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Ditech Network’s PhoneTag Auto Ranked Highest in a Study of Automated Voicemail Transcription

Ditech Networks’ (NASDAQ:DITC) PhoneTag Auto achieved the highest accuracy in automated voicemail transcription, based upon a study released today by TMA Associates, which was partly supported by Ditech. With 86% word accuracy, the independently-scored study found that PhoneTag Auto is the most accurate, 100% automated voicemail transcription solution among those surveyed. Microsoft and Google’s voicemail transcription solutions ranked second and third, respectively. A fourth company in the study, Yap, achieved 78% accuracy.

Renowned speech recognition expert Bill Meisel, head of TMA Associates and editor of Speech Strategy News, ran a study of the accuracy of fully automated voicemail transcription services. Meisel used an objective test methodology to establish his results to prevent subjective opinion from impacting the findings. Details of the study and the results can be found at www.tmaa.com/voicemailstudy.html

In terms of establishing and progressing accuracy, the voicemail to text application is no different from other interactive voice response (IVR) applications. With IVR applications, each percentage point of accuracy can have a dramatic impact on usability and perceived quality. For example, in automated billing and airline booking IVR solutions accuracy is very important, and companies can spend years to improve their solutions by a percentage point or two.

Specific accuracy numbers are included in the report. “We used the same 500 test voicemail messages, with a variety of different speakers, for each service to measure accuracy,” said Bill Meisel. “The method of measuring accuracy gives somewhat pessimistic numbers relative to what a user might perceive, as discussed in the report.”

“It’s clear that voicemail-to-text is a service customers want,” Meisel continued. “In the long term, fully automated transcription will be necessary for both cost and perceived privacy issues.”

“We spent many years and a lot of dedicated effort to enable PhoneTag Auto to exceed 85% accuracy,” said Jamie Siminoff, Chief Strategy Officer of Ditech. “It was always my belief that anything below 85% accuracy was not commercially viable. In fact, we did not sell our automated system until we were able to reach the 85% threshold. While we are extremely excited to have reached 86% accuracy, we are now working tirelessly towards the goal of 90% accuracy.” Mr. Siminoff joined Ditech Networks in September 2009 from SimulScribe, the company that developed PhoneTag Auto and where Mr. Siminoff was instrumental in developing the PhoneTag offering.

More information on Ditech Networks’ PhoneTag solution can be found at: http://www.ditechnetworks.com/products/phonetag.html

About Ditech Networks, Inc.

Ditech Networks is revolutionizing modern communications with advanced voice processing solutions that perform tasks spanning from voice-enabled Web 2.0 and unified communications services to network and speech enhancement. Ditech Networks believes in the power and simplicity of human speech; its technology is being designed to deliver compelling voice capabilities to new communications methods like social networking and text messaging, allowing consumers to use voice in ways that make sense in today's Web 2.0-savvy world.

Leveraging over 15 years of deployments with communications providers around the world, Ditech Networks offers unique, effective products and services that put the subscriber's experience first, assisting carriers with revenue generation, service differentiation, network expansion and call capacity. Ditech Networks' customers include Verizon, Sprint/Nextel, Orascom Telecom, AT&T, China Unicom, Global Crossing and West Corporation. Ditech Networks is headquartered in Mountain View, California. For more information, visit www.ditechnetworks.com.

Forward Looking Statement

This press release contains statements regarding Ditech Networks' expectations and capabilities of the benefits from using PhoneTag. Actual performance of PhoneTag could differ materially as a result of unanticipated factors and events, including that Ditech Networks could face unforeseen difficulties in integrating PhoneTag with various conference bridge and voicemail systems. Further risks inherent in Ditech Networks' business are detailed in the section entitled "Future Growth and Operating Results Subject to Risk" in Ditech Networks' Quarterly on Form 10-Q for the quarter ended October 31, 2009 (filed December 11, 2009 with the Securities and Exchange Commission).

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