Nortel Licenses CIC's Pen Input Technologies to Bundle with Next Generation Wireless Communications Product

Business Wire, Dec 17, 1997

REDWOOD SHORES, Calif.--(BUSINESS WIRE)--Dec. 17, 1997-- Communication Intelligence Corp. (NASDAQ:CICI) announced today that Nortel (Northern Telecom/NYSE:NT) has licensed CIC's Jot(TM) and InkShrInk(R) pen input technologies for bundling with an upcoming Nortel wireless communication product.

Jot is a handwriting recognition system specifically optimized for writing on small handheld devices. Jot is expected to increase ease of use for speed dial and short message entry. InkShrInk, a powerful electronic ink data compression engine, will facilitate fast and economical electronic ink messaging through wireless networks.

This licensing agreement represents the successful conclusion of a previously announced collaboration between Nortel and CIC to define and develop a next generation communication product. The resulting wireless communications product is expected to offer improved ease of use and increased functionality relating to wireless messaging services.

"We believe that the potential of wireless communications has significantly increased as a result of our collaboration with Nortel," said Jeff Dao, senior vice president of marketing and OEM sales at CIC.

"We hope that this product will serve as a model for future offerings for the entire industry. Equipped with enhanced ease of use and expanded modes of communication, this wireless product may redefine what is considered standard in future cellular phones. We are honored to work with Nortel in this alliance to develop this exciting product and to supply Nortel with key technologies."

"Nortel is pleased to be working with CIC, the leader in pen input technologies and user interfaces," said Phil Terrett, global product manager, network telephones at Nortel.

"Our collaboration with CIC has allowed us to develop a compelling wireless phone which will also support new and attractive messaging capabilities. By combining natural user interfaces, expanded configurability, and new functionality, we believe that this product will stimulate significant growth in the wireless communications industry."

The Companies

About Nortel

Nortel works with customers worldwide to design, build, and integrate digital networks for information, entertainment, education, and business. Nortel has shipped and installed more digital lines worldwide than any other company.

Nortel's research capabilities around the world include a network of research and development facilities, affiliated joint ventures, and other collaborations fostering innovative product development and advanced design research in 14 countries. Nortel had 1996 revenues of $US 12.8 billion and has approximately 70,000 employees worldwide.

Nortel (Northern Telecom) is a major provider to digital mobile network operators throughout the world, including PCS 1900 in North America and worldwide, with GSM 900 and 1800 digital mobile networks. Nortel is also an emerging supplier of digital cellular terminals through its alliance and equity position with Matra of France. More information about Nortel and its products can be obtained on the Internet: http://www.nortel.com .

About CIC

Communication Intelligence Corp. develops, markets, and licenses natural input computer technology -- products that use pen and image for input. Founded in 1981, CIC is a leading supplier of pen computing software products to hardware manufacturers throughout the world.

The company's products include Handwriter(R) Recognition System and Jot(TM), user independent handwriting recognition systems, and the InkShrInk(R) electronic ink data compression software. CIC also developed the SigCheck(TM) dynamic signature verification software which facilitates reliable user authentication.

CIC also markets the Handwriter(R) line of peripheral input devices which enable users to have pen computing capabilities on their desktop and laptop personal computers.

CIC is headquartered in Redwood Shores, Calif., and has subsidiaries in Japan and China. CIC's stock is publicly traded on NASDAQ, symbol CICI. More information about CIC and its products can be obtained on the Internet: http://www.cic.com . -0-

Note to Editors: All company and product names used herein are trademarks or registered trademarks of their respective owners.

CONTACT: Communication Intelligence Corp.

Andrea Steller, 650/802-7888

asteller@cic.com

Maurice Boucher, 650/631-7888

mboucher@cic.com