CE Software Holdings, Inc. Reports Third Quarter Results.

WEST DES MOINES, Iowa--(BUSINESS WIRE)--July 17, 1998--CE SOFTWARE HOLDINGS, INC. (NASDAQ SC Symbol: CESH) today announced results for its fiscal 1998 third quarter, which ended June 30, 1998.

The company reports a net loss of $261,000, or $0.24 per share, on revenues of $905,000. The same quarter a year ago saw a loss of $242,000, or $0.23 per share, on revenues of $1,655,000. For the fiscal year to date, the company reports a net loss of $919,000, or $.84 per share, on revenues of $3,416,000. For the same period a year ago, the company reported a loss of $1,172,000, or $1.06 per share, on revenues of $5,329,000.

"CE reported a slightly smaller loss than last quarter as we were able to sharply decrease our expenses while continuing to make good progress toward our strategic goals," said Christian F. Gurney, president and CEO. "Product sales through domestic channels, primarily QuicKeys for Mac OS, did not meet our projections. International sales continue to be solid, although activity in Japan remains poor due to the ongoing economic crisis there. In general, sales of our QuickMail electronic mail product remain good.

Gurney continued: "We have started the fourth quarter with some important product announcements and more such announcements are on the way. Also announced today was a significant subsequent event that yielded CE a substantial gain. CE has sold its stake in Relevance Technologies, Inc. for an after-tax gain of approximately $4.5 million."

See separate press release for details of the Relevance Technologies sale.

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. All references to brand or product names are trademarks or registered trademarks of their respective holders. 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. -0-

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


                  Three Months Ended  Nine Months Ended
                         June 30,       June 30,
                    1998     1997     1998     1997
                   ------   ------   ------   -------

Net revenues       $ 905   $1,655   $3,416   $5,329
Cost of revenues     203      278      753      883
                   ------   ------   ------   -------
    Gross profit     702    1,377    2,663    4,446

Operating expenses   963    1,624    3,597    5,658
                   ------   ------   ------   -------
    Operating loss  (261)    (247)   (934)   (1,212)

Other income            -       5       16       40
                   ------   ------   -------  -------
    Loss before income
     taxes          (261)    (242)   (918)   (1,172)

Income tax expense     -          -      1        -
                   ------   -------  -------  --------
    Net loss       $(261)   $(242)  $(919)  $(1,172)
                   ======   =======  =======  =======

Net loss per
 share             $(.24)   $(.23)  $(.84)  $(1.06)

Weighted average common
 shares            1,096    1,075   1,096    1,108

CONTACT: CE Software, Inc., West Des Moines

Daniel E. McCann, [phone]

Chief Financial Officer

[e-mail]