Zi Corporation Announces Joint Marketing and Distribution Relationship with Netscape.

CALGARY, ALBERTA--(BUSINESS WIRE)--Oct. 6, 1997--Zi Corporation (TSE, Alberta Stock Exchange ZIC., NASDAQ ZICAF.) Zi Corporation (TSE: ZIC; NASDAQ: ZICAF) is pleased to announce that it has entered into a marketing and distribution relationship with Netscape Communications Corporation for distribution of Netscape's Navigator 4.0 Browser. Zi Corporation intends to combine the Navigator 4.0 Browser with Zi Corporation's Zi 8 Input and Zi Mail products to form a value-added, feature-rich Internet package.

This relationship makes Zi Corporation a licensed distributor of Netscape's Navigator 4.0 product. Zi Corporation and Netscape intend to work together in identifying distribution channels in China for Zi Corporation to market and distribute this combined Internet offering. Zi Corporation also intends to market and distribute this Internet suite to the entire Asia-Pacific region.

"Netscape is pleased to be working with Zi Corporation to bring Internet products to China," said Savio Chow, General Manager, North Asia for Netscape. "Working with Zi Corporation gives us an excellent opportunity to use our combined distribution networks to offer a high-value package to Internet users in one of the fasted growing IT markets in the world."

"The addition of the Navigator 4.0 Browser rounds out our Internet suite nicely and enables us to offer a more robust, fully-featured product offering," noted Don Smallwood, SVP and Head of Asia Pacific for Zi Corporation. "We are also pleased to be able to work with an experienced company like Netscape to market and distribute our Internet Suite in China."

Zi Corporation specializes in the development and marketing of Chinese character-based software and technology. Based in Calgary, Canada, with offices in Hong Kong, Beijing and San Francisco, Zi Corporation's goal is to better connect technology to the Chinese character-based languages.

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation reform Act of 1995 concerning the anticipated benefits to Zi Corporation of its relationship with Netscape, including the expected inclusion of Netscape's Navigator 4.0 Browser with Zi Corporation's Internet suite. Such forward-looking statements involve risks, uncertainties and other factors which may cause the actual results, performance or achievements of Zi Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include uncertainties as to the ability to successfully integrate Netscape Navigator with Zi Corporation's software and to collaborate with Netscape; the ability of Zi Corporation to successfully market and distribute any of its or Netscape's products; and the risks and uncertainties referred to in Zi Corporation's Report of Form 20-F for the year ended December 31, 1996 filed with the U.S. Securities and Exchange Commission. There can be no assurance that Zi Corporation will achieve commercial success through the collaboration described herein. -0-

NEITHER THE ALBERTA STOCK EXCHANGE NOR NASDAQ HAVE APPROVED OR DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.

CONTACT: Zi Corporation

Roland M. Schatz, 403/233-8875, http://www.zicorp.com