Corel(R) Highlights InterVideo(R) and Ulead(R) High-Definition BD Entertainment Solutions at CES.

New Products Enhance and Enrich Consumer Enjoyment of Blu-ray[R] Format

LAS VEGAS -- Corel Corporation (NASDAQ:CREL) (TSX:CRE), a leading provider of digital media software, announced today that for the first time, the complete family of InterVideo[R] and Ulead[R] Blu-ray[R] (BD editing, authoring, navigation and playback) software will be featured at Corel's CES Booth, South Hall - 4/35377 and at the Blu-ray Disc Association booth, Central Hall 3/11606. Corel[R] completed its acquisition of InterVideo, Inc. and its subsidiary, Ulead Systems, last month. Highlighted will be the InterVideo playback solutions that are being shown by leading manufacturers at CES this week and are available immediately at retail stores nationwide.

Because of the rapid success of high-definition video entertainment, consumers want to raise the quality of their own personal and family video content. According to iSuppli[R], more than 85 million digital displays will be purchased this year worldwide and JEITA indicates more than 50 million consumers will buy new high-definition camcorders.

With the growing availability of Hollywood movies on BD, consumers also want to take full advantage of all of the extra interactive features available in the professional videos they buy. To meet these consumer demands, Corel has unleashed the full potential of the BD format with an integrated family of high-performance, high-quality home entertainment products.

Based on the successful launch of BD burners and media last quarter, nearly five million blue laser burners will be sold in the Americas this year according to IDC Research[R]. At CES this week, Corel will demonstrate the new family of retail products for personal and professional BD digital content development and enjoyment. The products will be available through industry partners as well as Corel's worldwide resellers. Also highlighted will be digital photo and video solutions that are being implemented into leading PC and CE products.

BD Enjoyment

With the widespread acceptance of the BD format by the entertainment industry, Corel will show the new WinDVD[R] 8 BD software that provides fast, uncomplicated navigation of BD movies: as well as, the highest quality playback of the high-definition content. WinDVD is widely recognized as the world's leading DVD playback software, the new enhancements fully support advanced interactive features of BD movies; as well as, the new BD-J specification. The specification lets movie enthusiasts take advantage of all of the BD disc interactive playback features production studios are offering consumers including subtitle additions, multiple viewing angles, varying play modes and direct Internet connectivity for content updates.

With the availability of affordable higher resolution digital cameras and HD camcorders, Corel is also introducing a number of enhanced, easier-to-use, multi-purpose high-definition imaging and video software products.

High-Definition Video

With Ulead VideoStudio[R] and Ulead DVD MovieFactory[R] personal and professional high-definition video production software, consumers can take full advantage of their new high-def digital camcorders and share/enjoy their theater-quality videos on high-resolution HDTV sets.

The new DVD MovieFactory 5 suite simplifies the video postproduction process so people can quickly create standard or HD video and photos that can be saved to a DVD or BD disc for sharing or enjoying on their HDTV. The new software includes easy disc editing, authoring and creative tools that simplify the task of producing discs. For BD production, the suite offers direct recording of HD content to BD discs with AACS encryption for premium content.

Surprisingly easy to use, even by inexperienced users, the software incorporates advanced features like a multi-trim editor, motion filters and the ability to rotate, resize and reposition text and objects for maximum viewing enjoyment. For people who want to capture, edit and save their favorite TV show, the software also includes Ad-Zapper which scans video content and automatically detects commercials so they can be removed for uninterrupted viewing.

For consumers who want to focus on capturing, sharing and enjoying their family moments and memories in DVD or high-definition quality, rather than editing and authoring, Corel is demonstrating VideoStudio 10. The software's DV-to-DVD Wizard cuts the task of transferring content from DV camcorder to DVD to one click with its direct-to-disc capability. A new set of anti-shake, enhanced lighting and correction filters helps users rescue precious video and turn it into breath-taking high-def content. In addition to incorporating the company's unique Ad-Zapper function, VideoStudio 10 also includes a comprehensive library of titling, special effects and transitions to help turn ordinary video into theater quality entertainment.

Photo Production

Whether it is a first-time digital camera user or professional videographer using advanced, high-resolution equipment, the new Ulead PhotoImpact[R] 12 provides a range of simplified yet advanced features and capabilities. Novice digital photographers are welcomed with a new user interface that takes the mystery and complexity out of enhancing and improving their personal and family moments and memories. At the same time, experienced and advanced photographers have a powerful set of next-generation creative tools and true 16-bit editing/RAW support. Keeping pace with today's camera technology advances, the software provides an extensive list of automatic and manual processing tools including the ability to enhance photo-tone, move and remove elements for perfect photo composition, adjust color and correct images in high-quality 48-bit color depth and store the photos/slide presentations to high-definition discs or any leading mobile entertainment device.

About Corel Corporation

Corel is a leading global packaged software company with over 40 million users. The Company provides full-featured, easy-to-use productivity, graphics and digital imaging software and enjoys a favorable market position among consumers and small businesses. The Company's award-winning product portfolio features popular, globally recognized brands, including CorelDRAW[R] Graphics Suite, Corel[R] Paint Shop Pro[R], Corel[R] Snapfire[TM], Corel[R] Painter[TM], Corel DESIGNER[R], Corel[R] WordPerfect[R] Office, WinZip[R], and iGrafx[R]. With hundreds of industry awards for leadership in software innovation, design and value, Corel's products have built a loyal following of customers and partners around the globe. Corel's products are sold in over 75 countries through an international network of resellers and retailers, original equipment manufacturers (OEMs), and Corel's global websites.

Corel Corporation announced the completion of its acquisition of InterVideo, Inc., a leading provider of digital media authoring and playback software with a focus on high-definition video and DVD technologies, on December 12, 2006. In 2006, InterVideo acquired Ulead, a leading developer of video imaging and DVD authoring software for desktop, server, mobile and Internet platforms.

[c] 2007 Corel Corporation. All rights reserved. Corel, CorelDRAW, Paint Shop Pro, Snapfire, Painter, Corel DESIGNER, WordPerfect, WinZip, iGrafx, InterVideo, WinDVD, Ulead, Ulead PhotoImpact, Ulead VideoStudio, Ulead DVD MovieFactory and the Corel logo are trademarks or registered trademarks of Corel Corporation and/or its subsidiaries. All other product, font and company names and logos are trademarks or registered trademarks of their respective companies.