Press ReleaseSource: Communication Intelligence Corporation

Communication Intelligence Corporation Reports Fourth Quarter and Fiscal 2007 Results
Monday March 10, 9:00 am ET

REDWOOD SHORES, Calif., March 10 /PRNewswire-FirstCall/ -- (OTC Bulletin Board: CICI - News) -- Communication Intelligence Corporation ("CIC" or the "Company"), a leading supplier of electronic signature solutions for the financial industry and the recognized leader in biometric signature verification, announced today its financial results for the fourth quarter and the year ended December 31, 2007.

Revenue for the three months ended December 31, 2007 increased 63% to $800,000, compared to $492,000 for the corresponding prior year period. The Company reported a net loss of $644,000, or $0.01 per share on 129 million weighted average shares outstanding for the fourth quarter ending December 31, 2007, compared to a net loss of $881,000, or $0.01, on 107 million weighted average shares outstanding for the corresponding prior year period. The decrease in net loss is primarily due to an increase in revenue during the fourth quarter of 2007 compared to the corresponding period in 2006.

Revenue for the year ended December 31, 2007 was $2,145,000 compared to $2,342,000 for the year ended December 31, 2006. The decrease in revenues is primarily due to a decrease in maintenance revenues compared to the prior year period. Revenue for 2007 was primarily attributable to Access Systems of Americas, Inc. (formerly PalmSource, Inc.), Advanced Computer Technology, AEGON/World Financial Group, AIG/AGLA, Bank of America, Charles Schwab & Co., eCom Asia Pacific, Fidelity National Info Services/LSI, Fiserv/IntergraSys, IA Systems, Misys Healthcare Systems, Oracle Corporation, Prudential Financial Inc., Snap-on Credit LLC, Sony Ericsson Corp., Tennessee Valley Authority, and Wells Fargo Bank NA.

The net loss for the twelve months ended December 31, 2007 was $3,399,000, or $0.03 per share, on 114 million weighted shares outstanding compared to a net loss of $3,286,000 or $0.03 per share on 107 million weighted average shares outstanding for the corresponding prior year period. The increase in the net loss is primarily due to increases in interest expense and noncash amortization expense associated with debt financing and decreased revenue.

"As stated earlier fourth quarter revenue was up 63% over the corresponding prior year period, and up 75% over the prior quarter," stated CIC's Chairman & CEO Guido DiGregorio. "Although the fourth quarter of 2007 was significantly better than prior quarters, we did not achieve the orders we had anticipated. We experienced delays in closing several significant orders in the last half of 2007, with negotiations ongoing. The good news is that during 2007 many top tier financial institutions formed high level teams to evaluate enterprise wide solutions for the adoption of eSignature and document automation across the various business segments of these enterprises which affords CIC the potential for high revenue generating deployments. However, because these companies are typically highly compartmentalized, and run as separate profit and loss centers, they need and desire stages of deployment including proof of concepts (POC) and pilots to ensure a smooth and effective adoption process for the enterprise-wide rollouts. 2007 was a year of significant progress with top tier channel partners that provide eSignature based document and process automation solutions. We believe our focus on joint selling efforts and attaining embeds with these leading financial service solution providers is fundamental to capturing the lion's share of the eSignature market and fundamental to accelerating and sustaining our revenue growth. Our successful deployments with leading financial enterprises with proven ROIs, our multi-model enterprise class eSignature product suite that addresses face-to-face, call center and web applications, together with our co-destiny, integrated and non-competitive strategy with these leading solutions providers, we believe, has uniquely positioned CIC as the eSignature partner of choice. eSignature sales activity in the last half of 2007, as measured by the revenue potential reflected in formal proposal and quotation requests, was at the highest level in the Company's history. We have not experienced any change in the positive and increasing momentum in proposal activity from the financial services industry based on the current or forecasted economic environment. In fact, the mortgage/lending crisis is driving several major opportunities. We believe the benefits of the paperless enterprise, including significant expense reduction and the compressing of business processes, are viewed by financial enterprises as strong rationale to adopt our eSignature/automation technology. In October, 2007, Frost & Sullivan awarded CIC the 2007 Global Frost & Sullivan Award for Market Leadership in the dynamic signature verification market. The Frost & Sullivan Award, the result of an in-depth analysis of the market by an experienced industry research team, speaks to the leadership and outstanding achievement CIC has exhibited in 'Excellence in Best Practices' used to recognize companies that have achieved superior performance in areas including leadership, technological innovation, customer service and strategic product development for the Worldwide Signature Verification Market."

For a fuller discussion of the progress made and the challenges CIC faces please refer to CIC's 2007 Annual Report on Form 10-K, which CIC expects to file on or before March 13, 2008.

Selected financial information follows. Detailed corporate and financial information is available on CIC's website at http://www.cic.com.

About CIC

Communication Intelligence Corporation ("CIC") is a leading supplier of electronic signature solutions for business process automation in the Financial Industry and the recognized leader in biometric signature verification. CIC's products enable companies to achieve truly paperless workflow in their eBusiness processes by enabling them with "The Power to Sign Online®" with multiple signature technologies across virtually all applications. Industry leaders such as AIG, Charles Schwab, Prudential, Nationwide (UK), Snap-on Credit and Wells Fargo chose CIC's products for deployment. CIC sells directly to enterprises and through system integrators, channel partners and OEMs. CIC is headquartered in Redwood Shores, California and has a joint venture, CICC, in Nanjing, China. For more information, please visit our website at http://www.cic.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 Securities Litigation Reform Act of 1995. Such statements involve known or unknown risks, uncertainties and other factors, which may cause actual events to differ materially from expectations. Please see our annual and quarterly reports, which are posted on our website, for a discussion of these risk factors.

CIC, its logo and The Power to Sign Online are registered trademarks. All other trademarks are properties of their respective owners.



                    COMMUNICATION INTELLIGENCE CORPORATION
          Selected Consolidated Statements of Operations Information
                   (In thousands, except per share amounts)

                                  Fourth Quarter Ended   Year Ended
                                  (unaudited)            (unaudited)
                                    12/31/07   12/31/06   12/31/07   12/31/06

    Revenue                             $800       $492     $2,145     $2,342

    Total cost of sales                  205         98        525        250

    Gross profit                         595        394      1,620      2,092

    Total operating expenses           1,037      1,123      3,813      4,649

    Operating loss                      (442)      (729)    (2,193)    (2,557)

    Other income (expenses)               32        (35)        47         48

    Interest expense, including
     amortization of loan discount
     and deferred financing costs       (234)      (117)    (1,253)      (777)

    Net loss                           $(644)     $(881)   $(3,399)   $(3,286)

    Basic and diluted net loss
     per common share                 $(0.01)    $(0.01)    $(0.03)    $(0.03)

    Basic and diluted weighted
     average common shares
     outstanding                     129,057    107,374    113,960    107,374



               Selected Consolidated Balance Sheets Information
                                (In thousands)

    NOTES:
                                                12/31/07         12/31/06

    Cash & cash equivalents                       $1,144             $727

    Total current assets                           1,731            1,319

    Total assets                                   6,475            6,126

    Deferred revenue (a)                             431              404

    Total current liabilities (b)                  2,598            2,135

    Total short-term debt (c)                      1,370            1,154

    Long-term debt (d)                                96              334

    Stockholders' equity                           3,781            3,584

    (a) Deferred revenue consists principally of service contact revenues.
    (b) Includes deferred revenue and short term debt.
    (c) Net of $350 unamortized fair value assigned to warrants at
        December 31, 2007 and $228 unamortized fair value assigned to
        warrants and beneficial conversion feature at December 31, 2006.
    (d) Net of unamortized fair value assigned to warrants of $21 and $266 at
        December 31, 2007 and 2006, respectively.



    Contact:  Frank Dane
              Phone:  650-802-7737
              Email:  fdane@cic.com



Source: Communication Intelligence Corporation


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