This paper presents some basic criteria for conception of a concatenative text-to-speech synthesizer in Serbian language. The paper describes the prosody generator which was used and reflects upon several peculiarities of Serbian language which led to its adoption. Within the paper, the results of an experiment showing the influence of natural-sounding prosody on human speech recognition are discussed. The paper also describes criteria for on-line selection of appropriate segments from a large speech corpus, as well as criteria for off-line preparations of the speech database for synthesis.