KPMG Peat Marwick Resigns as CIC Auditor; Strategic Alliance Between CIC and KPMG BayMark Capital LLC to Continue
REDWOOD SHORES, Calif. — August 9, 1996 — Communication Intelligence Corp. (the "Company") announced today that KPMG Peat Marwick LLP ("Peat Marwick") advised the Company that it was resigning as the Company's auditor following discussions between Peat Marwick and the staff of the Securities and Exchange Commission ("SEC") regarding the independence of Peat Marwick in light of consulting services that have been provided to the Company by Peat Marwick and KPMG BayMark Capital LLC ("BayMark").
The relationship between the Company and BayMark is continuing.
In addition, the Company has been advised by the SEC staff that the effectiveness of the Company's pending Registration Statement on Form S-3 will be delayed while the SEC considers matters relating to Peat Marwick's independence in connection with its audit of the Company's 1995 financial statements.
In connection with the audit of the fiscal year ended Dec. 31, 1995, and during subsequent periods through Aug. 2, 1996 (the date of the resignation), there were no disagreements with Peat Marwick on any matter of accounting principles or practices, financial statement disclosure, auditing scope or procedures, which disagreements, if not resolved to their satisfaction, would have caused them to make reference in connection with their opinion to the subject matter of the disagreement.
The audit report of Peat Marwick on the consolidated financial statements of the Company as of and for the year ended Dec. 31, 1995 did not contain any adverse opinion or disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles.
The Company
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 Recognition System and SigCheck dynamic signature verification software, and the PenDos and PenMac pen operating environments. CIC markets software tools such as InkTools and Sign-it, which allow signature capture and verification within computer applications. CIC also markets the Handwriter for Windows, MacHandwriter peripheral input device products enabling 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 the OTC Bulletin Board, symbol CICI.
Note to Editors: Company and product names used herein are trademarks or registered trademarks of their respective companies.
CONTACT:
Communication Intelligence Corp.
Maurice Boucher, 604/689-8588