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CIC FORMS MAJOR JOINT VENTURE IN CHINA; TO MARKET PEN COMPUTING SYSTEMS AND COLLABORATE IN TRAINING

 REDWOOD SHORES, Calif., Oct. 4 /PRNewswire/ -- In a major development of its long-term business strategy, Communication Intelligence Corporation (CIC) (NASDAQ-NMS: CICI) announced the formation of a joint venture with The Ministry of Electronic Industries of the Jiangsu Province, People's Republic of China. The joint venture, Communication Intelligence Computer Corporation, Ltd., will perform system integration services and market CIC's pen-based business computer systems to Chinese business and government users. The joint venture, in which CIC will hold a 79 percent equity interest, will be based in the city of Nanjing, the capital of Jiangsu Province. The Jiangsu Province has the second largest GDP in China, estimated at 18.5 percent.
 The joint venture will also collaborate with the Jiangsu Provincial Government and with local universities in offering education in system engineering, application development, computer automation and end-user training. It will also implement strategic opportunities for the manufacture of pen computer equipment in China for domestic and export markets.
 Product development and marketing efforts are already underway, and initial product shipments are expected within 12 months.
 "With its rapidly expanding economy and urgent need for computerization, we see China as a major opportunity for CIC," said James Dao, president and chief executive officer of CIC. "Pen computing makes perfect sense in China where the over 10,000 ideographic characters of the Chinese language make traditional keyboard entry slow and difficult. CIC's Handwriter(R) pen technologies will handle Chinese applications and the recognition of Chinese characters extremely well. We intend to select from around the world the best computer hardware, software and other leading edge technologies to create outstanding system solutions for China. Jiangsu Province has the largest industrial production in China and its population is abundant with well educated people. CIC intends to utilize this rich human resource to establish a world-class system integration business. Working with such an outstanding group of partners in China and abroad, CIC is positioned to help China accelerate its modernization drive and efficiently move into pen computing on a broad scale."
 Under the financial terms of the agreement, CIC may invest up to $5.4 million in cash over the next two years and will contribute non- exclusive rights, valued at $2.5 million, to specific technologies it has developed. For this contribution, CIC will receive a 79 percent equity interest in the joint venture. Additional equity capital will be contributed by the Chinese joint venture partner in the form of prime land and approximately $15 million in loans are to be provided from certain Chinese banks.
 Herbert Lechner, a board member of CIC since 1986 and Larry Wu, a corporate vice president of CIC, have relocated to China to manage the joint venture and train the local management team.
 Mr. Lechner, 60, a computer and MIS veteran, began his career in product and marketing management positions with IBM Corporation. He also served as a corporate vice president with Fireman's Fund Insurance Co., American Express, The Singer Company and SRI International. He recently served as president and CEO of Quintus Computer Systems, Inc., a computer software company. Mr. Lechner has extensive, broad-based experience in the establishment and operations of large MIS systems. Mr. Lechner will serve as a board member of the joint venture and general manager of the administration division and the Education Institute.
 Mr. Larry WU, 61, was educated as an engineer at the Massachusetts Institute of Technology and earned his MBA from Harvard University. Mr. Wu had a distinguished career with IBM in strategy development, marketing and sales. Mr. Wu has successfully launched numerous products and programs, such as starting the Commercial System Integration Business for IBM. Mr. Wu will serve as a board member of the joint venture and general manager of products, marketing and sales divisions.
 CIC is well-recognized for its pen computing technologies, PenDOS(TM) pen operating environment, Handwriter Recognition System and the Signature Verification(TM) System, in the United States and throughout the world. The company's Handwriter Recognition System software, which is available in numerous languages and compatible with various operating systems, is the two-time winner of Boston University and Pen Magazine's award for "Best Recognizer."
 NOTE: Company and product names used herein are trademarks or registered trademarkets of their respective companies.
 -0- 10/4/93
 /CONTACT: Germaine Gioia, manager-corporate communications, 415-802-7754, or Anne Butler, director-investor relations, 415-802-7888, both of CIC/
 (CICI)


CO: Communication Intelligence Corporation ST: California IN: CPR SU: JVN

TS-PS -- NY023 -- 8181 10/04/93 09:02 EDT
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Date:Oct 4, 1993
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