News release |
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Zi advances market strategy with VoIP contract
Calgary, AB (August 1, 2001) – Zi Corporation (NASDAQ: ZICA) (TSE: ZIC) has secured its first significant contract to provide a full VoIP solution including customized design and technical production support to Cidco Communications Corporation (www.cidcocomm.com), a privately held telephony equipment company. Under the terms of this agreement, the volume of IP phones is expected to be in the tens of thousands with deliveries beginning later this year and reaching full capacity in 2002.
"This is an important step forward for Zi as we begin to develop a new revenue source and realize the investment in Zi Services, acquired a year ago," says Gary Kovacs, president, Zi Corporation. "Zi is committed to working with key strategic players such as Cidco Communications to capitalize on the great potential in the emerging VoIP market."
This agreement positions both Zi Corporation and Cidco Communications to capture the overall growth in the VoIP market, which Allied Business Intelligence estimates to reach over $11 billion by 2006. Cidco Communications, a recognized supplier, benefits from long standing relationships with all major ILECs (Incumbent Local Exchange Carriers) in the United States. As major ILECs roll-out VoIP technology, the demand for IP phones will continue to increase.
"As a leading telephony equipment supplier, we are moving aggressively to provide a range of VoIP solutions to our customers," said Ian Laing, CEO Cidco Communications. "With Zi Corporation, we are establishing a firm foundation for leadership in the VoIP industry, by combining Cidco Communications’ established distribution network, our own products and development expertise and Zi’s five years of experience in VoIP development. The resulting line of VoIP products will allow businesses to migrate from traditional circuit-switched offerings to less expensive, more efficient and feature-rich IP-based telephone systems."
Zi Corporation and Cidco Communications are committed to supporting all dominant VoIP industry standards and protocols to ensure interoperability with all leading infrastructure vendors.
For more information about Zi’s IP phone turn-key solutions visit: www.zicorp.com or contact ziservices@zicorp.com.
Cidco Communications a (www.cidcocomm.com) is a privately held telephony equipment company. Through its alliances with the world’s leading telephone companies, Cidco Communications develops and markets network feature telephones and call ID appliances. Cidco Communications products are sold worldwide through major telephone companies, retail outlets and direct to the customer. Today, Cidco Communications has more than 29 million devices installed in the United States.
Zi Corporation is a market-driven technology company delivering intelligent interface solutions to enhance the user experience of wireless and consumer technologies. The company’s core technology product, eZiText™ connects people to short messaging, e-mail, e-commerce, Web browsing and similar applications in almost any written language. Zi Services provides market-leading engineering design in Bluetooth, VoIP and man-machine interface. Zi supports its strategic partners from offices in Calgary, Beijing, Hong Kong, San Francisco, Shenzhen, Stockholm and Tokyo. A publicly traded company, Zi Corporation is listed on the NASDAQ National Market (ZICA) and the Toronto Stock Exchange (ZIC).
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For more information:
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Dale Kearns Zi Corporation Chief Financial Officer Phone: 403 233 8875 investor@zicorp.com www.zicorp.com |
Mark Jensen Cidco Communications Vice President Business Development Phone: 408 782 8207 Mark.jensen@cidcocomm.com www.cidcocomm.com |