CE Software, Inc. Receives $6.2 Million From Sale of Stake in Technology Company.

WEST DES MOINES, Iowa--(BUSINESS WIRE)--July 17, 1998--

Merger of Relevance Technologies and Documentum Yields

Substantial Return on Investment

CE SOFTWARE, INC., wholly owned subsidiary of CE Software Holdings, Inc. (NASDAQ SC Symbol: CESH), today announced that its equity investment in Relevance Technologies, Inc. ("Relevance") has been sold to Documentum, Inc. ("Documentum") as part of the merger of Relevance into Documentum.

Prior to the merger, CE Software, Inc. ("CE") owned 1,470,000 shares of Relevance's common stock. A team of former CE employees and former CE president Ford Goodman founded Relevance in 1996. CE received its stock in Relevance in exchange for a license to certain CE technologies and $75,000 in seed capital. Over the past two years, San Francisco-based Relevance has developed a highly sophisticated, enterprise-wide knowledge management solution designed to integrate and organize information from different sources.

Documentum (NASDAQ NM Symbol: DCTM), of Pleasanton, Calif., markets and supports a family of intranet and client/server software-based solutions that enable companies to share and manage vital corporate knowledge. Prior to the merger, Documentum held a minority interest in Relevance. As a result of the merger, Documentum has acquired Relevance's remaining capital stock for $35 million. Relevance stockholders will receive $3.5 million in cash plus Documentum common stock valued, per the merger agreement, at $31.5 million. The agreement values the stock at an average market price of $48.30 per share.

As the second-largest shareholder, CE receives consideration totaling $6,189,000, which includes $691,000 in cash and 113,822 shares of Documentum's common stock. This stock, when valued in accordance with the $48.30 per share price established by the agreement, is worth $5,498,000. The agreement requires that approximately 12.6 percent of the stock received be held in escrow for one year. The shares in escrow are at risk pursuant to the terms of the merger agreement. The remaining shares are to be registered for resale on a Form S-3 registration statement as soon as is practicable.

In its fourth quarter ending September 30, 1998, CE estimates reporting an after-tax gain of approximately $4.5 million on the sale of Relevance stock, which includes use of all CE's current and carryforward net operating losses. Since 1996, CE's ownership in Relevance has been carried at zero value under the equity method of accounting.

Christian F. Gurney, CE president and chief executive officer, said: "We extend our congratulations to Mr. Goodman and the Relevance team for making their compelling vision a reality. We are also gratified by this opportunity to enhance the value of CE for our shareholders."

CE Software, Inc., a wholly owned subsidiary of CE SOFTWARE HOLDINGS, INC. (NASDAQ SC Symbol: CESH), develops comprehensive, client/server electronic mail systems for Windows NT, Windows 95 and Mac OS, as well as personal productivity, desktop automation and information management software for Mac OS and Windows. For more information: [phone] or www.cesoft.com.

This release contains forward-looking information that is subject to certain risks, trends and uncertainties and actual developments may differ materially from those projected. For a discussion of important factors that could affect the Company's results, the reader is encouraged to refer to the Company's annual report or Form 10-KSB and quarterly Form 10-QSB.

CONTACT: CE Software, Inc., West Des Moines

Daniel E. McCann, 515/221-1801

[e-mail]