CE Software, Inc. Reports Third-Quarter Results.

Business Editors

WEST DES MOINES, Iowa--(BUSINESS WIRE)--Aug. 15, 2002

CE SOFTWARE, INC. (OTCBB:CESW) today announced financial results for its third quarter ended June 30, 2002.

CE Software reports a net loss of $28,000, or $0.02 per share, for the quarter. The same quarter a year ago saw a net loss of $287,000, or $0.20 per share. Revenues were $432,000 for the quarter ended June 30, 2002, compared to $335,000 for the same quarter a year ago.

The revenue increase was the result of our releasing three major upgrades--QuicKeys X, the winner of the Macworld Editors' Choice Award for Best Productivity Utility, for Macintosh OS X in October 2001; QuickMail in January 2002; and, QuicKeys for Windows in April 2002. "We are delighted with our customers' acceptance of these products." said John S. Kirk, president. "We released Swedish and German versions of the upgrade for QuickMail in June and July. In August we released an upgrade of QuickConference for the Macintosh OS X and a Japanese and German versions of QuicKeys X."

"We are pleased to report a second consecutive quarter of much improved results compared to a year ago," said John S. Kirk, president, "and that we do not have a four billion dollar accounting adjustment, not even a small one. We are continuing our commitment to develop software to enhance user productivity for small and mid-sized businesses while continuing to keep a tight control on our expenses."

Since 1981, CE Software, Inc. has developed automation utilities and e-mail software that save time and effort for millions of Microsoft Windows and Macintosh users. 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 on Form 10-KSB and quarterly Form 10-QSB.

(c) Copyright 2002 CE Software, Inc. All rights reserved. QuicKeys and QuickConference are registered trademarks of CE Software, Inc. QuickMail, InOut Tracker, CE Software, CE and the CE Software logo are trademarks of CE Software, Inc. All other brand or product names are trademarks of their respective owners.

                           CE SOFTWARE, INC.
                  Condensed Statements of Operations
                 (In thousands, except per share data)


                                Three Months Ended  Nine Months Ended
                                     June 30,            June 30,
                                   2002     2001       2002    2001
                                 -------  -------    -------  -------

Net revenues                        $432     $335     $1,228   $1,229
Cost of revenues                      64       62        155      230
                                 -------  -------    -------  -------
    Gross profit                     368      273      1,073      999

Operating expenses                   388      554      1,286    1,731
                                 -------  -------    -------  -------
    Operating loss                  (20)    (281)      (213)    (732)

Other expense                        (8)      (6)       (10)     (13)
                                 -------  -------    -------  -------
    Net loss                        (28)    (287)      (223)    (745)
                                 =======  =======    =======  =======

Net loss per share                 (.02)    (.20)      (.15)    (.59)

Weighted average common shares     1,455    1,455      1,455    1,262