Wizzard Expects Profitability in Fourth Quarter 2003 and a Cash Flow Positive
Third Quarter
June 05, 2003 09:22:00 AM ET

     PITTSBURGH--(BUSINESS WIRE)--June 5, 2003--Wizzard Software (WIZD)
announced today that it expects to achieve profitability by the fourth quarter
of this year and expects a cash flow positive third quarter. CEO Chris Spencer
stated, "We are extremely excited about our business model and how management
has positioned the Company within the speech industry. In the last year we
have expanded our relationship with IBM, entered into a new agreement with
AT&T and have seen the demand for our Tools & Engine products increase
significantly." Mr. Spencer continued, "While the war and other current events
happening around the world did slow our Consulting Division's efforts in the
first part of this year, we are seeing a resurgence in demand for our speech
consulting, custom speech development, quality assurance testing and developer
support services as we enter the final month of the second quarter. It takes
time to close the larger consulting deals so, while we do expect to have a
strong third quarter, we are predicting for the first time in Company history
a profitable fourth quarter."

     Wizzard offers its customers, businesses and software developers,
programming tools and distributable speech engines from Wizzard, Microsoft,
IBM and AT&T. The Company distributes thousands of its programming platforms
every month with recent increases in demand for both Text-To-Speech and Speech
Recognition SDK's. By offering a "one-stop-shop" for its customers, Wizzard
attracts a large, worldwide following of businesses looking to add speech to
their internal and commercial products and services. In addition to speech
programming tools and distributable engines, the Company offers its customers
many speech related services to assist in their adoption of speech technology.
Current consulting projects include work for the U.S. Postal Service, IBM, and
several major banks.

     "One of Wizzard's most significant competitive advantages is the fact
that we are out here, on the front lines, dealing with the early adopters of
speech technology in businesses looking for solutions to productivity
problems. With Microsoft, IBM and AT&T sending their customers to Wizzard for
our programming tools, support, consulting services and distributable speech
engines, we are able to identify trends sooner and react to demand faster,
which enables us to capitalize on the growth in speech based computing," says
Alan Costilo, General Manager, Wizzard's Tools & Engines Division. "In a short
period of time we have seen two upward trends in demand from banks and credit
unions for Text-To-Speech for their ATM's as well as demand for the ability to
translate spoken audio files into text for the medical, legal and
communications industries. At this time we have provided products and services
to banks which represent over 40% of the 'Talking ATM' market. We expect the
adoption of 'Talking ATMs' to grow at more than 10% per year and expect
Wizzard to expand on its 40% penetration in this growing market for speech
products and services. This is just one area where are products and services
are in demand and we expect several more in the year to come."

     "In the last year Wizzard has reduced its debt and expanded our workforce
to handle the increase in demand for our products and services due to the
ongoing IBM relationship, the newly announced AT&T agreement and our
Consulting Division's efforts," says Gordon Berry, Wizzard CFO. "As management
continues to keep expenses low while increasing revenues (quarter over related
quarter) for the last three consecutive quarters, we are poised to begin
making money for our shareholders."

About Wizzard Software

     Founded in 1996, Wizzard Software has become a leader in the speech
technology application development market. Wizzard's relationship with
software and communications companies such as Microsoft(R), AT&T(R) and IBM(R)
provide opportunities to develop new markets for speech enabled computing.
Wizzard architects solutions to business problems using its expertise in
consulting, development tools and building applications for the Desktop and
Internet. Wizzard has achieved global recognition because of its expertise
with voice communication whether it is via PC or telephone. Wizzard's
successes have lead to expanding opportunities in both the government and
commercial sectors. More information can be found in Wizzard's Investor's
Corner at www.wizzardsoftware.com.

Legal Notice

     Legal Notice Regarding Forward-Looking Statements: "Forward-looking
Statements" as defined in the Private Securities Litigation Reform Act of 1995
may be included in this news release. These statements relate to future events
or our future financial performance. These statements are only predictions and
may differ materially from actual future results or events. We disclaim any
intention or obligation to revise any forward-looking statements whether as a
result of new information, future developments or otherwise. There are
important risk factors that could cause actual results to differ from those
contained in forward-looking statements, including, but not limited to risks
associated with changes in general economic and business conditions, actions
of our competitors, the extent to which we are able to develop new services
and markets for our services, the time and expense involved in such
development activities, the level of demand and market acceptance of our
services, changes in our business strategies and acts of terror against the
United States.

Contact Information:
Arthur Douglas and Associates
Art Batson, 407/478-1120 (Investor Relations)
or
MPH PR
Mike Hiles, 310/234-3200 (Media Relations)
mhiles@mphpr.com