Yep. For example, the name of the third-largest city in Poland is "Łódź", which might look like it's pronounced "lods", but is actually pronounced more like "wootch".
Łódź
Fun fact: I was looking for an e-mail solution for a small company about a decade ago and found Zarafa. It seemed nice and I deployed it happily. Just to find out it only supports the Western European ISO codepage which was hardcoded. I hope they have switched to UTF-8 since then.