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October 20, 2000

Zi engineers develop Bluetooth design for new headset

Calgary, AB (Oct. 20, 2000) - Zi Corporation (NASDAQ: ZICA) (TSE: ZIC) has signed a three-year licensing and royalty agreement to provide a new Bluetooth reference design to Fujikon Industrial Holdings Limited (stock code: 0927). The reference design is being used in conjunction with Fujikon’s expertise in mechanical and acoustic design to create a Bluetooth-enabled wireless headset.

"The Bluetooth market is set to explode with estimated compound annual growth rates of 63 per cent during the next six years," says Gary Kovacs, senior vice president, Marketing and Sales, Zi Corporation. "Our acquisition of Telecom Technology Centre (TTC) in July of this year allows us to capture this market growth and play a leadership role in the development of Bluetooth technology."

Bluetooth frees users from cords and connections and allows for wireless voice and data transfer up to 10 meters. Applications for Bluetooth technology span the spectrum of audio products, personal communication and computer products. The new headset, will include enhance mobile interaction with features such as hands-free call answering, secured voice communication and interference immunity.

"The effective application of Bluetooth technology requires close collaboration," said Johnny Yeung, chairman, Fujikon. "Therefore with our expertise in the design and manufacture of electro-acoustic products and technical input from TTC, our electro-acoustic products will be Bluetooth enables so they can capture the market share more efficiently."

Established in 1982, Fujikon is an acoustic accessories manufacturer specializing in consumer audio products. Fujikon product line features speakers, headphones, and microphones, designed for multimedia computer and audio purposes, distributed to major consumer electronic computer manufacturers and retail chains in five continents around the world.

Zi Corporation is a leading provider of embedded software technology and educational products and services. The company’s core product, eZiText™ , connects people to short messaging, e-mail, e-commerce, Web browsing and similar applications in almost any written language. Zi supports its strategic partners from offices in Calgary, Beijing, Hong Kong, San Francisco, Shenzhen, Stockholm and Tokyo. 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 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) 231-4575
Email: investor@zicorp.com
Web site: www.zicorp.com

Mr. Weeky Wong
Fujikon Industrial Holdings
Executive Director
Phone: 852 2605-5008
Email: weeky@fujikon.com
Web site: www.fujikon.com

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