For Immediate Release (Calgary, AB Canada) 
December 17, 1999 

Calgary, AB (Dec. 17, 1999) – Zi Corporation (TSE: ZIC, NASDAQ: ZICA) today announced it has received subscriptions for private placements in the amount of approximately CDN$20 million (US$13 million).  Proceeds from the private placement are designated to finance Zi’s continued growth.

Zi intends to issue 701,316 units at US$19.00.  Pricing for the issue was based on Zi’s Thursday, Dec. 16 close of US$19.125.  Each unit is composed of one common share and three quarters of one common share purchase warrant.  Each full warrant may be exercised for 24 months following payment of US$21.00 per share for the first 12 months and US$23.00 per share for the period from 12 months to 24 months after the date of issuance.  The transaction is subject to regulatory approval.

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. The information in this press release is based on Zi Corporation’s current expectation 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 and competitive actions as well as the risks and uncertainties referred to in Zi Corporation’s 20-F for the most recent calendar year.

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/