Dictaphone's ContactPoint Recruiter Named 'Product of the Year'; Customer Inter@ction Solutions Magazine Honors Dictaphone for Second Consecutive Year.

STRATFORD, Conn. -- Dictaphone Corporation's Communications Recording Systems (CRS) group, a leading provider of recording, monitoring, and Workforce Relationship Management(TM) (WRM) solutions, announced today that it has won a Product of The Year award from Technology Marketing Corporation (TMC(R))'s Customer Inter@ction Solutions(R) magazine. Dictaphone received the award for its ContactPoint(TM) Recruiter module, a recent addition to the ContactPoint WRM suite. This marks the second consecutive year that Dictaphone's ContactPoint solution was recognized by the magazine as Product of The Year.

"Winning this prestigious award two years in a row is a tremendous accomplishment," said John Kaiser, vice president of global marketing for Dictaphone's CRS group. "Clearly, contact centers face tremendous challenges when it comes to recruiting and retaining qualified agents, and ContactPoint Recruiter uniquely addresses these problems."

One of three modules within Dictaphone's ContactPoint suite, Recruiter is a competency-based hiring management software application designed to help contact centers analyze, identify, and hire the most qualified agents, while simultaneously streamlining the recruiting process and reducing costly turnover. Using ContactPoint Recruiter, managers can create job profiles for specific agent positions within the contact center. Each profile is then linked to specific competencies (skills, knowledge and abilities) that an agent would need to perform the job successfully. This competency model is created and captured within ContactPoint, becoming the focal point for the contact center's recruiting initiatives.

The hiring organization uses the ContactPoint Recruiter software to create and administer competency-based interview questionnaires to pre-screen applicants. Questionnaires can be tailored to different stages of the interview process, and administered to applicants through a variety of means (online, via kiosk, manually, or other methods). Applicants' responses are directly captured by or imported into ContactPoint, and then analyzed to identify the best candidates for each position. A personal interview is recommended only when there is a high likelihood that an applicant is qualified for the job. Recruiter also maintains baseline profiles for each new hire, so that any competency gaps can be immediately identified and addressed through training. "Contact centers often interview dozens of candidates just to hire one qualified agent. In addition, when an agent leaves, it can cost thousands of dollars to hire and train a replacement," said Customer Inter@ctions Solutions Group Editor-in-Chief, Rich Tehrani. "Dictaphone's ContactPoint Recruiter helps contact centers eliminate costly hiring mistakes and improve ROI. That's why we have recognized Dictaphone with our 2004 Product of The Year Award."

Since 1998, Customer Inter@ctions Solutions' Product of The Year Awards have been presented to companies whose products represent innovative excellence in the CRM, call center and teleservices industries.

About Dictaphone Corporation's Communications Recording Systems (CRS)(TM) Group

With thousands of installed customers worldwide, Dictaphone Corporation's Communications Recording Systems (CRS(TM)) Group is a leading provider of recording and monitoring systems for contact centers and Workforce Relationship Management(TM) solutions designed to optimize agent performance. Dictaphone CRS is a division of the Stratford, Connecticut-based Dictaphone Corporation.

Dictaphone's ContactPoint Workforce Relationship Management solution provides a fully-integrated solution for optimizing agent performance, focusing on three major functions: recruiting, training and assessments. ContactPoint helps optimize agent performance by helping contact centers hire and retain the best agents, assess them fairly and consistently, and empower them with the right training and rewards. All three modules within the ContactPoint software suite - Recruiter, Trainer, and Assessor - are linked together through a common competency model that outlines the skills, knowledge and abilities that agents need to be successful. Once identified, this competency model can be systematically applied to the contact center's hiring, training, and assessment programs using ContactPoint, to increase agent effectiveness and improve customer service.

The ContactPoint solution was designed to work in combination with Dictaphone's Freedom(R) Enterprise system. Freedom Enterprise records customer/agent interactions, using standard voice recording or Voice over Internet Protocol (VoIP) recording. The agent's desktop screen activity can also be captured. Other features supported by ContactPoint and Freedom Enterprise include: remote playback via Web access; Computer Telephony Integration (CTI) for data capture, service observe, and advanced analytics; and integration to legacy HR systems to capture recruitment, assessment and training data. For more information, call 1-800-886-4908, or visit www.dictaphone.com.

About TMC(R)

Celebrating more than 30 years as a leading publisher, Technology Marketing Corporation (TMC(R)) publishes Customer Inter@ction Solutions(R) and INTERNET TELEPHONY(R) magazines, Web portal TMCnet.com, and the online publications SIP(TM), Speech-World(TM), VoIP Developer(TM), WiFI Telephony(TM), WiMAX(TM), Alternative Power(TM) and BiometriTech(TM). TMC(R) is also the first publisher to test new products in its own on-site laboratories, TMC(R) Labs. TMC(R) produces INTERNET TELEPHONY(R) Conference & EXPO, VoIP Developer Conference(TM) and Global Call Center Outsourcing Summit(TM). TMC offers live and online certification programs through TMC University. TMCnet.com publishes more than 14 online newsletters. Visit www.tmcnet.com for details.

Safe Harbor Statement

This press release includes forward-looking statements within the meaning of Section 21(e) of the Securities Exchange Act of 1934. These statements are based on Dictaphone Corporation's current expectations and estimates as to prospective events and circumstances that may or may not be in Dictaphone Corporation's control and as to which there can be no firm assurances given.

These forward-looking statements are subject to risks and uncertainties and there can be no assurance that any of these forward-looking statements may prove to be correct and actual results may differ materially. These risks and uncertainties include, but are not limited to, economic conditions in the U.S. and abroad, the ability to complete and deliver products and services within currently estimated time frames and budgets, the ability to effectively manage diverse and geographically dispersed operations, difficulties with integrating product plans, schedules and resources, potential that the information and estimates used to predict future performance were not accurate, market acceptance of Dictaphone Corporation's products, competitive products, pricing pressures, and other risks. Dictaphone Corporation disclaims any intent or obligation to update these forward-looking statements.

Dictaphone(R), Freedom(R), Communication Recording Systems(TM), CRS(TM), ContactPoint(TM) and Workforce Relationship Management(TM) are trademarks or registered trademarks owned by Dictaphone Corporation. Other products or marks referenced herein may be trademarks of their respective owners. Dictaphone Corporation's Freedom(R) recording system is the subject of U.S. and foreign patents and patent applications.

(C) Copyright 2005 Dictaphone Corporation, all rights reserved.