For Immediate Release (Calgary, AB Canada) 
October 15, 1999 

Calgary, AB (Oct. 15, 1999) — Zi Corporation (TSE: ZIC; NASDAQ: ZICA) today announced it has licensed eZiText™, its intuitive language processing system, to SVA Computer Co., Ltd., a member of the Shanghai General Electronics Group (SGEG).  The licensing and royalty agreement covers the integration of eZiText™, for both Chinese and English, across SGEG’s product line.  SGEG produces a range of products including personal computers, consumer electronics and telecommunications equipment.

“Our collaboration with Shanghai General Electronics makes Zi’s language input software accessible in a wide range of products, including Karaoke sets and TV set-top boxes,” says Antoine Blondeau, senior vice president of marketing and sales, Zi Corporation.  “The Karaoke implementation shows how eZiText™ can become a common feature of any electronic appliance where Chinese language entry is required.  We expect to see more applications of eZiText™ in the Chinese consumer’s daily life.  This agreement also broadens the exposure of Zi’s language processing technology as SGEG exports their products internationally.”

 SGEG ranks third in the Ministry of Information Industries top 100 companies. The company posted sales of US$1.3 billion in 1998 and has established branches and sales offices in over ten municipalities and provinces in Mainland China.  The company also owns and markets famous Chinese brand names such as: Jinxing for colour televisions and Shanghai for video and audio electronics. 

“Developing our high-tech operations is a priority,” says Guo Shihong, chief engineer, multimedia network and product lab for SGEG.  “Zi’s intuitive software will make our products more attractive to consumers and its local presence in research and development means the product will be customized for the Chinese consumer.  The Karaoke box is very popular in China and our first project will embed eZiText™ in our new MPEG Karaoke box, allowing the user to select songs more easily and conveniently.”

The eZiText™ input system works on a reduced keypad by allowing users to quickly enter Chinese text using eight strokes.  While the average Chinese character contains between 10 and 39 strokes, the eZiText™ input system predicts most characters after only 2-3 strokes are entered.  The software application is language independent and is currently available in 13 alphabetical languages and three ideographic languages.

Zi Corporation is a software company making modern electronic technology more accessible to people in a way that is consistent with their language and culture.  The company’s eZiText™ input software is licensed in several languages for devices ranging from mobile phones to TV set-top boxes.  Zi’s common shares trade on both the Toronto Stock Exchange (ZIC) and the NASDAQ stock market (ZICA).

SGEG has four main operating divisions: Telecommunications Equipment, Home Electronic Appliances, Computers and Colour Television Picture Tubes.  SGEG sells their products all over the world and has production facilities in South Africa, Argentina and the United States.  SGEG has over 20 joint venture companies with multinational enterprises such as Kenwood Electronic, Matsushita and Sharp.

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.

Karen Attwell
Manager, Investor/Media Relations        
Zi Corporation
Phone: (403) 233-8875 
Email: mailto:investor@zicorp.com?Subject=Regarding to Press Release Oct 15, 1999
Web site: http://www.zicorp.com/

Guo Shihong
Chief Engineer, Multimedia Network and Product Lab
Shanghai General Electronics Group
Phone: (86-21) 6482-9991
Web site: www.csgeg.com