ART is in Fashion for the New Xelibri Fashion Accessory Phones.

Business Editors/High-Tech Writers

ATLANTA--(BUSINESS WIRE)--April 15, 2003

-- ART's smARTspeak NG(TM) Speech Recognition Solution Chosen by

Siemen's new Xelibri Division to power the Unique New Fashion

Phone, Xelibri 3, the first GSM device with speaker

independent recognition functions

Today, ART Advanced Recognition Technologies, Inc., the world's leading independent producer of speech and handwriting recognition technologies for the mobile world, announced its first cooperation with Xelibri the new fashion accessory division created by Siemens, the mobile-phone maker and electronics industry leader.

According to the announcement, ART's innovative smARTspeak NG has been chosen to power the unique voice-only personal communication device, Xelibri 3, the flagship model of the new Xelibri fashion phone collection. Created as fashion accessories to be sold over new channels, primarily via department stores and fashion retailers, these radically different shaped and wearable devices are part of a bold move to reinvigorate growth in the stalled mobile phone market. At the same time, the highly sophisticated Xelibri 3 is the first GSM mobile phone to support speaker independent recognition functionality.

The new device, with a single key instead of a standard keypad, is purely voice activated by a sophisticated User Interface developed jointly by ART and Xelibri. This UI is based on ART's market proven, all-in-one speech recognition solution, smARTspeak NG, an ultra-advanced technology that combines both speaker independent digit dialing and speaker dependent name dialing and command functions in one bundle. Specially designed for the tight processing-power environment of mobile devices, smARTspeak NG is a perfect fit with the technological demands of the ultra-small Xelibri 3.

To be marketed as fashion items with spring/summer and fall/winter collections, the first Xelibri devices will work in English, Italian, German, Chinese, Spanish and French, with other languages to follow. Each Xelibri collection will consist of four phones and, just as regular fashion accessories, will be available in limited quantities and will have a lifecycle of twelve months -- significantly shorter than existing mobile phones.

"Xelibri products are fashion accessories that make phone calls. At the same time, neither Siemens nor our customers would accept compromise on the highest technological standards in our mobile phones," said George Appling, president of Siemens' new Xelibri division. "So, with no traditional keypad and only one key, ART's smARTspeak NG became of vital importance as a best of breed voice recognition solution for the successful voice activation of the new Xelibri 3 fashion device."

"With mobile phone penetration rates in many markets at 70 to 85 percent, and overall growth stalled, it's a masterstroke of strategic thinking to create a new category for the market place -- especially one that can build demand for multiple phone ownership," said Eran Aharonson, President of ART Advanced Recognition Technologies, Inc. "ART is proud to be associated with this innovative new venture, and we feel sure that this marks just the beginning of a successful long term relationship between Xelibri and ART that will lead to many more high quality results."

About smARTspeak NG

First to successfully combine all Voice Dialing and Control functions for speaker independent and speaker dependent systems, smARTspeak NG's is an all-in-one speech recognition algorithm that allows OEMs to customize required functions onto single mass produced models instead of having to choose between technologies for deployment on new devices.

Combining ART's award-winning technologies, smARTspeak NG offers voice-enabled features such as name dialing, menu navigation and device control, and it includes ART's latest innovation: a Speaker Independent Digit Dialing function with adaptation possibility for heavily accented International English -- or any other language spoken with dialect. This simple 30-second adaptation allows further personalization according to the needs of each user.

About XELIBRI(TM)

Xelibri is the brand that created the Fashion Accessory Phone. We abandoned the whiz-bang technological promises of the future in favor of provocative style and a lot of fun, right now. We decided to shake things up a bit with designs unlike anything you've seen before. We do fashion accessories that look good, feel right and happen to make phone calls. One warning though: be very careful about taking us too seriously. We don't, so there's no reason you should. Xelibri: Making the mobile world a bit less serious, a bit less complicated and a lot more fun. That's So Tomorrow.

About ART Advanced Recognition Technologies, Inc.

Established in 1990, ART is the acknowledged market leader in embedded speech and handwriting recognition software for mass-market mobile devices. After a decade of award winning innovation, today ART develops and markets technologically superior solutions for the control and command of mobile devices by the human voice and natural handwriting. ART's proprietary technologies provide next-generation user interface solutions for cellular handsets, smartphones, mobile communicators, PDAs and handhelds, and automotive systems.

Today, ART's embedded software-only solutions are deployed in dozens of product lines from industry leaders such as Panasonic, LGE, Mitsubishi, NEC, Logitech, GVC, AlphaCell, RAKS, Quanta, Compal, Inventec, Acer, Casio, Maxon, Siemens Automotive, Franklin, PaceBlade and others. ART has strategic and technological partnerships with industry leaders including: Texas Instruments, Motorola Semiconductors, Intel, Qualcomm CDMA Technologies, Agere Systems, Analog Devices, DSP Group, ParthusCeva, Microsoft, UIQ, Symbian, TTPCom, SVOX, Phone-Or, Persay, e-SIM, Pegasus, and others.

Based in the United States with sales offices on the East and West Coasts, ART maintains a wholly owned Israeli subsidiary that conducts research and development. Additional information about ART is available at: http://www.artcomp.com.

smARTspeak NG is a registered trademark of ART, Advanced Recognition Technologies Inc. Names of other companies and products mentioned herein may be the trademarks of their respective owners.