Rosetta Stone 2011 Annual Report Download - page 13

Table of Contents
is included in Version 3 and Version 4, is available for all of our languages on those versions and runs on all widely available operating systems and on local
and online applications. Our speech recognition models include languages traditionally not supported by general-purpose speech recognition software, such as
Irish.
We have developed proprietary algorithms we call Adaptive Recall, which are designed to enhance the learner's experience by reintroducing content at
longer and longer intervals in order to improve long-term retention. Adaptive Recall, available in Version 3 and Version 4, is designed to be efficient with a
learner's time, bringing material back in the program less and less frequently as the learner remembers over extended periods of time.
We have developed a proprietary student management system, which is designed to allow teachers and administrators to configure their own lesson plans
using our content and exercises and to review reports for evaluation of student progress.
We have developed an intuitive user interface that assists in the learner's transition from listening comprehension to speaking, making language skill
development an integrated experience.
We have also created proprietary content development tools that allow our curriculum specialists to write, edit, manage and publish our course materials.
These tools allow authors, translators, voicers, photographers and editors to work efficiently and cooperatively across multiple locations.
Content and Curriculum
The foundation of Dynamic Immersion is our proprietary content, consisting of a total of more than 25,000 individual photographic images and more
than 400,000 professionally recorded sound files. Each Version 3 and Version 4 language contains approximately 10,000 individual photographic images and
15,000 professionally recorded sound files. We believe these photographic images and recorded sound files are a competitive strength, as we have created
many of the pictures and all of the sound files ourselves. We believe that our images and their juxtaposition convey a universal meaning, which makes it
possible for us to broadly deploy the same images across multiple languages. In addition, we have developed a sophisticated method for sequencing the
images, which is designed to build a rich curriculum that incrementally teaches the user the most important and relevant language skills necessary to achieve
fluency. We believe that our sequence of images is as effective for someone learning Arabic or Mandarin Chinese as it is for someone learning Spanish or
English. To supplement our core content, we incorporate specific nuances for each language, such as dual forms for parts of speech in Arabic. Our ability to
tailor our content also enables us to develop customized versions of our language-learning solutions to address the specific needs of various industries. In the
future, we may develop customized versions for other industries, such as healthcare, business, real estate and retail.
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