CIC Signs PenOp Ltd. Asset Acquisition Agreement.

REDWOOD SHORES, Calif., Oct. 3 /PRNewswire/ --

Communication Intelligence Corporation ("CIC"), (Nasdaq: CICI) the leading supplier of natural input and electronic signature solutions, announced today that it has signed a definitive asset purchase agreement with PenOp Ltd., a global provider of e-signature software, for the acquisition of certain of its assets, including its intellectual property, certain strategic alliance partnership agreements, customer lists and prospects, in exchange for 4.7 million shares of CIC's common stock. Consummation of the transaction is subject to various conditions, and is expected to close on or about October 9th, 2000. CIC will provide more details regarding this transaction and go-forward operating plans after the formal closing.

About CIC

Communication Intelligence Corporation (CIC) is the leading supplier of natural input and electronic signature solutions for wireless Internet and e-Commerce applications. The Company's core software technologies include multilingual handwriting recognition systems, dynamic 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 wireless electronic devices ranging from handheld companions to cellular phones. Key licensees of the Company's technologies include Ericsson, Fujitsu, Hitachi, Mitsubishi, National Semiconductor and Symbian. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information, please visit its website at www.cic.com.

About PenOp

PenOp is a global leader in providing legally binding, technology-neutral electronic signature technology for eBusiness. PenOp's patented, online signing process gathers the Digital Evidence(TM) transcript required to replace pen and paper signatures. A pioneer in handwritten digital signatures, PenOp serves customers in 32 countries with Ready to Sign(TM) solutions built into e-commerce, forms management and workflow applications by major commercial and government organizations. PenOp markets its products with its strategic alliance partners including: Adobe Systems, Inc., Citrix Systems Inc., Microsoft Corporation, Palm Computing, Entrust Corporation, Xcert International, Valicert, Documentum Inc., FileNET Corporation, JetForm Corporation, OpenText, Optika, Siebel Systems Inc., Staffware, Wacom Technology Corporation and WinTime Electronics Corp.

PenOp solutions are available for Palm Computing(TM) and Microsoft(R) Windows CE, NT, 95, 98 and 2000 platforms. To date hundreds of businesses and government agencies have achieved paperless processes using PenOp products to seal a contract, open a new account or sign a receipt without paper. For more information about PenOp visit their website at www.penop.com.

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 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.

NOTE: CIC and, its logo are registered trademarks of Communication Intelligence Corporation. All other trademarks are properties of their respective owners.

CONTACT: Chantal Eshghipour of Communication Intelligence Corporation, 650-802-7740, or investorrelations@cic.com.