For Immediate Release (Calgary, AB Canada)
December 9, 1999

Calgary, AB (Dec. 9, 1999) - Zi Corporation (TSE: ZIC; Nasdaq: ZICA) announced it has licensed its eZiTEXT™ technology to Beijing Zhaohua Data Communications Equipment Technology Co., Ltd. (Zhaohua) for their handheld communications products, including Personal Data Assistants (PDAs).

This licensee deepens the market penetration of eZiTEXT™ in the telecommunications industry of China,” says Kam Ching, director, Business Development & Sales PRC at Zi Corporation. “The fact that Zhaohua has selected eZiTEXT™ on their handheld PDA, for the input of Chinese characters, demonstrates the increasing market acceptance for our technology.

Zhaohua’s first product to include eZiTEXT™ will be a PDA based on the newest member of Motorola’s DragonBall™ series of integrated portable system processors, the MC68EZ328.  This custom made PDA will be used by engineers at Unicom, China’s second largest wireless operator, for the information control and maintenance of Unicom’s GSM and CDMA base stations.  Many Unicom network engineers and technical staff will begin using the technology early next year.  Zi’s integration on the DragonBall™ platform means its technology now works on three PDA platforms, including the Palm OS and WinCE OS.

“With such small devices, an easy-to-use Chinese input technology is vital,” commented   Mr. Yang Zhi Jie, general manager of Zhaohua. “Zi’s eZiTEXT™ technology for the DragonBall™ platform is not only convenient to use, but predicts what a user is writing as they go along. This is a noteworthy innovation as it increases writing speed and reduces the risk of writing wrong characters and words.”

Zhaohua is owned by Beijing Guodu Information Industries Group (Guodu), which is governed by the Organizations Affair Administration of the State Council.  Guodu owns over ten companies, including Beijing On-Line Software Development Co. Ltd. and Beijing Guodu Electronics.  Guodu’s focus is developing and producing high-tech products and services for China’s telecommunications and information industries. It is currently a service representative for the network and microprocessor products of IBM, Hewlett Packard, 3-Com and a network integration representative for Microsoft as well as the service agent of Oracle database systems.

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 such as mobile phones, PDAs and 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, Stockholm, 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
Zi Corporation
Manager, Investor/Media Relations
Phone:  (403) 233-8875
Email: mailto:investor@zicorp.com
Web site:  http://www.zicorp.com/

Mr. Yang Zhi Jie
General Manager
Phone: (8610) 8261-6428
Email: yangzj@public.bta.net.cn