Communication Intelligence Corp. and Philips Semiconductors Join Forces to Provide Pen Computing Solutions for Consumer Electronics Manufacturers

The Original Press Release

Communication Intelligence Corp. and Philips Semiconductors Join Forces to Provide Pen Computing Solutions for Consumer Electronics Manufacturers

REDWOOD SHORES, Calif. — April 9, 1997 — Communication Intelligence Corp. (CIC) (NASDAQ:CICI) and Philips Semiconductors announced today that they will combine technologies to provide solutions for manufacturers of consumer electronics devices by combining CIC's software with Philips' semiconductors.

As a result of this collaboration between the two companies, it is expected that CIC's products, Jot(TM) and QuickNotes(TM), will become part of the TwoChipPIC Plus reference design for Windows CE.

Working together, Philips Semiconductors and CIC can provide faster time to market for manufacturers wishing to incorporate handwriting recognition, electronic ink compression and dynamic signature verification into handheld personal computers, personal digital assistants, personal communicators, web phones or smart phones running the Windows CE operating system.

CIC, a leader in handwriting recognition and other pen input technologies, recently announced two new products for handheld consumer electronics devices — Jot, an ultra-small, ultra-fast handwriting recognition engine, and QuickNotes, an electronic ink note-taking application. Both products are available for the Windows CE operating system and will be ported to other operating systems.

Philips announced yesterday its TwoChipPIC Plus, a higher performance version of its award-winning chip solution introduced last September. The TwoChipPIC Plus has been specifically designed for handheld personal computers.

"We believe that the combination of our technologies with Philips' will help OEMs to create more effective solutions in less time and with less risk," said Jeff Dao, vice president marketing and sales of CIC. "We have been very impressed with the performance of our software on the Philips Velo (which uses the TwoChipPIC solution), and we are delighted to work closely with Philips to make such performance available to other manufacturers of consumer electronics devices."

"CIC's pen enabling technologies are one of the best we have seen. Such capabilities are critical to maximize ease of use and functionality for small form factor consumer electronics devices. We believe that adding this functionality to our reference design provides our customers with a higher level of integration to facilitate their own product development," said Stefan Braken-Guelke, general manager of the PDA/PIC product group for Philips Semiconductors.

The Companies

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 the multilingual Handwriter(R) Recognition System and SigCheck(TM) dynamic signature verification software, and the PenDOS(R) and PenMac(R) pen operating environments.

CIC markets software tools such as InkTools(TM) and Sign-it(TM), which allow signature capture and verification within computer applications; Handwriter(R) line of peripheral input devices, which enable PC users to have pen input capabilities on their desktop and laptop personal computers; software products for the Microsoft(R) Windows(RM) CE operating system platform — Jot, a compact handwriting recognition system and QuickNotes, a fast and simple electronic mobile notetaker application. CIC is headquartered in Redwood Shores and has subsidiaries in Japan and China. CIC's stock is publicly traded on Nasdaq, symbol CICI.

For more information about CIC's product lines, please visit our corporate web site at http://www.cic.com — or call our toll-free sales line at 1-800-888-8CIC (1-800-888-8242).

Philips Semiconductors Inc., a subsidiary of Philip Electronics North America and an affiliate of Philips Electronics NV, headquartered in Eindhoven, The Netherlands, is the ninth largest semiconductor supplier in the world. Philips Semiconductors' innovations in digital audio, video and mobile technology position the company as a leader in the consumer, multimedia and wireless communications markets.

Sales offices are located in all major markets around the world and are supported by regional customer applications labs. Additional information on Philips Semiconductors can be obtained by accessing the home page at http://www.semiconductors.philips.com.

Note: Company and product names used herein are trademarks or registered trademarks of their respective companies. Microsoft and Windows are either registered trademarks or trademarks for Microsoft Corporation in the U.S. and/or other countries. Screen shots available upon request.

CONTACT:
Communication Intelligence Corp., Redwood Shores
Beverly Scott, 415/802-7754 (Marketing Communications)
Maurice Boucher, 415/631-7888 (Investor Relations)