Zi CORPORATION
NEWS RELEASE

For Immediate Release (Calgary, AB Canada)
Oct 21st, 1999

Zi Corporation licenses eZiText(tm)to Alcatel
Calgary, AB (Oct. 21, 1999) — Zi Corporation (TSE: ZIC; NASDAQ: ZICA) announced today that it has signed a licensing and royalty agreement with Alcatel of France.  The agreement covers the use of Zi’s intuitive language processing software, eZiText(tm), for European and ideographic languages, including 13 European languages, Chinese and Japanese.  Alcatel will integrate Zi’s software in its products, including its new line-up of GSM digital phones.

“This is a landmark agreement for our company and given its significance, management felt the market should be notified immediately,” said Michael Lobsinger, chairman and chief executive officer, Zi Corporation.  “We expect to issue a joint statement with Alcatel in the near future.”   

The agreement is important to Zi, as Alcatel is one of the top five GSM cellular phone manufacturers, with a world market share of 10 per cent.  In 1998 alone, Alcatel’s phone shipments were about 8 million units.

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(tm) 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). Zi markets its technology through strategic partnerships worldwide from offices in Beijing, Hong Kong, San Francisco and Calgary.

Alcatel builds next generation networks, delivering integrated end-to-end voice and data communications solutions to established and new carriers, as well as enterprises and consumers worldwide.  With 120,000 employees and sales of EURO 21.3 billion (US$25.0 billion), Alcatel operates in more than 130 countries.

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.
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For further information, please contact: 
Karen Attwell    
Zi Corporation     
Manager, Investor/Media Relations   
Phone: (403) 233-8875    
Email: mailto:inverstor@zicorp.com?Subject=Comment about P.R. Oct 21 1999    
Web site: http://www.zicorp.com/