Zi announces successful Phase One of the Virgin Mobile Qix trial in the UK with revenue gains of a third

“We have collected and analysed our usage data and are very pleased with the ARPU results of the trial. Virgin Mobile has measured a minimum monthly ARPU improvement of 33% for users with QIX-enabled handsets, up until the end of April 2006. We look forward to working with Zi and our continued use of Qix”, commented Graeme Hutchinson, sales and marketing director at Virgin Mobile. Qix has been bundled with Virgin Mobile’s Nokia 6630 handsets since the initial phase and the operator will continue to offer Qix to its subscribers.

Virgin Mobile users with trial handsets demonstrated a sustained increase in the use of voice calls, SMS, MMS, and internet data services during the trial period. Operators around the world are looking for ways to increase ARPU, reduce subscriber churn and improve the adoption of new services. “I believe that this trial with Virgin Mobile has shown that Qix can deliver on all of these goals,” said Milos Djokovic, Chief Operating Officer of Zi Corporation. “Users are finding mobile phones increasingly difficult to navigate, but Qix cuts through the complexity, encouraging users to discover the latest services available”.

For the first time operators and OEMs can provide users with an intuitive and fast search and discovery capability similar to an Internet search engine that helps Web surfers find what they are looking for. Qix is an innovative mobile search and service discovery engine that operates from the dialling screen of the phone. It combines predictive dialling and spelling to rapidly discover contacts, features and services on a mobile phone.

About Qix

Qix is a compelling new search and service discovery engine that sits on top of user-platform environments and operating systems. Qix provides a quick and easy method for accessing a phone's full set of features, applications and services without having to remember where and how to find them via a phone's built-in menu structure. Qix intuitively accesses a phone's features directly from the idle/dialling screen using the standard keypad. Visit www.zicorp.com/qix for more product information.

About Zi Corporation

Zi Corporation (www.zicorp.com) is a technology company that delivers intelligent interface solutions to enhance the user experience of wireless and consumer technologies. The company provides device manufacturers and network operators with a full range of intuitive and easy-to-use input solutions, including: eZiText® for one-touch predictive text entry; eZiTap™ for intelligent multi-tap entry; eZiType™ for keyboard prediction with auto-correction; Decuma® for predictive pen-input handwriting recognition; and the Qix search and service discovery engine to enhance the user experience and drive service usage and adoption. Zi’s product portfolio dramatically improves the usability of mobile phones, PDAs, gaming devices and set-top boxes and the applications on them including SMS, MMS, e-mail and Internet browsing. Zi supports its strategic partners and customers from offices in Asia, Europe and North America. A publicly traded company, Zi Corporation is listed on the Nasdaq National Market (ZICA) and the Toronto Stock Exchange (ZIC).