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CIC RECEIVES $1.5-MILLION GRANT FROM U.S. DEPARTMENT OF COMMERCE TO CAPTURE CHINA'S COMPUTER AND COMMUNICATIONS MARKET

 REDWOOD SHORES, Calif., Nov. 8 /PRNewswire/ -- Communication Intelligence Corp. (CIC) (NASDAQ-NMS: CICI) today announced that it has received a $1.5-million grant from the U.S. Commerce Department's National Institute of Standards and Technology (NIST) under the Advanced Technology Program (ATP) to continue research and devm?ent on handwriting recognition software for the Chinese language. The Advanced Technology Program is designed to accelerate development and commercialization of promising technologies with substantial potential for enhancing U.S. economic growth. NIST's goal for funding CIC is to enhance the exports of U.S. computer hardware and software to Chinese- speaking countries.
 U.S. Secretary of Commerce Ron Brown, in a keynote speech before the Technology Summit on Nov. 4, 1993, stated, "China represents a great marketing opportunity for our computer hardware and software firms, but their language has long been a formidable barrier to widespread use of Western computers. CIC hopes to remove that barrier with a system that allows the Chinese to communicate with our computers simply by writing their characters."
 "CIC appreciates the confidence and support of the U.S. Department of Commerce," stated CIC President James Dao. "This grant is significant to CIC not only for the revenue it will generate, but also because it is another important and prestigious verification of the leadership of our recognition technology and the importance of pen computing to the United States. Accurate, robust handwriting recognition is the key to the emerging pen-based computing and communications markets both in the U.S. and in international markets such as China."
 As recently announced, CIC has formed a major joint venture with the Ministry of Electronic Industries of the Jiangsu Province, People's Republic of China. The joint venture, Communication Intelligence Computer Corp. Ltd., will perform system integration services and market CIC's pen-based business computer and communication systems to Chinese business and government users. Proceeds from the NIST-ATP grant will be used to help offset CIC's costs to complete an advanced Chinese language user interface and handwriting recognition software.
 According to NIST, with approximately 20 percent of the world's population, and an economy with an overall growth rate estimated as high as 12 percent, China represents the great frontier for international trade. Over the next few years, China is expected to become a major market for high-tech electronics, particularly business computer systems, but widespread use of computers has been hampered by the lack of a simple, reliable user interface. Written Chinese involves thousands of complex characters formed with up to 30 individual strokes in a complex two-dimensional pattern. Worse, the language is highly homophonic -- many quite different characters are pronounced the same, so phonetic systems based on the standard English keyboard are difficult to use. Hundreds of attempts have been made at Chinese keyboards, but all are slow, and unwieldy.
 CIC is developing a pen-based character recognition system for the first truly "Chinese computer." The user would simply write characters as they would on paper. CIC has extensive experience in the field, having developed the most widely used handwriting recognition system for Japan, the United States and Europe. CIC also has license and OEM agreements with U.S. computer hardware and software developers that would enable CIC's technology to enhance the value of their products that are exported to China.
 The Company
 CIC is recognized for its pen computing technology and products in the United States and throughout the world. The company's Handwriter(R) Recognition System software, which is available in numerous languages and compatible with various operating systems, is two-time winner of Boston University and Pen Magazine's award for "Best Recognizer." CIC's PenDOS(R) and Handwriter(R) Recognition System for PenDOS(R) are distributed and exclusively sublicensed by IBM to pen computer manufacturers worldwide. CIC's Handwriter(R) for Windows(TM), MacHandwriter(R), and MacHandwriter II -- pen input systems for the desktop, combining both hardware and software -- are distributed in the United States, Canada and Japan.
 CIC is headquartered in Redwood Shores, and has subsidiaries in Tokyo, and Nanjing, China. The company is publicly traded and is listed on the NASDAQ National Market as CICI.
 NOTE: Company and product names used herein are trademarks or registered trademarks of their respective companies.
 -0- 11/8/93
 /CONTACT: Anne Butler, Director, Investor Relation for CIC, 415-802-7888/
 (CICI)


CO: Computer Intelligence Corp. ST: California IN: CPR SU:

TB-SG -- SJ006 -- 1603 11/08/93 09:01 EST
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Date:Nov 8, 1993
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