Lernout & Hauspie Prevails in its CounterclaimAgainst Alpha Software Lawsuit.

BURLINGTON, Mass.--(BUSINESS WIRE)--Aug. 12, 1998--Lernout & Hauspie Speech Products (NASDAQ:LHSPF) (L&H) today announced that the American Arbitration Association has ruled in the case of Alpha Corporation versus Kurzweil Applied Intelligence Inc. (a wholly-owned subsidiary of Lernout & Hauspie

In December of 1997, Alpha Software Corporation filed suit against Kurzweil Applied Intelligence for $12 million in claimed damages for breach of contract. L&H counter-sued Alpha for failure of non-payment of invoices and other claimed damages.

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) a keystone of simple, convenient interaction between humans and technology, and it is blending human and machine translation technology, tools and services to break down language barriers around the world. 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 on the World Wide Web at www.lhs.com.

All product names and trademarks mentioned herein are trademarks of L&H and their respective subsidiaries.

    CONTACT: Lernout & Hauspie
              Worldwide PR/IR:
              Ellen Spooren, 781/203-5344
              espooren@lhs.com
              or




              Lernout & Hauspie
              Corporate Com. USA:
              Audrey Pobre, 781/203-5341
              apobre@lhs.com
              or
              Lernout & Hauspie
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              Media Contact Europe:
              Nick Spencer,  44 1344-873-445
              nspencer@lhs.com
              or
              Lommaert & Blondeel Consultants
              Investor Contact Europe:
              Annemieke Blondeel, 44 181 850 6880
              lommaertblondeel@netmatters.co.uk