Argos Chooses Voxware's VoiceLogistics-R- to Voice-Enable Distribution Centres; Argos Achieves 99.8% Accuracy, Improves Productivity and Reduces Training Time.

LONDON & PRINCETON, N.J. -- Voxware, Inc. (OTC: VOXW), a leading supplier of voice-based solutions for the logistics workforce, announced that Argos, the UK's leading general merchandise retailer, has selected Voxware's flagship product, VoiceLogistics, and is nearing the completion of its first phase deployment involving approximately 200 workers at Argos' Basildon, Mossend, and Wolverhampton facilities. The initial full rollout site, which was a brown field site at Mossend, was the best new technology start-up in Argos' history. Mossend quickly surpassed other sites in pick rates. By October 2005, Argos plans to roll out voice with Voxware further across the network.

"We've achieved a greater than 99.8% accuracy rate in the DCs that have deployed Voxware's VoiceLogistics, as compared to 98.5% for non-voice DCs," stated Eddie Mcgilveray, the WMS Project Manager at Argos. "We've also seen a productivity increase in picking through the changes in process that voice allows, which is impressive, considering that labor standards were already in place. In addition, our training time has decreased significantly as a result of implementing voice."

Argos has established a very strong, trusted brand focused on choice, value and convenience. The company's supply chain strategy helps set Argos apart from its competitors. VoiceLogistics offers greater efficiencies, which enables Argos to compete more effectively on price. In addition, the accuracy that Argos has achieved with VoiceLogistics means that stores are receiving the right products at the right time, which increases customer satisfaction.

"We are very pleased that a market leader like Argos has chosen Voxware as a key enabler of its supply chain, and even more pleased at the quantifiable results they have achieved," said Thomas Drury, Voxware CEO. "The UK is already a very strong market for Voxware's VoiceLogistics, and this commitment by Argos affirms our leadership position and increases our momentum."

VoiceLogistics also enables Argos' users to use their own languages and dialects and the real time data and accuracy that voice offers has decreased replenishment time and the number of replenishments made. In addition, replenishment rates are far better than when Argos was using a paper-based system. Work is currently underway to understand the possibilities for voice in all other aspects of the warehousing operations with a view to maximizing the return on investment and choosing the right technology for the right operations.

"We intend to maximize the use of voice throughout the distribution centre," continued Mcgilveray. "As we deploy more applications, we increase the return on our investment. Thus, we fully intend to make use of idle units with other applications during off-peak times."

About Argos

Argos was founded in 1973 and is now the UK's leading general merchandise retailer. Owned by GUS plc and part of the Argos Retail Group, Argos now has over 550 stores throughout the UK and Republic of Ireland, as well as distribution centres, call centres and its head office in Milton Keynes, employing over 23,000 people in total. Over the next three years, Argos is planning to open 35 new stores a year and approximately 98% of the UK population now live within 10 miles of an Argos store.

About Voxware

Voxware's corporate headquarters are in Princeton, New Jersey, with operating offices in Cambridge, Massachusetts and the United Kingdom. Additional information about Voxware can be obtained on the Internet www.voxware.com.

This news release contains forward-looking statements. Such statements are subject to certain factors that may cause Voxware's plans to differ or results to vary from those expected including the risks associated with Voxware's need to introduce new and enhanced products and services in order to increase market penetration and the risk of obsolescence of its products and services due to technological change; Voxware's need to attract and retain key management and other personnel with experience in providing integrated voice-based solutions for e-logistics, specializing in the supply chain sector; the potential for substantial fluctuations in Voxware's results of operations; competition from others; Voxware's evolving distribution strategy and dependence on its distribution channels; the potential that speech products will not be widely accepted; Voxware's need for additional capital; and a variety of risks set forth from time to time in Voxware's filings with the Securities and Exchange Commission. Voxware undertakes no obligation to publicly release results of any of these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.