FBReader uses the TeX approach:
Quote:
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Automatic hyphenations. Liang's algorithm is used. The same algorithm is used in TeX, and TeX hyphenation patterns are used in FBReader. Patterns for Czech, English, Esperanto, Finnish, French, German, Italian, Norwegian, Portuguese, Russian, Spanish, Swedish and Ukrainian are included in the current version.
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It is a bit conservative about hyphenation, but you might try FBReader instead of CoolReader.