News release

 Zi Corporation


Zi Corporation Update on Litigation


CALGARY, AB, October 7, 2002 - Zi Corporation (Nasdaq: ZICA) (TSE: ZIC) announced today that the presiding judge in the California lawsuit between Zi and Tegic Communications Inc., a division of AOL Time Warner, has ruled that pending motions in the lawsuit will be heard on November 8, 2002. The motions made by Zi include a motion to set aside the damages awarded by the jury on September 4, 2002 on the basis that such damages were incorrectly awarded as a matter of law. No judgment has been entered in this case pending the hearing and decision on Zi's motion to set aside the jury's verdict. Zi and Tegic shall resubmit their respective previously filed motions on a consolidated and condensed basis. Rulings on all motions may be reserved by the presiding judge and may be made subsequent to the hearing. If the jury's verdict is entered as a judgment without change, Zi will immediately appeal the judgment.

About Zi Corporation

Zi Corporation (www.zicorp.com) 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 products, eZiTap and eZiText, connect people to short messaging, e-mail, e-commerce, Web browsing and similar applications in almost any written language. eZiNet is a new network-based platform that enables handset manufacturers and network operators to provide users with access to media rich content and information stored on a network, despite the memory restrictions of the mobile device. Zi supports its strategic partners and customers from offices in Asia, Europe and North America. 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 that involve expectations or intentions (such as those relating to future deployments or planned cooperation) may 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 expectations 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, competitive actions, continued acceptance of Zi Corporation's products and services and dependence on third party performance as well as the risks and uncertainties referred to in Zi Corporation's 20-F for the most recent calendar year that is filed with the Securities and Exchange Commission. The reader should not place undue reliance on such forward looking statements. Zi Corporation does not assume any obligation to update such forward looking statements.

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For further information:

Investor Inquiries:

Allen & Caron Inc.
Jill Bertotti
Phone: (949) 474-4300
E-mail: jill@allencaron.com

Zi Corporation
Dale Kearns
Chief Financial Officer
Phone: (403) 233-8875
E-mail: investor@zicorp.com

Media Inquiries:

Allen & Caron Inc.
Len Hall (Business/Financial media)
Phone: (949) 474-4300
E-mail: len@allencaron.com


FitzGerald Communications
Fred Bateman (technology media)
Phone: (415) 986-9500 ex. 208
E-mail: fbateman@fitzgerald.com

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