“I believe that this quarter fully delivers on the promise we made almost two years ago to return Corel to a position of financial strength and sustainable profitability,” said Michael O’Reilly, Corel’s executive vice president, finance and chief financial officer. “I believe that with the turn-around now behind us, Corel is in a solid position for growth, and our outlook for Q4 remains positive.”

“We‘ve had a very strong quarter. We are pleased with the acceptance of our recent releases of CorelDRAW and WordPerfect and look forward to continued profitability with the development of these products for different segments of the market,” said Dr. Michael Cowpland, president and chief executive officer of Corel Corporation. “As well, we are very positive about the future of Linux and the delivery of our new operating system, Corel LINUX, at the end of this year.”

3rd Quarter 1999 Achievements

• In June, Corel announced that one of Canada’s largest law firms, Borden & Elliot, would be the first organization in North America to implement WordPerfect Office 2000, Standard Edition. Borden & Elliot was the first law firm in Canada to use the new suite.
• In June, Corel announced a worldwide licensing agreement with Hewlett-Packard Company, that would see Corel Print Office® OEM version included with some of HP’s CD-Writer Plus products. Corel Print Office OEM version is available with the HP CD-Writer Plus 755Oi and 7500e models in English, French, Italian, German, Spanish, Dutch and Brazilian Portugese.
• In June, Corel announced that Paradox® 9, the easy-to-use relational database designed for new users, experts and developers, was on store shelves. In August, Corel started shipping Paradox® 9 Developer's Edition, the new product designed specifically for Paradox developers.
• In June, Corel announced that it would be joining forces with Channelware, a spinoff of Nortel Networks, to rent its award-winning software applications to customers. The initiative involved net-based software application rentals of Corel Print House Magic 4 NetActive™ Version at Blockbuster locations in two test markets.
• In June, Corel announced that it had signed a deal with ShopNow.com to include ShopNow.com's technology in Corel eStore™. The inclusion of this technology means that Corel eStore has improved functionality and is a much easier shopping experience.
• In June, Corel announced that it signed a graphics deal with Mattel, Inc. Corel and the Broderbund unit of The Learning Company, a division of Mattel, signed a strategic licensing agreement in which Corel, through its GraphicCorp division, will provide Broderbund with the online rights to over 1,000,000 clipart, photo and Web images.
• In August, Corel and DirectWeb Inc., announced a partnership to bundle WordPerfect Office 2000 OEM and CorelDRAW Select Edition OEM with DirectWeb™-branded computers. DirectWeb offers a subscription-based service to provide a complete, user-friendly solution for personal computing and the Internet.

In the third quarter of fiscal 1999, Corel continued to demonstrate its commitment to Linux

• In June, Corel held the first meeting of the Corel Linux Advisory Council, a forum that allowed leaders in the open source and commercial Linux worlds to come together and discuss the challenges and opportunities facing Linux.
• In July, Corel hosted the first annual Ottawa Linux Symposium with Rebel.com. The Ottawa Linux Symposium, run by Achilles Internet Ltd., was open to anyone interested, and provided the opportunity for Linux developers and system administrators to expand their knowledge of the Linux operating system.
• In August, Corel and Rebel.com announced that they would be donating Linux software, hardware and services worth over a million dollars to the United Nations Development Programme’s (UNDP) Sustainable Development Networking Programme (SDNP). The donation will help strengthen computer and Internet capacity in developing countries where SDNP operates.
• In August, Corel unveiled its distribution of its Linux operating system, Corel® LINUX®, to the public for the first time. Corel LINUX will be available by the end of 1999 and Corel expects to deliver its office suite for Linux in early 2000. Corel is also currently developing its CorelDRAW® suite for Linux.

Third Quarter 1999 Awards

• Corel products won over 35 industry awards in the third quarter of 1999 alone. In June, Corel was declared the CRN Channel Champion by Computer Reseller News. A sampling of the other awards are as follows: WordPerfect Office 2000 won a WinList award in the August ‘99 Edition of Winmag.com; Corel Print Office 2000 Mac won a Hot Picks award in the July ‘99 Edition of MacToday; CorelDRAW 9 won a World Class Award in the July ‘99 Edition of PC World. CorelDRAW 9 won over 20 industry awards in the third quarter of 1999.

Corel Corporation
Corel Corporation is an internationally recognized developer of award-winning graphics and business productivity applications. Development of market-leading products such as the CorelDRAW® line of graphics applications and the Corel® WordPerfect® Suite of business tools is continually evolving to meet the demands of the corporate, retail and academic markets. Committed to performance, compatibility, value and open standards, Corel develops products for the Windows®, Macintosh®, UNIX®, Linux® and Java™ platforms. Corel’s common stock trades on The NASDAQ Stock Market under the symbol CORL and on the Toronto Stock Exchange under the symbol COR. For more information visit Corel’s Web site at www.corel.com.

Corel, WordPerfect, CorelDRAW and the Go Further logo are trademarks or registered trademarks of Corel Corporation or Corel Corporation Limited. Linux is a registered trademark of Linus Torvalds. UNIX is a registered trademark of The Open Group. All other product names are trademarks of their respective companies. All other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.