News release

Zi Corporation



Datang Telecom chooses eZiText™ for CDMA handsets


Calgary, AB (October 16, 2001) - Zi Corporation (NASDAQ: ZICA) (TSE: ZIC) will provide expertise in text entry standards to Datang Telecom Technology Co., Ltd. (Datang Telecom). Datang Telecom is a well-known telecom infrastructure provider in China and is expanding to develop their own line of CDMA (code division multiple access) handsets. Datang Telecom signed a five-year licensing agreement for the use of eZiText™ technology in English and Chinese.

"At Datang Telecom we are expanding beyond our telecommunications infrastructure products and we have chosen Zi to support us as we begin development of our first line of CDMA handsets," said, Mr. Chen Xiaozhou, Vice General Manager, Personal Equipment Business Unit, Datang Telecom. "Our commitment under this agreement is a reflection of our confidence in the burgeoning CDMA market in China and the value Zi and its predictive input solution, eZiText™, will bring to our handset."

Datang Telecom is moving to provide total telecommunications solutions. As a major manufacturer of telecommunications switching equipment for network operators in China, Datang Telecom currently employs 3,600 people. After the completion of their new manufacturing facility in northwest China, Datang Telcom’s manufacturing capability will reach as much as 6 million lines of switches. Datang Telecom is expanding to develop their own line of CDMA handsets.

China's first CDMA network is being established by China Unicom, resulting in an increased number of manufacturers developing CDMA handsets for this emerging market including Datang Telecom. China Unicom’s CDMA network is expected to reach 160 cities in China by the end of this year. The Yankee group estimates that by 2005 the number of CDMA subscribers in China will reach 55 million.

"Zi is focused on working with manufacturers in China as a part of our strategy to capture the growth in mobile device manufacturing in Asia," says Michael Lobsinger, chairman and CEO, Zi Corporation. "Through our work with these manufacturers, Zi has proven our leadership in Chinese text input. We are eager to bring our expertise and to expand our licensees to include the many emerging manufacturers such as Datang Telecom. Datang Telecom sought our assistance because eZiText™ Chinese is proven, certified and is fast becoming the standard for text entry on mobile devices."

Datang Telecom Technology Co., Ltd. (Datang Telecom) was jointly established by the China Academy of Telecommunication Technology (CATT) and twelve other companies in September 1998. The company is an influential developer of telecommunications infrastructure such as switching equipment, telephone exchanges and optical communications. Datang Telecom was listed on the Shanghai Stock Exchange in October 1998.

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. Chen Xiaozhou
Datang Telecom Technology Co., Ltd.
Vice General Manager, Personal Equipment
Business Unit
Phone: 8610-6230-2924 ext. 810
chenxzh@dt-mail.com
www.dtt.com.cn/english/


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