News release

Zi Corporation



SK Teletech to export eZiText™ enabled devices to meet demands of growing CDMA market


Calgary, AB (August 16, 2001) - Zi Corporation (NASDAQ: ZICA) (TSE: ZIC) continues its role as a dominant text input provider to Korean handset manufacturers by signing a licensing and royalty agreement with SK Teletech. SK Teletech is a major provider of handsets to SK Telecom, the largest CDMA (code division multiple access) service provider in the world.

Mobile phone manufacturers in Korea are shifting their focus to the export market in addition to meeting rapidly expanding domestic needs. Strategically positioned between the world's largest mobile phone markets, Japan and China, Korean manufacturers are poised to realize tremendous growth in handset exports as consumers in these markets demand devices with advanced functionality.

"The China market is expected to become the world's largest CDMA market in the next five years," says Gordon Tsang, director, Sales, Zi Corporation. "With this export strategy in mind, Zi's language expertise is fundamental in developing a superior product with global market appeal."

eZiText™ will initially be implemented in SK Teletech handsets in English and Chinese with expected commercial production to begin in the first quarter of 2002. eZiText™ enabled handsets produced by SK Teletech will support recent advances made by SK Telecom in the CDMA market in China. In June 2001, SK Telecom signed a contract to supply CDMA consulting services to Unicom Horizon Mobile Communications, a Chinese CDMA mobile communications provider and an affiliate of China Unicom, China's second largest mobile communications firm.

"eZiText™ will assist us in producing handsets that are truly consumer oriented," said Mr. Kyung Hong, president, SK Teletech. "We succeeded in the Korean handset market by introducing new features and innovative designs. We will succeed in developing superior 3G devices with Zi Corporation's expertise in defining an intuitive user interface."

In addition to English and Chinese, which will be involved in the initial implementation, eZiText™ has been licensed in thirteen other languages to support SK Teletech export efforts. Future implementations may include eZiText™ capabilities in French, German, Italian, Japanese or Korean.

Established in 1998, SK Teletech specializes in the production of mobile handsets and multimedia products. As a subsidiary of SK Telecom, the largest CDMA cellular service provider in the world, SK Teletech is focused on developing handsets that maximize the competitiveness of SK Telecom's cellular services. SK Teletech launched SKY brand handsets in 1999, introducing new features and taking Korean mobile phone manufacturing to a new level of sophistication. With a truly consumer oriented approach to mobile design and development, SK Teletech is aiming to become a major world player in manufacturing mobile and multimedia handsets.

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).

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.

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For more information:

Dale Kearns
Zi Corporation
Chief Financial Officer
Phone: 403 233 8875
investor@zicorp.com
www.zicorp.com
Mr. Kim Won Shik
SK Teletech
Senior Researcher
Phone: +82 2 829 2861
wonsik@sktelecom.co.kr
www.skteletech.co.kr


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