For Immediate Release (Calgary, AB Canada)
September 13, 1999

The Corporation has today received notice that it’s legal action for patent infringement against Tegic Communications, Inc., of Seattle has been dismissed by a United States District Judge in Seattle, Washington.

This decision speaks only to the issue of Tegic’s motion for summary dismissal, and no other inferences can be drawn with respect to the two parties respective technologies or products.  The summary dismissal of Zi’s action for infringement will not affect Zi’s business of making modern electronic technology accessible to people in a way that is consistent with their language and culture. 

The commercial acceptability of Zi’s technology and products and its leadership in Chinese and multi-language Smart Text Input software is evidenced by the dramatic results that Zi has achieved in licensing such software.  Zi’s product is now installed in the 3 models of Ericsson cell phones being marketed throughout Greater China today.

Additionally, Zi has recently licensed it's multi-language Smart Text Input software to:

• Konka Group Co., Ltd. to be integrated with Konka’s GSM digital cell phones sold in China and overseas.
• The Ministry of Information Industries (MII), of the People’s Republic of China, Research Institute of TV and Electro-acoustics, for incorporation into Chinese manufactured TV set-top boxes and other consumer information appliances.
• Sichuan New Tech Digital Equipment Co., Ltd. for incorporation into DVD products including set-top boxes for distribution throughout China.
• Xiamen Overseas Co., Ltd. to be integrated into Xoceco’s lineup of GSM digital cell phones sold in China and export markets.

In addition, Zi Corporation recently established a joint-venture company with a subsidiary of the Ministry of Education in the People’s Republic of China for the incorporation of Zi technology into products for distribution into the education system in China and the Chinese consumer market.

The Corporation and it’s United States legal advisors consider the decision to summarily dismiss Zi’s infringement action to be incorrect and the Corporation intends to appeal.  While this lower court’s decision will impact the timing of finally resolving the Corporation’s claim against Tegic, it in no way impacts Zi’s resolve to protect its Intellectual Property rights and pursue to the fullest extent legal action against Tegic and any other parties that it believes are infringing its Intellectual Property rights.

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

FOR FURTHER INFORMATION, PLEASE CONTACT:

Zi Corporation
Michael E. Lobsinger
+1 403.233.8875
E-mail: investor@zicorp.com
Web site: http://www.zicorp.com