news release

 Zi Corporation


Zi Corporation Completes Financing

CALGARY, AB, December 10, 2002 - Zi Corporation (Nasdaq: ZICA) (TSX: ZIC) announced today that it has completed arrangements for a secured short-term credit facility in the amount of US$3.3 million. The borrowings under the credit facility are repayable on March 5, 2003. In addition to a commitment fee and interest at 12 percent per annum on the credit facility, Zi issued 100,000 common share purchase warrants. Each warrant is convertible into one Zi common share and is exercisable for two years at CDN$3.62 per share.

Following the previously announced patent litigation settlement agreement and funding of this credit facility, Zi presently has CDN$5 million of cash on hand. Previous employee reductions by the company, a focus on its core eZiText business and lower legal costs going forward have reduced Zi's overhead costs. Zi believes that its resources are more than sufficient to operate during the term of the financing, permitting the company to seek new financing to repay the credit facility and fund the company's working capital requirements.

Zi also announced that in an effort to focus the company around its core business, it has closed the operations of its Zi Services business unit.

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. eZiNet™ is a new network-based platform that enables handset manufacturers and network operators to provide users with access to media rich content and information stored on a network, despite the memory restrictions of the mobile device. 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 (such as those relating to future deployments or planned cooperation) 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 Zi Corporation's current expectations 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, competitive actions, continued acceptance of Zi Corporation's products and services and dependence on third party performance as well as the risks and uncertainties referred to in Zi Corporation's 20-F for the most recent calendar year that is filed with the Securities and Exchange Commission. The reader should not place undue reliance on such forward-looking statements. Zi Corporation does not assume any obligation to update such forward-looking statements.

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For further information please contact:

Allen & Caron Inc: Investor Inquiries
Jill Bertotti
Phone: (949) 474-4300
Email: jill@allencaron.com
 Allen & Caron Inc: Media Inquiries
Len Hall
Business/Financial media
Phone: (949) 474-4300
Email: len@allencaron.com
INDUSTRY : TLS
SUBJECT : FNC
Zi Corporation: Investor Inquiries
Dale Kearns
Chief Financial Officer
Phone: (403) 233-8875
Email: investor@zicorp.com
  

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