Advanced Handwriting Recognition Technology Adopted for Palm OS

REDWOOD SHORES, Calif. and SUNNYVALE, Calif., Jan. 13 /PRNewswire- FirstCall/ -- Communication Intelligence Corporation (Nasdaq: CICI) ("CIC"), the leader in electronic signature, biometric verification and natural input solutions and PalmSource Inc., the Palm OS(R) subsidiary of Palm Inc. (Nasdaq: PALM) and provider of the world's most popular operating system for handhelds and smart phones, announced today a licensing agreement for CIC's Jot(R) handwriting recognition software.

Under this agreement, "Graffiti(R) 2 powered by Jot," will be embedded by PalmSource in current versions of its Palm OS platform provided to licensees of its operating system. The new Graffiti 2 handwriting software supports an intuitive, more natural form of input, minimizing learning time for new users and easing the transition for experienced users.

"Jot has established the kind of broad based consumer acceptance in the Palm community that made it a natural choice for us," said David Nagel, president and chief executive officer of PalmSource. "Graffiti 2 is a superior handwriting recognition system that will enhance the ease of use that Palm OS is known for. We expect this technology to appeal to a wide range of users who will be able to easily take notes and write memos on their Palm Powered(TM) devices."

Jot is a character-based recognizer that was developed by CIC after years of research in the field of pattern recognition. The product is ideally suited for portable computing because it offers a fast and highly accurate means of entering text on small devices. Jot recognizes both English and Roman-based European characters in a very natural way supporting broader market appeal for these products.

"We are extremely pleased that PalmSource, the leading supplier of operating systems for handheld devices and smart phones, chose Jot to enhance its competitive edge," stated Guido DiGregorio, CIC's chairman and chief executive officer. "Based upon the experience we gained over the past several years by providing Jot directly to the Palm OS developer and end user community we believe that Graffiti 2 powered by Jot will provide Palm OS users the most natural and intuitive experience possible. Now that we have established a more strategic relationship with PalmSource, we are optimistic about the additional potential associated with our wide range of natural input and electronic signature products that are currently available for Palm users."

In addition to Jot, CIC's broad range of product offerings that support Palm Powered devices include: WordComplete(R)-text entry utility, QuickNotes(TM) -- electronic note-taking solution, InkSnap(TM) -- dynamic ink scaling for handwritten notes on small form factor devices, Sign-On(TM) -- the first security utility for Palm Powered devices that utilizes biometric signature verification to help protect the user's data from tampering and theft, and InkTools(R) for Palm OS, a software development kit (SDK) that enables the implementation of biometric signatures for electronic workflow, security and e-Sign compliant applications. For more detail information please visit CIC's website at www.cic.com.

About CIC

Communication Intelligence Corporation is the leading supplier of electronic signature, biometric security and natural input solutions focused on emerging, fast growth, applications including paperless workflow, smart wireless devices and e-Commerce enabling the world with "The Power to Sign Online(TM)." The Company's core software technologies include multilingual handwriting recognition systems, biometric signature verification, natural messaging, and operating system extensions that enable pen input. CIC's products are designed to increase the ease of use, functionality, and security of electronic devices and e-business processes. CIC sells directly to OEMs and Enterprises and has products available through major retail outlets such as, CompUSA, Staples, OfficeMax, Office Depot, key integration partners or direct via our website. Industry leaders such as Ericsson, Fujitsu, Hitachi, Handspring, Palm Inc., Siebel Systems, Electronic Data Systems (EDS), IBM, Charles Schwab and Prudential have licensed the company's technology. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information, please visit website http://www.cic.com .

About PalmSource

PalmSource is the company behind Palm OS, the world's most popular operating system for handhelds and smart phones. Licensed by industry leaders -- including Acer, AlphaSmart, ARM, ATI, Fossil, Garmin, GSL, Handera, Handspring, HuneTec, Intel, Kyocera, Legend, MediaQ, Motorola, Palm, Samsung, Sony, Symbol, Texas Instruments -- Palm OS has been shipped on more than 25 million handhelds and smart phones, and given rise to a huge community of users, enterprises, developers and manufacturers, who together make up the Palm Economy. PalmSource's new headquarters are located at 1240 Crossman Ave. in Sunnyvale, Calif. PalmSource is a subsidiary of Palm, Inc. (PALM). More information about PalmSource, Inc., is available at www.palmsource.com. Information about Palm, Inc. is available at www.palm.com/aboutpalm.

NOTE: Palm OS and Graffiti are registered trademarks and Palm Powered is a trademark of PalmSource, Inc., a wholly owned subsidiary of Palm, Inc. CIC, its logo, Jot, InkTools and WordComplete are registered trademarks. The Power to Sign Online, QuickNotes, InkSnap, and Sign-On are trademarks of Communication Intelligence Corporation. All other trademarks are properties of their respective owners.

Certain statements contained in this press release, including without limitation, statements containing the words "believes," "anticipates," "hopes," "intends," "expects," and other words of similar import, constitute "forward-looking" statements within the meaning of the Private Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors, which may cause actual events to differ materially from expectations. Such factors include the following (1) technological, engineering, quality control or other circumstances which could delay the sale or shipment of the products; (2) economic, business, market and competitive conditions in the software industry and technological innovations which could affect the Company's business; (3) the Company's inability to protect its trade secrets or other proprietary rights, operate without infringing upon the proprietary rights of others or prevent others from infringing on the proprietary rights of the Company; and (4) general economic and business conditions and the availability of sufficient financing.

SOURCE PalmSource, Inc.