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Communication Intelligence Corporation Closes $3.6 Million Financing
Date:6/6/2008

ated to that Additional Lender. Such cancelled debt was due in September and December of 2008 and carried interest at the rate of 15% per annum. The Preferred Shares are entitled to an 8% dividend per annum, payable quarterly in arrears in cash or in additional Preferred Shares at the Company's option and have a liquidation preference of $1.00 per share over common stock. The Preferred Shares are convertible into common stock at the conversion price of $0.14 per share any time after the Company secures approval from its stockholders to increase the number of authorized shares of common stock, which approval is expected to be secured at the Company's upcoming annual meeting of stockholders, to be held on June 30, 2008. If the Company is unable to secure such approval, it will be an event of default under the Loan, which would permit acceleration of the Loan, and the Company will be required to make a rescission offer to the holders of the Preferred Shares who upon acceptance of such offer, will receive a note identical to the original note exchange for the Preferred Shares. The Company also entered into a Registration Rights Agreement requiring it to register the common shares underlying the warrants and Preferred Shares issued as described above.

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(R)" 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 enterprise
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SOURCE Communication Intelligence Corporation
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