CIC Signs Agreement for a Proposed Joint Venture in China

May 3, 1993 — Communication Intelligence Corporation (CIC) (NASDAQ:CICI) Monday announced the signing of an agreement with the Nantong Electronics Development Investment Company in the People’s Republic of China.

The agreement outlines the principal terms of a proposed joint venture intended to market pen-based, business computer systems incorporating CIC’s end-user interface and handwriting recognition technology to China’s business and government sectors.

The operations of the proposed venture would be located in the city of Nantong. The objectives of the proposed venture would also include end-user training in collaboration with the Jiangsu Provincial Government and local universities in Nanjing, and the evaluation of other strategic opportunities to manufacture computer equipment that could be sold in China as well as other export markets.

Under the principal terms outlined for the proposed joint venture, CIC would invest approximately $2.6 million in cash and/or Common Stock and would contribute non-exclusive rights to specific CIC technologies, for which CIC would receive a 51% equity interest in the joint venture. Additional equity capital would be contributed by the CIC’s Chinese joint venture partner and it is anticipated that debt financing would be provided from certain Chinese banks. The proposed venture, currently scheduled to begin in June 1993, is subject to negotiation of remaining terms necessary for implementation.

Communication Intelligence Corporation (CIC) develops, markets, and licenses natural input computer technology – products that use pen and image for input. Founded in 1981, CIC today is a leading supplier of pen computing products to hardware manufacturers throughout the world, particularly its multilingual Handwriter Recognition System and Handwriter Dynamic Signature Verification software, and PenDOS and PenMac pen operating environments.

CIC’s products allow existing and new pen applications to operate on all major hardware and operating system plat-forms, including: Microsoft Windows for Pen Computing, GO’s PenPoint, and CIC’s own PenDOS and PenMac. CIC’s PenDOS and Handwriter Recognition System for PenDOS are distributed and exclusively sublicensed by IBM to pen computer manufacturers worldwide. CIC’s MacHandwriter, a desktop pen extension to the Macintosh computer, is distributed by Apple Japan, Inc.
CIC is headquartered in Redwood Shores, California, and has a subsidiary in Tokyo, Japan. The company is publicly traded and is listed on NASDAQ as CICI.

CONTACT:
Communication Intelligence Corp.
Germaine Gioia, 415/802-7754 (corporate communications)
Anne Butler, 415/802-7888 (investor relations)