Calgary, AB (Oct. 25, 1999) – Zi Corporation (TSE: ZIC, NASDAQ: ZICA) announced today it had entered into a preliminary agreement to acquire all of the outstanding shares of a private company involved in curriculum specific, web-based education and training in China.  The company has positioned itself in market areas that include on-line post secondary content deployment, network-based educational services for kindergarten to grade 12 and new employment training and re-training.  Several Chinese ministries have agreed to work with the company to help develop and distribute courseware.
“This acquisition will give Zi a strategic position in the Chinese educational products marketplace and compliments our joint venture with the Chinese Ministry of Education,” says Michael Lobsinger, chairman and chief executive officer.  This purchase also allows Zi to expand its market for enabling core technology and provides an additional income stream.

The agreement is subject to several conditions, including regulatory approval to issue 100,000 shares of Zi Corporation as partial consideration for the acquisition.  There is no assurance the proposed acquisition will be concluded.

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

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 
Phone: (403) 233-8875 
Email: mailto:investor@zicorp.com?Subject= About Press Release Oct 25, 1999
Web site: http://www.zicorp.com/