Zi CORPORATION
NEWS RELEASE

For immediate release (Calgary, AB Canada)
May 13, 1999

Zi Reports Improvement in Financial Results

Zi Corporation (TSE: ZIC; NASDAQ: ZICA) ("Zi") reports that for the year ended December 31, 1998, the loss from continuing operations is $2.3 million compared with an operating loss of $12.6 million in 1997. As such, the loss in 1998 was 82% lower than the previous year. The contributors to this significant reduction were a 24% increase in revenues which totaled $1.6 million and a 71% decrease in operating costs and expenses which amounted to $4.1 million. Revenues were earned primarily from license fees relating to the Zi Input technology. The company’s entire financial statements and annual report can be found on the Web at http://www.zicorp.com.

Zi Corporation’s goal is to make modern electronic technology more accessible to people in a way that is consistent with their language and culture. By connecting technology to language, Zi Corporation brings smart text input to the mass market for devices such as mobile phones, TV set top boxes, computers and Internet appliances.

NEITHER THE TORONTO STOCK EXCHANGE NOR NASDAQ HAVE APPROVED OR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Zi Corporation  
Carol Kim  
Manager, Investor/Media Relations  
403.233.8875  
Web site: http://www.zicorp.com/