For immediate release (Calgary, AB Canada)
May 16, 2000
 

Beijing, PRC (May 16, 2000) - Zi Corporation (NASDAQ: ZICA) (TSE: ZIC) has finalized an exclusive eight-year contract to provide Web based e-commerce training in China. The agreement between Zi’s subsidiary, Oztime.com, and the Ministry of Information Industries (MII) establishes Oztime.com as the exclusive administrator for the MII’s e-commerce training Website. The Website will offer certificate courses in the field of e-commerce.

"Oztime.com established itself as China’s first Web based education service provider with the China Central Radio and Television University contract," says Michael Lobsinger, chairman and chief executive officer, Zi Corporation. "This new contract solidifies Oztime.com as the leader in providing Web based educational training in China."

The Ministry of Information Industries is working quickly to develop an e-commerce strategy, as the country’s volume of e-commerce is expected to grow 500 per cent this year. A recent survey published by the MII’s Computer and Microelectronics Development Research Center and Ccidnet.com indicated that on-line shopping accounted for sales of US$6.7 million in 1999, this figure is expected to rise to US$42.3 million in 2000. In order to reach forecasted growth, industry specialists need to be given support and training.

"Our mandate from the Ministry of Information Industries is to advance e-commerce and related training in China," says Song Ling, director of the Chinese Ministry of Information Industry’s Department of Information Technology Advancement and chair of the China e-commerce Association. "Offering e-commerce training through the MII Website is a key component of our strategy. We also plan to develop and run a national seminar program to promote Internet and e-commerce activity and train people on how to use the new technologies."

Under the agreement Oztime.com will:

• build and operate the e-commerce Association’s training site,
• provide the administrative structure for the site,
• exclusively develop or obtain required courses for the Website; and
• contribute to the development of a national seminar program on Internet and e-commerce activity.

All courses will be offered on a user pay basis. Pricing on the courses will range from RMB500 - 1000, or US$60 - 125. The MII will promote the e-commerce training courses and seminar program to the government, business community and the general public.

The MII is one of several ministries who are mandated to retrain the many Chinese that have become under or un-employed as a result of the restructuring of Chinese state-owned enterprises. The sheer size of China, has been a barrier to the country’s aspirations of improving access and standardization of education and training across the nation. The Internet is a promising tool to assist in re-education efforts. Internet penetration is doubling every six months in China as reported by the China Internet Network Information Center (CNNIC). There were 8.9 million subscribers at the end of 1999, more than double the number reported in June of 1999. Almost 40 per cent of respondents to the CNNIC survey indicated that online education is one of the most promising future offerings.

China’s MII formulates national strategies, policies, plans, regulations and technical standards for the information industry in addition to promoting the development of electronics manufacturing, telecommunications and the software industry. They also oversee public information and broadcasting networks and supervise telecom and information service markets.

The China e-commerce Association is administered by the MII and has been directed to advance e-commerce and related training throughout China. Its members include a number of key Chinese ministries including the MII, State Economic and Trade Commission, Ministry of Science and Technology and Ministry of Foreign Trade and Economic Cooperation.

Zi Corporation is a leading provider of embedded software technology and Web enabled educational products and services. The company’s core product, eZiText^TM connects people to short messaging, e-mail, e-commerce, Web browsing, and similar applications in almost any written language. Zi’s wholly owned subsidiary, Oztime.com, is China’s first Web enabled education service provider. Zi supports its customers and strategic partners from offices in Calgary, Beijing, Hong Kong, San Francisco, Shenzhen and Stockholm. A publicly traded company, Zi Corporation is listed on the NASDAQ Stock Market (ZICA) and the Toronto Stock Exchange (ZIC).

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The information in this press release is based on Zi Corporation’s current expectation and assumptions, and is subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks include, among others, general business and economic conditions and competitive actions as well as the risks and uncertainties referred to in Zi Corporation’s 20-F for the most recent calendar year.

For further information, please contact: 

Karen Attwell 
Manager, Investor/Media Relations 
Phone: (403) 233-8875 
Email: investor@zicorp.com
Web site: http://www.zicorp.com/