RNS No 6570e
VOCALIS GROUP PLC
22nd July 1998


 VOCALIS ANNOUNCES FURTHER SUCCESS FOR SPEECHTEL IN MALAYSIA

Vocalis Group plc, the Cambridge UK based speech recognition
telephony  company  announces  today  a  further  order  for
SPEECHtel., its intelligent network peripheral platform  and
products.   Combined  with Ericssons Network  IntelligenceT,
SPEECHtel  already  provides an automated  public  directory
enquiries  and assistance service for Telekom Malaysia  that
has been operational since 1996.

The  phenomenal success of the Malaysia service  means  that
the  original  capacity provided has already been  exceeded.
Further  capacity has been ordered from Ericsson by  Telekom
Malaysia,  with a contract value to Vocalis of GBP  450,000.
Vocalis will also install the latest version of SpeechWareT,
its   world  leading  speech  recognition  technology  which
enables  natural interactions between the customer  and  the
service using the spoken user interface, Vocalis SUIT.

Vocalis  has  OEM  agreements in place with  the  two  major
network  divisions of Ericsson - Infocom Systems  for  fixed
wire  and  Radio Systems for mobile networks -  under  which
Vocalis  continues to provide Ericsson worldwide,  including
all of its divisions and affiliates, with speech recognition
solutions.   Through these agreements, proven  products  and
applications  are  delivered now  to  world  leading  public
telephone network operators.

"This  order for Telekom Malaysia, a major network operator,
is  another  endorsement  of Vocalis'  strategy  to  exploit
intelligent   network  opportunities  in  partnership   with
Ericsson."  said  Charles Halle, CEO of Vocalis.   He  added
"The  initial  installation  with  Telekom  Malaysia  is  an
unqualified success and this additional order confirms their
high  level  of satisfaction with our speech driven  network
based services."

Using  SPEECHtel  platforms running  SpeechWare  recognition
technology, Vocalis provides world leading Interactive Voice
Response  capability within intelligent  network  solutions.
This  emphasis  on placing speech recognition capability  in
the  network provides telephone network operators  with  the
ability  to  maintain  customer loyalty  and  reduce  churn,
independent  of  the  telephone  handsets  chosen   by   the
customers.  It also provides the opportunity to integrate  a
range   of   applications  and  provide  tailored   customer
packages.

Jonathan  Hart, Sales Director at Vocalis commented,  "After
an intense period of experimentation and market analysis, we
are   confident  that  the  foreseeable  future  for   truly
intelligent  voice  based  telephony  services  lies  firmly
within    networks.   Today's   demand   for   sophisticated
applications  using  speech recognition  means  that  server
based  computing power is essential.  Server  based  systems
allow   our   telephony  applications  to   perform   speech
recognition that offers exceptional levels of accuracy while
maintaining natural conversational dialogues."

Reduced processing capability within cellular telephones and
other  handheld devices can be used successfully for limited
tasks - such as recognising words like "yes, no, repeat"  or
a  handful  of  personal number entries when spoken  by  one
regular  user.   However, the massive  amount  of  computing
power that can be devoted to speech recognition in a network
server based solution enables truly natural transactions  to
take  place in applications available to the public such  as
directory  assistance, collect call  and  person  to  person
calling.  Coupled  with the ability to rapidly  develop  and
make changes to established operational services, Vocalis is
confident  that  server based power clearly  points  to  the
future  of  truly intelligent speech driven  services  being
implemented within the heart of intelligent networks,  using
solutions such as SPEECHtel.

Network  Intelligence is a trademark of  Telefonaktiebolaget
LM Ericsson

SPEECHtel, SpeechWare and SUI are trademarks of Vocalis Ltd

About Vocalis

Vocalis   Group  plc  builds  a  range  of  voice  activated
telephony  products for telephone network service  providers
and  corporate clients worldwide. Vocalis has a  proprietary
speech   recognition   technology,  SpeechWare,   and   user
interface, SUIT, which helps businesses and people  stay  in
touch, naturally.

Products  include  SPEECHtel, a family  of  voice  activated
service  applications, such as voice dialling and  directory
assistance,  for  fixed  and  mobile  telephone   operators.
Vocalis'  products  also include the  Business  Applications
Platform,  which offers customised solutions  for  corporate
businesses  and Operetta, a voice activated auto  attendant.
Vocalis  was  formed  in 1993 and has been  trading  on  the
London Stock Exchange since July 1996.

The Vocalis Website is at http://www.vocalis.com.

Vocalis,  the Vocalis logo, SPEECHtel, SpeechWare,  SUI  and
Operetta are trademarks of Vocalis Ltd.

For further information: -

Tom Moriarty
Tavistock Communications Limited
Tel:  0171 600 2288

Jonathan Hart/ Philippa Buttle
Vocalis Group plc
Tel: 01223 846177
Fax: 01223 846178
Email: philippa.buttle@vocalis.com
enquiries@vocalis.com

END

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