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NUANCE COMMUNICATIONS, INC. FIRST QUARTER FISCAL 2013 EARNINGS ANNOUNCEMENT PREPARED CONFERENCE CALL REMARKS

In some cases, being wherever the consumer is means selling products to them when they are ready to buy. As CG companies continue their experimentation with direct-to-consumer sales—through their own online storefronts or social media—they will need to start thinking more like the retailers with which they have long partnered. This shift in mindset will require changes in the marketing mix to accommodate increased investments in social media, mobile and other digital channels. Measurement models will need to change as well, as marketers focus on advanced metrics and analytics that measure not just exposure to ads, but also engagement with. | Nuance NUANCE COMMUNICATIONS INC. FIRST QUARTER FISCAL 2013 EARNINGS ANNOUNCEMENT PREPARED CONFERENCE CALL REMARKS Nuance is providing a copy of these prepared remarks in combination with its press release to provide shareholders and analysts with additional time and detail for analyzing our results in advance of our quarterly conference call. As previously scheduled the conference call will begin today February 7 2013 at 5 00 pm EST and will include only brief comments followed by questions and answers. These prepared remarks will not be read on the call. To access the live broadcast please visit the Investor Relations section of Nuance s Website at www.nuance.com. The call can also be heard by dialing 800 230-1085 or 612 234-9960 at least five minutes prior to the call and referencing code 279312. A replay will be available within 24 hours of the announcement by dialing 800 475-6701 or 320 365-3844 and using the access code 279312. Opening Remarks In our press release we reported Q1 13 non-GAAP revenue of 492.4 million up 28.9 from 382.0 million a year ago. Total GAAP revenue in Q1 13 was 462.3 million up 28.2 from 360.6 million in Q1 12. We recognized non-GAAP net income in Q1 13 of 113.0 million representing 0.35 per diluted share compared to non-GAAP net income of 108.5 million or 0.34 per diluted share in the same period last year. We recognized GAAP net loss in Q1 13 of 22.1 million or 0.07 per share compared to Q1 12 GAAP net income of 9.3 million or 0.03 per diluted share. Non-GAAP operating margin was 29.2 for Q1 13 compared to 32.5 in Q1 12. First quarter operating cash flow was 122.9 million up 37.3 from 89.5 million in the same quarter a year ago. Nuance ended Q1 13 with a balance of cash and cash equivalents of 961.1 million. Please see the section below Discussion of Non-GAAP Financial Measures for more details on non-GAAP data. Highlights from Q1 13 Compared to Q1 12 non-GAAP revenue grew 29 non-GAAP operating income grew 16 and operating cash flow