For Immediate Release (Calgary, AB Canada) 
September 20, 1999 

Zi Corporation (TSE: ZIC; NASDAQ: ZICA) (“Zi”) is pleased to announce that it has entered into a licensing and royalty agreement with Synchronization Inc., a subsidiary of China’s Eastern Communications Co., Ltd. (Eastcom). The agreement was signed to provide Zi Input software for integration with Eastcom’s range of GSM digital cellular phones sold in Greater China and around the world.  

Synchronization Inc., based in Irvine, California, specializes in designing GSM platforms for Eastcom. Eastcom is listed on the Shanghai Securities Exchange. The company is focused on the manufacture and sales of mobile communications equipment. Revenues for the year 1998 reached RMB 5 billion (US$560 million).     

Eastcom has been a partner of Motorola in China for a long time, co-developing and manufacturing Motorola-brand pagers, analogue and digital cellular handsets for over 5 years, most recently the GC87C, first Chinese menu digital phone on the market.

At present, Eastcom is the largest China-based manufacturer and supplier of cellular mobile telephones and cellular mobile systems equipment. Eastcom has announced it will be launching 10 different phone models each year from 1999.

Antoine Blondeau, Senior Vice President for Marketing and Sales at Zi Corporation remarked, “Eastcom is the most experienced manufacturer of GSM handsets in China. This guarantees a smooth volume ramp-up and quality cell phone delivery to customers. Eastcom has already launched China’s first locally developed GSM handsets, the-EC528, the first Chinese phone to pass European GSM Type Approval tests.  Eastcom is one of the few manufacturers to rely on an established customer base.  This is the second time we have had an opportunity to work with the Lucent hardware solution, which plays an important role in China. Zi Corporation’s Intelligent Text Input for Chinese will allow Eastcom to enhance its leading position in the Chinese GSM market.”

“Zi Corporation’s Intelligent Text is now a requirement when it comes to marketing cell phones in China: it is both very intuitive and the fastest such technology in the market place", commented Mr. Zhang Ker, President Synchronization Inc.  “Chinese cell phone users are feature-conscious. The Zi input system provides a powerful solution to the traditional input issue. It will become an exciting feature of our platform.”

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 delivers multi-language and smart text input to the mass market for devices such as mobile phones, TV set top boxes, computers and information appliances.

The company is also pleased to announce that effective Monday, September 20, 1999, Zi’s common shares will be included in the TSE 300 Index, TSE 200 Technology-Software Group and the S&P/TSE Canadian Small Cap Index.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 including, without limitation, statements concerning the anticipated benefits to Zi Corporation of its agreement with the licensee (the “Licensee”) described herein.  The expected inclusion of Zi Input technology in products developed by the Licensee and potential revenue therefrom involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Zi Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include uncertainties in the ability to successfully collaborate with the Licensee; the ability of Zi Corporation to successfully design, develop, and deliver any application that complies with the Licensee’s specifications and is accepted by the Licensee; the ability of Zi Corporation to successfully meet specific delivery dates set forth by the Licensee; the ability of Zi Corporation to successfully integrate and maintain compatibility with the Licensee’s technology; possible failure to continue to be selected as the text input enabling technology by the Licensee; the ability of the Licensee to successfully market and distribute any of its products incorporating Zi technology; economic conditions in Asia; the risks of doing business in foreign countries including China; and the risks and uncertainties referred to in Zi Corporation’s  Form 20-F for the most recent calendar year end as filed with the U.S. Securities and Exchange Commission.  There can be no assurance that Zi Corporation will achieve commercial success through the agreement described herein.

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

FOR FURTHER INFORMATION, PLEASE CONTACT: 
Zi Corporation 
Manager - Investor/Media Relations 
+1-403-233-8875 
Email: investor@zicorp.com 
Web site: http://www.zicorp.com 

Synchronization Inc. 
Mr. Zhang Ker
President
Eastcom Web site: www.eastcom.com