management softwareproduct announced in August 1996. Alpha Software's latest release, PowerCleaner, is a powerful disk cleaner utility that began shipping in October 1996. In October 1996, Alpha Software announced its Internet Services Division which is focused on web tools, applications and services for small to medium sized businesses and enterprises.

Kurzweil Applied Intelligence, Inc., headquartered in Waltham, Mass., was founded in 1982. The Company develops, markets and supports automated speech recognition software used to create documents and interact with computers by voice. Kurzweil VOICE is an easy-to-use voice recognition system for Windows-based PCs, and Kurzweil VoicePad Pro for Windows is a voice-enabled word processing application. The Company's medical reporting systems, VoiceMED and Kurzweil Clinical Reporter, are used in over 500 healthcare institutions nationwide.

Voice recognition software from Kurzweil AI supports MMX technology and takes advantage of new enhancements to the Intel architecture to deliver superior performance.

All product names and trademarks registered herein are trademarks of their respective companies.

This press release and other information related to Alpha Software Corporation can be found on Alpha Software Corporation's web site at http://www.alphasoftware.com or by calling 617-229-2924.

This press release and other information related to Kurzweil Applied Intelligence, Inc., Kurzweil VoicePad Pro for Windows Release 1.0, Kurzweil VOICE for Windows Release 2.5, VoiceMED and Kurzweil Clinical Reporter can be found on Kurzweil AI's web site at http://www.kurzweil.com or by calling 1-800-380-1234.