CE SOFTWARE HOLDINGS, INC. REPORTS THIRD QUARTER RESULTS.

WEST DES MOINES, Iowa--(BUSINESS WIRE)--AUGUST 8, 1995 -- CE SOFTWARE HOLDINGS, INC. (NASDAQ NM Symbol: CESH) today announced results for the third quarter and nine months ended June 30, 1995.

As previously announced, revenues for the quarter ended June 30, 1995 were $2,757,000 versus $2,789,000 reported for the same quarter last year. The Company reported a net loss of $(615,000), or $(0.11) per share, compared to a net loss of ($2,268,000), or $(0.40) per share, for the comparable year-ago quarter. The corresponding 1994 quarter included an approximate $3.4 million charge reflecting the write-off of in-process research and development and other expenses related to the acquisition of the assets of Powercore.

For the nine months ended June 30, 1995, revenues increased 29% to $9,896,000 versus $7,659,000 for the same period last year. Net loss for the nine months was $(231,000), or $(0.04) per share, compared to a net loss of $(1,922,000), or $(0.35) per share, for the comparable year-ago quarter.

Commenting on the announcement, Ford Goodman, CE SOFTWARE, INC.'s President and CEO, said, "Revenues and earnings this quarter were below our expectations primarily due to less than anticipated sales of TimeVision Network Scheduler(TM). As previously stated, we are refocusing our sales and marketing efforts to increase sales in appropriate markets. It is important to note that our QuickMail(TM) E-mail product continues to strengthen its position as a leader in the Macintosh and cross-platform E-Mail markets, yielding a 26% increase in sales over the same quarter a year ago and a 45% increase for the comparable nine months."

CE SOFTWARE, INC., a subsidiary of CE SOFTWARE HOLDINGS, INC., develops and markets electronic mail, scheduling and workgroup applications software for Windows/DOS and Macintosh environments. With over 2.5 million users worldwide, CE Software has one of the largest installed bases of LAN-based software applications for workgroups. -0-

             CE SOFTWARE HOLDINGS, INC. AND SUBSIDIARIES
           Condensed Consolidated Statements of Operations
                              (Unaudited)

                         Three Months Ended       Nine Months Ended
                              June 30,                 June 30,
                            1995     1994          1995       1994

Net revenue               $2,757   $2,789        $9,896     $7,659
Cost of revenues             554      356         1,543      1,049
  Gross profit             2,203    2,433         8,353      6,610

Sales and marketing        1,368    1,135         3,797      2,595
General and administrative   947      727         2,878      2,227
Research and development     644      579         1,948      1,386
Acquisition expense            0    3,440             0      3,440
  Operating expenses       2,959    5,881         8,623      9,648
       Operating loss       (756)  (3,448)         (270)    (3,038)

Other income (expense):
   Equity in earnings of
   joint venture            (168)      12           (79)        77
   Miscellaneous              (1)      (2)            2         (1)
   Interest income            27       21            65         84
   Interest expense          (25)     (13)          (69)       (13)
       Loss before
       income taxes         (923)   (3,430)         (351)   (2,891)

Income tax benefit          (308)   (1,162)         (120)     (969)
  Net loss              $   (615)  $(2,268)        $(231)  $(1,922)

Net earnings (loss)
 per share              $  (0.11) $  (0.40)       $(0.04)  $( 0.35)

Average common shares
   outstanding             5,750      5,614        5,748      5,502

CONTACT: John G. Nesbett, Investor Relations 

Lippert/Heilshorn & Assoc.

[phone], Ext. 101

or

Curtis W. Lack

Chief Financial Officer

[phone]