News release

 Zi Corporation


OCTOBER 31, 2002 - 07:00 EST

Letter of Intent to Sell Zi Services Expires


CALGARY, ALBERTA--Zi Corporation (Nasdaq: ZICA) (TSX: ZIC) today announced that the previously announced letter of intent to sell all of Zi's interest in its Hong Kong-based telecom technology unit to an Over-the-Counter Bulletin Board traded company has terminated. Zi is currently evaluating all appropriate options relating to its investment in Zi Services in the interests of furthering Zi's overall drive towards profitability by divesting of non-core interests.

The Zi Services business unit was originally developed to assist customers in designing and developing voice over internet protocol (VoIP) terminal devices and Bluetooth(TM)-enabled devices for low power, short-range, two-way wireless communications.

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. 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 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 current expectations and assumptions, which may involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Those risks include unanticipated business and economic conditions, competitive actions, continued acceptance of products and services and dependence on third party performance. Because of those risks, among others, readers should not place undue reliance on the forward looking statements. Zi Corporation does not assume any obligation to update forward looking statements in this press release.

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For further information please contact:

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

 Zi Corporation
Dale Kearns
Chief Financial Officer
(403) 233-8875
E-mail: investor@zicorp.com
Website: www.zicorp.com
Allen & Caron Inc.
Len Hall
Business/Financial Media Inquiries
(949) 474-4300
E-mail: len@allencaron.com

 FitzGerald Communications
Fred Bateman
Technology Media Inquiries
(415) 986-9500 ex. 208
E-mail: fbateman@fitzgerald.com

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