CIC total revenue for fiscal 2011 increases 82% to $1,546,000

Communication Intelligence Corporation ("CIC" or the "Company") (OTCQB: CICI), a leading supplier of electronic signature solutions and the recognized leader in biometric signature verification, today reported total revenue of $1,546,000 for the year ended December 31, 2011, an increase of $695,000 or 82%, compared to total revenue of $851,000 in the prior year.

"We are pleased to report CIC's performance improvements in 2011 and look to 2012 and beyond with anticipation," stated Philip Sassower, CIC's Chairman and Chief Executive Officer. "Last year marked the beginning of a new chapter in the Company's history. We recruited a new management team, added key resources and designed and began the implementation of a revised strategy focused on partner integration, one-to-many sales leverage and improved recurring revenues. We launched new products and enhanced existing solutions. We passed a number of significant mileposts, including sequential revenue growth throughout the year, the launch of our Software-as-a-Service platform, our first recurring revenue transactions, the announcement of our first significant partner integration with Ebix (a leading provider of on-demand software to the insurance and financial sectors), to name a few. As the market for electronic signature solutions continues to expand, we remain confident that CIC is well-positioned to show improvement over time."

For the year ended December 31, 2011, operating expenses were $5,829,000, a decrease of $276,000 or 5%, compared to operating expenses of $6,105,000 in the prior year. This decrease was primarily due to a $1,009,000 charge for accelerated amortization of capitalized software costs in 2010, offset by a $700,000 increase in the amount of software development costs expensed in 2011.

For the year ended December 31, 2011, the net loss was $4,502,000, an increase of $343,000 or 8%, compared to a net loss of $4,159,000 in the prior year. This increase was primarily due to a 2010 gain from the revaluation of the Company's derivative liabilities, offset by 2010 charges related to the restructuring of the Company's debt and a $971,000 decrease in the Company's loss from operations for the year ended December 31, 2011, attributable mainly to the 82% increase in revenues between the two years.