Zi Corp. To Provide Next Generation Language Software to
China's Next Generation of Computer Users
By William J. McMahon
ChinaOnline News
(7/9/99) Zi Corporation, a Canadian-based language software developer,
has gained access to China's 240 million students with a new joint
venture with the Ministry of Education, the company announced
yesterday. The ministry said it will use Zi's Chinese "smart text" input
software, which will allow students to use their own language on
computer equipment throughout its network of nearly a million schools.
The announcement caused Zi Corp.'s stock to soar on the Toronto and
Nasdaq markets yesterday. The stock was up nearly 26 per cent to
C$2.90 on the Toronto Stock Exchange and traded for as high as
US$5.00 a share on the Nasdaq before closing the day at US$1.94, up
39 cents.
The agreement will form the joint venture company, Huayu Zi Software
Technology Ltd. Under the terms of the agreement, Zi will hold an 85%
stake in the new company, and China Huayu will hold the remaining
15% share.
"This is both a commercial validation and a technological validation for
our product," said Wallie Richie, managing director for Greater China at
Zi Corp. "This agreement proves that from the usability side, we have
good technology for China."
In addition to the school computers, Zi's software also can be used in
the growing "information appliances" market, which encompasses a
range of products from PCs, VCRs, hand held computers, mobile
phones and television-based internet access products.
In February, Zi signed an agreement with mobile phone giant Ericsson to
use Zi's software on Ericsson's latest line of cell phones for the China
market. Ericsson will soon deliver its new line of cell phones using Zi
software, Ritchie said.
In addition to expanding Zi's presence in the China market, the
partnership with the education ministry will, more importantly, create a
strong user base for China's future information appliance consumers,
Ritchie says.
Ma Jun, president of China Huayu, was confident that the technology
would strengthen his company's position in the market.
"Zi Input Technology has significant potential to deliver mass market
software that is simple to learn and easy to use by not only the Chinese
education system but also by the growing number of Chinese
consumers that want to become part of the on-line community," Ma
said.
"China Huayu is committed to using Huayu Zi Input Software on every
applicable product that China Huayu and its affiliates manufactures,
sells or distributes in China," he added.
The Ministry of Education oversees over 975,000 schools in China,
including 217,000 universities, and has over 240 million students in its
educational system. The average age of student computers users in
Chinese schools is currently 16 years, the ministry said.
By incorporating the Huayu Zi input system, the estimated average age
will be reduced to 6 years. "Beijing has said it would spend RMB 20
billion (US$240 million) equipping universities and schools with
computers by the 21st century" Ma said.
In connecting language and technology, Zi Corp stands on firm ground in
China's growing IT marketplace.
To contact William J. McMahon:
P: (312) 335-8881
F: (312) 335-9299
E: bmcmahon@chinaonline.com |
