COREL/NETBLENDER TO DELIVER HDDVD/BLU-RAY DISC SOLUTION.

Corel Corporation (NASDAQ:CREL; TSX:CRE), a leading developer of graphics, productivity and digital media software, and NetBlender has announced a new partnership to deliver tools for next generation DVD authoring to the professional market. NetBlender will integrate Corel's PureHD Authoring Multiplexer into the upcoming release of DoStudio, which creates the Advanced Content Layer for HD DVD and Blu-ray Discs. The combined offering, called DoStudio MX, will create a complete solution for HD DVD and Blu-ray Disc creation at an affordable price.

Corel's PureHD Multiplexer Technology delivers a complete end- to-end high definition video content solution for optimum quality with minimum post production interruption. The technology streamlines the process of capturing high definition content and maintains crisp content quality at every stage, editing, authoring and final production. Working in conjunction with NetBlender's DoStudio advanced layer technology, videographers and production teams can easily add a new level of interactive features that consumers are coming to expect in their HD DVD and BD movies.

"The combination of NetBlender's DoStudio with Corel's PureHD Authoring Multiplexer creates a compelling solution for professional developers at all levels of the industry," said John Harrington, NetBlender CEO. "We have created a complete HD toolset that empowers the creative designer while increasing efficiency and reliability across platforms."

"We are pleased to partner with NetBlender to provide professional users with the tools and flexibility they demand to drive their creativity to new levels," said Blaine Mathieu, VP and GM, Products and Strategy, Corel Digital Media. "At Corel, our focus is on building engaging and rewarding experiences for our users with solutions that minimize complexity and maximize creativity."

DoStudio is the first graphical tool for the creation of HDi and BD-J, the advanced interactive layers for HD DVD and Blu-ray Disc. DoStudio's interface includes a visual layout editor that allows developers to arrange graphic elements with drag and drop ease, a keyframe animation editor, automatic remote control button assignment, an image list manager and code assist, so developers don't need to memorize an entire API.. This increased efficiency helps to reduce development costs. In addition, DoStudio is built on a proven architecture that prevents memory leaks, unhandled exceptions and other software challenges while maximizing code compatibility across multiple generations of players.

With the integration of Corel's PureHD Authoring Multiplexer, DoStudio will now have the ability to multiplex elementary video and audio streams with HDi code to create a Type 2 HD DVD. Blu-ray multiplexing with BD-J will be available later in 2007.

A public beta of DoStudio MX will be available beginning in July with the final release scheduled for September. DoStudio MX will be available through the DVD One Network Website at http://www.dvd1one.net for a monthly subscription fee of $249 US/month.

About Corel Corporation

Corel is a leading developer of graphics, productivity and digital media software with more than 100 million users worldwide. The company's product portfolio includes some of the world's most popular and widely recognized software brands including CorelDRAW Graphics Suite, Corel Paint Shop Pro, Corel Painter, Corel DESIGNER, Corel WordPerfect Office, WinZip and iGrafx. In 2006, Corel acquired InterVideo, makers of WinDVD, and Ulead, a leading developer of video, imaging and DVD authoring software. Designed to help people become more productive and express their creative potential, Corel's software strives to set a higher standard for value with full- featured products that are easier to learn and use. The industry has responded with hundreds of awards recognizing Corel's leadership in software innovation, design and value.

Corel's products are sold in more than 75 countries through a well-established network of international resellers, retailers, original equipment manufacturers, online providers and Corel's global websites. The company's headquarters are located in Ottawa, Canada with major offices in the United States, United Kingdom, Germany, China, Taiwan and Japan. Corel's stock is traded on the NASDAQ under the symbol CREL and on the TSX under the symbol CRE.

For more information, visit http://www.corel.com or call 408/986-0100.

About NetBlender

NetBlender was founded by a team of veteran producers of interactive media. The company creates platforms for the seamless blending of static and real time content in which each device performs its optimal role, resulting in the most enriching viewer experience. NetBlender strives to provide technical and practical leadership in the emerging new media universe.

For more information, call 703/403-2124 or visit http://www.netblender.com.

The company's core technology, netBlender, provides the seamless "blending" of DVDs and real-time Internet media. netBlender provides studios and distributors with an opportunity to generate multiple revenue streams from DVD products and it provides advertisers with a new avenue into the home and thus a new vehicle for maintaining an ongoing relationship with viewers. No special software installation is required for the home viewer's PC, Media Center or Xbox and, importantly, netBlender can be applied to DVDs that are already in the consumers' libraries; the software does not have to be published on the disc!