Announcement to declare closure of 3 branch offices of NTS India Greetings: This announcement is prepared to be shared with office-based employees,

home-based employees, and home-based independent transcription professionals of Nuance Transcription Services India Private Limited. As you know, we currently have 8 offices across South India as follows: State Karnataka Karnataka Karnataka Karnataka Tamil Nadu Tamil Nadu Andhra Pradesh Andhra Pradesh City Bangalore Bangalore Bangalore Bangalore Chennai Coimbatore Hyderabad Hyderabad Branch location Koramangala Basavanagudi/Bull Temple Road Rajajinagar RT Nagar/Ganganagar Nelson Manickam Road RS Puram Raj Bhavan Road Secunderabad

As you also know, we opened up home-based employment option for MT professionals across India w.e.f. 1-Apr-2011. We have received excellent response. This was an expected response level given the huge advantages of working from home + traffic risk + increasing fuel cost + pollution + people not liking canteen food, etc. Our home-based manpower has increased because of which we have not been able to use the existing offices efficiently. Ideally, a workstation (a computer + a chair) should be used by 2.3 people in 24 hours. This means 1 person in first shift, 1 person in second shift, and 1 person in night shift; since less people work in night shift, we expect 1 seat to be used out of every 3 seats available. We call this as workstation utilization ratio. Ideally, we should achieve a workstation utilization ratio of 2.3. Currently, workstation utilization ratio is just 0.6. As you can see, this is a huge waste of office resources. Hence, we have decided to cut down on the rental space that we have hired. We have decided to close down the following offices as soon as the owners of these office spaces allow us to do so: State Karnataka Karnataka Andhra Pradesh City Bangalore Bangalore Hyderabad Branch location Basavanagudi/Bull Temple Road RT Nagar/Ganganagar Raj Bhavan Road

All office-based employees from these offices will have to shift to one of the following offices: State Karnataka City Bangalore Branch location Koramangala Page 1 of 3

Karnataka Tamil Nadu Tamil Nadu Andhra Pradesh

Bangalore Chennai Coimbatore Hyderabad

Rajajinagar Nelson Manickam Road RS Puram Secunderabad

Possible questions that might arise due to this decision: 1. Is NTS India suffering losses because of which this decision is made? A: No, we are doing extremely well. The # of lines processed by NTS India in June 2011 was the highest line count ever done by this company and probably the highest in this country by any MT company. Our profit levels are pretty good. As you know, Nuance recently even acquired Webmedx. Nuance is very keen in increasing its share in global MT market. We are in the right company, and this decision is only an operational decision to keep the companys financial records healthy. We do not want to keep the workstations un-utilized, which is waste of money. We have huge business lined up to go live in the coming months, which is because of extremely aggressive sales team of Nuance and also the unique advantage of us owning Escription software. 2. If we are making good profits and doing highest line count, then why close offices? A: There is no point in paying rent to the landlords when we are not using the office spaces efficiently. 3. Should we expect more offices to be closed by NTS India? A: We intend to maintain an office in each of the cities that we currently are operating from. Hence, we do not have intentions to shut down our operations in any of the cities that we operate from. However, we expect the MT industry to move more towards home-based work like how it has been in USA. 4. I am an office-based employee. Should I plan to buy a computer since I might be asked to work from home by the company? A: We do not have intentions to force you to work from home. You will have an option to work from companys office. 5. I am a support staff working for one of the offices, which is planned to be shut down. What will happen to me? A: You will be automatically transferred to one of the retained branch offices. Your employment will continue as per your employment agreements terms and conditions. 6. By what dates do we intend to close the above 3 offices?

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A: We will need to make arrangements to shift telephones, computers, Nortel phones, etc., based on which the local Unit Head will take the decision and announce the date. Miscellaneous facts: 1. We are having problem arranging for food for each of the offices because the # of pax required for each office is so less that the caterers are not willing to supply food to us. 2. Bangalore RT Nagar branch office owner was very cranky that he did not want to renew the contract with us. 3. Rentals are increasing year by year, burdening the operational cost.

Should you need any further clarifications, please write to raju@focusinf.com (internal e-mail ID for OBEs and HBEs) or tn.raju@nuance.com (external e-mail ID for ITPs).

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