Redwood Shores, CA, August 14, 2008 - (OTC BB: CICI) Communication Intelligence Corporation (“CIC” or the “Company”), a leading supplier of electronic signature solutions for business process automation in the financial industry and the recognized leader in biometric signature verification, announced today its financial results for the three and six-month periods ended June 30, 2008.

Total revenues for the three months ended June 30, 2008 were $407,000 compared to revenues of $555,000 in the corresponding prior year period, a decrease of $148,000, or 27%. Orders for the three month period ended June 30, 2008, however, were $703,000, $296,000 higher than revenue recognizable for that period and such orders are expected to be recognized as revenue in the third quarter of 2008. Revenues were primarily attributable to Fiserv/Integrasys, Palm Inc., Prudential Insurance, Sony Ericsson, Snap-on Credit, Misys Healthcare, Travelers Insurance and Wells Fargo Bank. The reduction in revenue primarily reflects lower royalties from a major natural input/Jot customer compared to the corresponding prior year period.

The Company’s net loss applicable to common stockholders for the three month period ended June 30, 2008 was $1,464,000, compared to a net loss of $843,000 for the corresponding prior year period. The operating loss for the three months ended June 30, 2008, before interest expense and amortization of the loan discount, and deferred financing cost, was $743,000 compared to an operating loss of $558,000 in the prior year period. The increase in the operating loss is due primarily to the decrease in revenue. Non-operating expenses for the three months ended June 30, 2008 increased by $436,000 to $721,000 compared to $285,000 for the corresponding prior year period. This increase is primarily attributable to Non-cash loan amortization expense, which increased by $65,000 to $280,000 for the three months ended June 30, 2008, compared to $215,000 in the corresponding prior year period and to a non-cash expense for the beneficial conversion feature of the convertible preferred shares issued in June 2008 of $371,000. There was no such charge in the prior year comparable period. The basic and diluted loss per share was $0.01 on approximately 129 million weighted average common shares outstanding for the three months ending June 30, 2008 and $0.01 on approximately 108 million shares outstanding for the comparable prior year period.

Total revenues of $837,000 for the six months ended June 30, 2008 decreased $52,000, or 6%, compared to revenues of $889,000 in the corresponding prior year period. The Company’s net loss applicable to common stockholders for the six months ended June 30, 2008 and 2007 was $2,314,000 and $1,650,000, respectively. The increase in the net loss is due primarily to the factors stated above for the three month period ended June 30, 2008. The basic and diluted loss per share was $0.02 on approximately 129 million weighted average common shares outstanding for the six months ending June 30, 2008 and $0.02 on approximately 108 million shares outstanding for the comparable prior year period.

“We continue to experience expanding demand and usage of our electronic signature technology in our target financial services market despite the weakened economy. Recent market surveys by independent technology and market research firms such as Forrester Research conclude that US banks and lenders are challenged with the need to increase revenue while improving the effectiveness and efficiency of their processes in the face of increased regulatory and compliance demands exacerbated by the recent sub prime and credit crisis. We believe this crisis is enhancing the growing awareness that electronic signature technology offers solutions to the challenges the financial industry is facing. This is creating an up-tick in proposal activity, with both the financial institutions and with top tier solution providers who are the source of electronic signature based applications that these end-users are looking to rapidly implement. We are now positioned to respond with both hosted (Software as a Service) or on-premise deployment models,” stated Guido DiGregorio, CIC’s Chairman & CEO. “Of note, we recently received an order from a top five property and casualty insurance company. In addition, we signed an agreement with a leading top tier solution provider to the financial services industry which we believe is of strategic significance including the potential for near term and future revenue generation. Our recently completed and previously announced financing allows us to continue and more fully participate in the eSignature proposal activity we are experiencing.”

Selected financial information follows. Detailed corporate and financial information is available on CIC’s website at 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 work flow in their eBusiness processes by enabling them with “The Power to Sign Online®” with multiple signature technologies across virtually all applications in SaaS and fully deployed delivery models.

Industry leaders such as AIG, Charles Schwab, Prudential, Nationwide (UK), Snap-on Credit and Wells Fargo chose CIC’s products to meet their needs. CIC has deployments with over 400 channel partners and enterprises worldwide representing tens of thousand of users, with over 500 million electronic signatures captured, eliminating the need for over a billion pieces of paper. 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

Forward Looking Statement
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. These forward-looking statements speak only as of the date hereof and the Company disclaims any intent or obligation to update these forward-looking statements.

CIC and its logo and The Power to Sign on Line are registered trademarks of Communications Intelligence Corporation. All other trademarks and registered trademarks are the property of their respective holders.

COMMUNICATION INTELLIGENCE CORPORATION
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Contact: Frank V. Dane
Phone: 650-802-7737
Email: fdane@cic.com