Frost & Sullivan Lauds Communication Intelligence Corporation's Technological Leadership-Backed Dominance in the Dynamic Signature Verification Market.

PALO ALTO, Calif. -- Frost & Sullivan selected Communication Intelligence Corporation (CIC) (OTCBB:CICI) as the recipient of the 2007 Global Frost & Sullivan Award for Market Leadership in the dynamic signature verification (DSV) market.

CIC's keen focus on technological innovations, efforts to develop flexible business approaches, increased R&D investments, global expansion initiatives, and novel product offerings are expected to help it hold sway in the DSV market in the future as well.

To maintain its advantage, the company has concentrated on the emerging eSignature segment to aid the creation of a paperless environment, especially in the financial services sector. It has reaped the benefits of this strategy by acquiring an installed base of over 400 customers worldwide. CIC's efforts received a shot in the arm with the passing of the eSign law in late 2000.

While the company's signature verification solutions, which cater primarily to the financial services sector, have been implemented across several banks and insurance companies, the healthcare and government verticals are also expected to be significant revenue generators. The company has aligned its strategies to meet the needs of these potentially vital verticals.

"CIC uniquely offers a common framework to deliver legally binding and compliant electronic signatures to partners and customers, regardless of the specific business process being automated, type of documents being signed, or method of signature required," says Frost & Sullivan Research Analyst Neelima Sagar. "It ensures maximum process and transaction integrity, while the processing time and cost are also drastically reduced."

The company's solutions enable customers to address multiple methods of electronic signature such as biometric handwritten, voice, fingerprint, eSeal, click-wrap and pin/password using just one product. Moreover, CIC's strong relationships with suppliers help reduce its products' time-to-market.

"In both revenue and technology terms, the company remains the leader of the world DSV market," observes Sagar. "CIC held its dominant market share in the total world dynamic signature verification market in 2006. It has a cumulative installed base of $23.0 million worldwide and has significantly enhanced its sales growth potential with partnership license agreements with several major enterprise software ISVs and VARs such as Adobe, IntegraSys/Fiserv, Oracle, and Guardian and OEMs embeds with hardware suppliers such as Lenovo and Hypercom. CIC's sales growth potential is further enhanced given that the accelerated adoption of this technology is being witnessed due to increasing awareness that dynamic signatures are replacing paper-based processes with the highest level of efficiency, cost reduction and non-repudiation."

The company has further bolstered its sales growth potential by inking an agreement with Adobe and its channel partners. It won a license agreement with IntegraSys in 2006, and in early 2007, announced another one with Oracle. The last alliance is significant as it can possibly integrate CIC's solutions within several high-volume financial services applications.

"CIC implements robust customer service strategies by working with its partners through all stages and offering them better solutions to satisfy customers," notes Sagar. "The company has been expanding its capabilities to meet customer needs on time and its knowledge and experience have provided extra value to clients."

Each year Frost & Sullivan presents this Award to the company that has exhibited market share leadership through the implementation of a sound market strategy. It has excelled in all areas of the market leadership process, including the identification of market challenges, drivers and restraints, as well as strategy development.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About Communication Intelligence Corporation

Communication Intelligence Corporation ("CIC") is a leading supplier of electronic signature solutions for business process automation in the Financial Industry and the recognized leader in biometric signature verification. CIC's products enable companies to achieve truly paperless work flow in their eBusiness processes by enabling them with "The Power to Sign Online[R]" with multiple signature technologies across virtually all applications. Industry leaders such as AIG, Charles Schwab, Prudential, Nationwide (UK), Snap-on Credit and Wells Fargo chose CIC's products to meet their needs. CIC sells directly to enterprises and through system integrators, channel partners and OEMs. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information, please visit our website at http://www.cic.com.

About Frost & Sullivan

Frost & Sullivan, the Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information, visit http://www.awards.frost.com.

Forward-Looking Statement 

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 products containing the Company's technology; (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.