Dictaphone Recognized by Leading Research Firm in Annual Contact Center Quality Management Report.

STRATFORD, Conn. -- Dictaphone Corporation's Communications Recording Systems (CRS(TM)) group, a leading provider of recording and monitoring systems and Workforce Relationship Management(TM) (WRM) solutions, today announced that it has been recognized in Gartner, Inc.'s, (NYSE: IT and ITB), MarketScope: Contact Center Quality Management 2004 Update(1), an annual report on call recording and quality management products for contact centers. Gartner is one of the nation's leading providers of research and analysis in the global information technology industry.

Gartner's 2004 MarketScope evaluates the current position of key vendors using five important criteria including: financial viability and market commitment; product and market innovation; marketing momentum; overall project costs and benefits and references.

"Through our expanded suite of contact center offerings, Dictaphone continues to gain momentum and build client loyalty which will have a positive impact on our market share moving forward," said John Kaiser, vice president of global marketing for Dictaphone's CRS group.

Dictaphone has received several industry awards and recognition in 2004 for its ContactPoint WRM and Freedom(R) solutions. This comes after a banner year in 2003, where Dictaphone sold and installed over 8,000 seats of contact center recording and quality solutions.

About Gartner MarketScope

The MarketScope is copyrighted 2004 by Gartner, Inc. and is reused with permission. The MarketScope is an evaluation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the MarketScope, and does not advise technology users to select only those vendors with the highest rating. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

(1) Source: Gartner, Inc. "MarketScope: Contact Center Quality Management, 2004 Update" 17 September 2004. J. Davies.

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 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. The centerpiece of ContactPoint is a competency model that enables the creation of job profiles that outline the skills, knowledge and abilities that agents need to be successful. Once identified, these skills, knowledge and abilities can then be systematically applied to the contact center's hiring, training, and assessment programs using ContactPoint, to help 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.

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 2004 Dictaphone Corporation, all rights reserved.