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KURZWEIL REACHES AGREEMENT ON LICENSING OF PATENTS

 WALTHAM, Mass., Sept. 24 /PRNewswire/ -- Kurzweil Applied Intelligence, Inc. (KURZ) today announced two agreements to license certain patents and to settle a patent infringement suit with Dragon Systems, Inc., Newton, Mass.
 As part of the accords, the two firms agreed to cross license all future patents filed by either company through the end of 1997.
 Under the first agreement, Kurzweil and Dragon agreed to cross license seven patents of each firm, and to settle a patent infringement suit filed by Dragon and a counterclaim filed by Kurzweil in 1992. No financial remuneration was involved in the settlement of the suit.
 Under the second agreement, Kurzweil obtained a license from Dragon for five additional patents related to continuous speech and other aspects of speech recognition technology. To obtain these patents, Kurzweil will make annual payments to Dragon starting at $625,000, and increasing every year by 13 percent. Kurzweil will make payments through 1998. Kurzweil has the option to continue its licenses by continuing its payments through the year 2005, at which time its licenses are fully paid.
 Bernard F. Bradstreet, president and co-CEO of Kurzweil, said the agreement will not have material impact on near term financial results, and over the longer term is expected to lead to improved performance as a result of development and legal expense savings.
 Raymond C. Kurzweil, chairman and co-CEO of Kurzweil, called the agreements "strategically valuable arrangements for our company. These agreements eliminate a potential impediment to our continuing efforts to aggressively pursue the vast potential market for horizontal applications of large vocabulary speech recognition."
 He emphasized that major portions of the company's technology, particularly in the area of the key algorithms underlying Kurweil's speech recognition systems, are protected though trade secrets and are not being licensed to Dragon in these agreements.
 "These agreements give us the benefit of expanded research and development for a relatively small investment," said Bradstreet. "And it can strengthen our position in the promising discussions we are having with large potential partners and customers."
 Kurzweil, headquartered in Waltham, Mass., was founded in 1982. The company develops, markets and supports automated speech recognition systems used to create documents and interact with computers by voice. Its VoiceMED(TM) family of products are turnkey, voice-enabled medical reporting systems, and Kurzweil VOICE(TM) is a voice-enabled personal computing and word processing system.
 -0- 9/24/93
 /CONTACT: Bernard F. Bradstreet, president and co-CEO of Kurzweil Applied Intelligence, Inc., 617-893-5151/


CO: Kurzweil Applied Intelligence, Inc.; Dragon Systems, Inc. ST: Massachusetts IN: CPR SU: LIC

TM -- NY084 -- 5637 09/24/93 19:01 EDT
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Publication:PR Newswire
Date:Sep 24, 1993
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