Kurzweil Applied Intelligence and PC Connection Announce Distribution Agreement.

WALTHAM, Mass.--(BUSINESS WIRE)--Feb. 7, 1995--Kurzweil Applied Intelligence Inc. (NASDAQ: KURZ) announced today it has entered into an agreement with PC Connection Inc. to be the first Windows voice recognition system distributed by the leading source of PC systems, software and peripherals.

PC Connection will promote Kurzweil VOICE for Windows Release 1.2, the award-winning voice recognition system for personal computers, through the company's catalogs and inbound and corporate outbound telemarketing efforts.

Mark D. Flanagan, Kurzweil AI's executive vice president, said, "PC Connection is the premier direct reseller in the PC industry. We expect this partnership will dramatically expand distribution for Kurzweil VOICE for Windows, allowing us to reach millions of qualified prospects. We are confident that, together, Kurzweil AI and PC Connection can educate the PC market about the significant benefits of our voice recognition system."

Ron Brann, PC Connection's new product manager, said, "PC Connection has a successful history of introducing new technologies to the personal computer marketplace. After taking a close look at this emerging product category, we decided that Kurzweil VOICE for Windows Release 1.2 is clearly a leader in voice recognition systems for the PC marketplace. We are looking forward to working with Kurzweil AI to introduce Kurzweil VOICE to our customer base."

Kurzweil VOICE for Windows Release 1.2 will be promoted to the over 15 million active targeted buyers in the consumer, SOHO and medium-sized business markets who receive PC Connection's ten annual Superstore Catalogs. Also Kurzweil VOICE for Windows Release 1.2 will be targeted to active buyers in the large company, Fortune 1000, government and education markets who receive PC Connection's three annual Enterprise Catalogs. In addition, PC Connection will initiate outbound telemarketing targeted to PC Connection's largest corporate and government accounts.

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PC Connection Inc., headquartered in Marlow, N.H., is a privately held direct reseller that supplies computers, software, peripherals, and information to individuals, corporations, and educational and government institutions through catalog distribution and direct mail, telemarketing, advertising and in major microcomputing publications and through direct sales on television. The company has two divisions: PC Connection and MacConnection.

Kurzweil Applied Intelligence Inc., headquartered in Waltham, Mass., was founded in 1982. The company develops, markets and supports automated voice recognition systems used to create documents and interact with personal computers by voice. Its market- leading VoiceMED family of products are voice-enabled medical reporting systems; and, Kurzweil VOICE is an easy-to-use voice recognition system for Windows.

All products referenced are trademarks of their respective companies.

CONTACT: Brodeur & Partners

Jeff Aubin, 617/622-2800 (for Kurzweil AI)

or

PC Connection

Ron Brann, 603/446-3383