For Immediate Release (Calgary, AB Canada)
November 05, 1999

Zi signs licensing agreements for eZiTEXT(tm) with Beijing Telecommunication Equipment Factory and Mobicom Corporation

Beijing, PRC (Nov.  5, 1999) — Zi Corporation (TSE: ZIC; NASDAQ: ZICA) is pleased to announce that it has entered into licensing and royalty agreements for its eZiTEXT(tm) language processing technology, with China's Beijing Telecommunication Equipment Factory (Capitel) and Mobicom Corporation (Mobicom).  The agreements call for the integration of eZiTEXT(tm) into Capitel's range of mobile phones and allow technology provider Mobicom to sublicense the technology to its customers.

Capitel is the ninth largest electronics company in China with consolidated revenues of RMB 7.38 billion (US$830 million) in 1998. Capitel is a state-owned company run under the Chinese Ministry of Information Industries.  Capitel’s main product lines include mobile network base stations; mobile phone handsets and mobile power supply technology. The company is also a joint-venture partner of Alcatel, Ericsson and Nokia in Beijing Alcatel Transmitting Co. Ltd, Beijing Nokia Mobile Communication Co. Ltd and Beijing Ericsson Mobile Co. Ltd., respectively.  These joint ventures manufacture a large volume of their core-competency telecommunications products for the Chinese and overseas markets.

Mr. Zhang Yue, director, Research and Development at Capitel says, “We're very comfortable with Zi Corporation.  Zi's Chinese language input technology has been co-developed in China, is marketed by Chinese people, and is integrated in our platform by Zi's Chinese engineers from their Beijing research and development facility. It is very important to us manufacturers in China to receive on-site support, particularly in the embedded software space. Zi is one of few software developers to have such an extensive China setup.”

With headquarters in Holmdel, New Jersey, Mobicom designs, develops, manufactures and markets in cooperation with Beijing Telecommunications Equipment Factory advanced GSM and CDMA cellular phones in China and other selected world markets. Eighty per cent owned by Capitel, Mobicom's main product is a GSM handset platform based on the Lucent Optimay reference solution.  Mobicom's platform is exclusive to Capitel in China. However Mobicom has the ability to sell a finished product under the "Mobicom" brand name in North America and Europe, or alternatively to OEM its product to third party customers.

Together, both companies expect to sell one million phones in China in 2000 and two million in 2001, all of which will carry the eZiTEXT(tm) technology. “This is an opportunity to bundle good technology that will benefit our customers in North America and Europe, and therefore increase the value of our offering,” commented Winston Lieu, chief technical officer at Mobicom. The versatility of the Zi engine means languages are entirely interchangeable: only one integration will be required and will operate across languages. We have the ability to demonstrate a Chinese product in the morning and a European product in the afternoon using the same platform." “Integration experience, flexibility and execution speed were key to win Capitel's confidence. We now have over 50 employees in China, of which more than half are in R&D and technical support functions. This investment is now paying off,” remarked Antoine Blondeau, senior vice president, Sales and Marketing, Zi Corporation.

Zi is also happy to invite its customers, partners and friends to visit with us at Booth A405 at the upcoming PT Expocomm held in Beijing from Nov. 9 - 13.  Zi will exhibit Capitel's new line-up of GSM phones as well as models from our many partners in China and overseas. 

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. 

For further information, please contact: 

Karen Attwell
Manager, Investor/Media Relations 
Phone: (403) 233-8875 
Email: mailto:investor@zicorp.com?Subject= About Press Release ONov. 1, 1999
Web site: http://www.zicorp.com/
 

Zhang Yue
Capitel
Director, Research and Development
Phone: 86-10-6432 6561
Web site: www.btef.com.cn