To: Keoki Koga who wrote (2055 ) 10/24/2001 9:22:20 AM From: leigh aulper Read Replies (1) | Respond to of 2082 Zi's eZiText(tm) to be embedded in Vacom Wireless CDMA handsets Calgary, AB (October 24 2001) - Zi Corporation (NASDAQ: ZICA) (TSE: ZIC) has entered into an eZiText(tm) licensing agreement with Compal Electronics, Inc. for use in CDMA (code division multiple access) handsets to be designed by Vacom Wireless, Inc., a company which Compal Electronics holds an 80 per cent stake. "Mobile handset production is set to become a large growth area for Asian manufacturers. Virtually all notebook computer production has been outsourced to manufacturers in Asia and we expect the same trend to carry across to mobile handset production," said, Mr. Tim Chou, Sales Senior VP, Compal Electronics. "Vacom Wireless is set to capture the market potential for CDMA handsets and we look forward to having eZiText(tm) capabilities in these products." Vacom Wireless acts as the CDMA development centre for Compal Electronics and currently has three CDMA handsets available on the market, VC-1, VC-3 and VC-5. These handsets support multiple languages and offer short messaging capability. eZiText(tm) will be implemented in CDMA handsets targeted for the Chinese market. "China's first CDMA network will soon be established. With the CDMA subscriber growth that is expected as a result, China is the ideal target market for Vacom Wireless CDMA products," said, Andy Suen, Director, Vacom Wireless. "To support our movement into the Chinese market we are focused on using the best technologies, such as eZiText(tm) to use to build our products." Text input requirements in China are stringent. Zi has guided many manufacturers who want to penetrate the Chinese mobile market through the complexities of Chinese text entry standards. With Zi's eZiText(tm) Chinese solution, manufacturers can implement a text entry solution that is certified by the State Language Commission and meets all the necessary standards for Chinese text entry. "By working hand-in-hand with the development team at Vacom Wireless, Zi can illustrate the capabilities of eZiText(tm) for this particular implementation and how eZiText(tm) can bring value to other elements in their product line," says Gordon Tsang, director, Sales, Zi Corporation. "With over 32 languages available, eZiText(tm) can provide manufacturers with an intuitive user interface for almost any market and almost any device." Vacom Wireless was established by Compal Electronics in 1999. Vacom specializes in the area of CDMA development with a research and development centre located in Korea and manufacturing facilities in Taiwan and China. Compal Electronics is a leading manufacturer of high-quality notebook computers, CRT and LCD monitors supplying companies such as Toshiba, HP and Dell. At year-end 2000, Compal was the third largest notebook manufacturer in Taiwan with 1.8 million units. In addition to developing and manufacturing notebook computers, Compal produces PDA, GSM and GPRS products. With a majority share in Vacom Wireless, Compal broadens its range of information and communication products to include CDMA handsets.