CIC China and Tsinghua University Sign Licensing and Marketing Agreement for Chinese Handwriting Recognition Technology.

Business Editors/Education & High-Tech Writers

REDWOOD SHORES, Calif.--(BUSINESS WIRE)--June 30, 2000

(Nasdaq:CICI) Communication Intelligence Corporation ("CIC"), the leading supplier of natural input and electronic signature solutions, announced today that its 90 percent owned joint-venture, Communication Intelligence Computer Corporation Ltd. ("CICC"), has reached an agreement with the Research Center of Intelligent Image and Document Information Processing of the Electronic Engineering Department of Tsinghua University, one of China's most distinguished centers for scientific research and technological development. The agreement pertains to licensing and marketing of Chinese handwriting recognition technologies for handheld devices.

"We are pleased to work with CICC, the leading natural input supplier, as our partner," said Xiaoqing Ding, director of the Research Center of Intelligent Image and Document Information Processing of Electronic Engineering Department of Tsinghua University, "Both of us have advantages in our character recognition technology. We believe this cooperative effort will both enhance the technology and open up more opportunities in the market."

"This alliance with Tsinghua University will greatly enhance the competitive advantage of CIC's Chinese recognition technology," said Guido DiGregorio, president and CEO of CIC and CICC, "By combining Tsinghua University's advanced technology and CICC's engineering and sales strength, I am convinced that our Chinese Handwriter for handheld devices will have a much larger market potential by offering superior solutions to customers."

The Chinese Handwriter(R), a product jointly developed by CIC and CICC, was introduced in China for the desktop market over two years ago. CICC recently introduced Chinese Handwriter for Windows CE specifically designed for Palm-size PC and smartphone manufacturers. These products enable the user to write on the full screen and do not require an input panel area thus maximizing the viewable screen space for other applications. CICC is the first to introduce a handwritten PinYin input method, the most frequently used input method for Chinese users.

About CIC

Communication Intelligence Corporation (CIC) is the leading supplier of natural input and electronic signature solutions for wireless Internet and e-Commerce applications. The Company's core software technologies include multilingual handwriting recognition systems, dynamic signature verification, natural messaging, and operating system extensions that enable pen input. CIC's products are designed to increase the ease of use, functionality, and security of wireless electronic devices ranging from handheld companions to cellular phones. Key licensees of the Company's technologies include Ericsson, Fujitsu, Hitachi, Mitsubishi, National Semiconductor, and Symbian. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information about CIC and its products please visit our website at www.cic.com.

About Tsinghua University and its Research Center of Intelligent Image and Document Information Processing of Electronic Engineering Department

Tsinghua University is one of the most distinguished universities in China. It has disciplines in science, engineering, management and social science with engineering as its main focus. As one of the most prestigious institutions of higher learning, scientific research and technological development, Tsinghua University shoulders great responsibility for educating high-level talent for China and promoting the national economic development.

The Research Center of Intelligent Image and Document Information Processing is a sub-laboratory of State Key Laboratory of Intelligent Technology and Systems. It is highly recognized as one of the best research & development centers in international character recognition. In the past 10 years, the center has achieved highly visible and acclaimed research results in the areas of character recognition, image processing and graphic manipulation. Much of its research activity has been developed into products that are widely accepted in the Chinese market.

For further information about Tsinghua University, please visit the website at: www.tsinghua.edu.cn.

Certain statements contained in this press release, including without limitation, statements containing the words "believes", "anticipates", "hopes", "intends", "expects", and other words of similar import, constitute "forward looking" statements within the meaning of the Private Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors which may cause actual events to differ materially from expectations. Such factors include the following (1) technological, engineering, quality control or other circumstances which could delay the sale or shipment of the products; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect the Company's business; (3) the Company's inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others or prevent others from infringing on the proprietary rights of the Company; and (4) general economic and business conditions and the availability of sufficient financing.

Note to Editors: CIC, its logo, and Handwriter are registered trademarks of Communication Intelligence Corporation. All trademarks and registered trademarks are the property of their respective holders.