Corel's WordPerfect Office Tools Selected for Entire HP Pavilion Desktop PC Line in North America.

Business Editors & Technology Writers

OTTAWA--(BUSINESS WIRE)--Aug. 26, 2002

RESURGENCE CONTINUES FOR COMPANY'S AWARD-WINNING

PRODUCTIVITY SOFTWARE

Corel Corporation (NASDAQ:CORL)(TSX:COR) today announced that HP has chosen WordPerfect(R) 10 and Quattro Pro(R) 10 as the business productivity software for its entire HP Pavilion desktop computer line in North America. This initiative is the latest in a series of third-party bundling deals involving Corel's WordPerfect Office tools as the applications continue to experience strong growth on the desktop.

"We are very pleased to expand our relationship with HP," said Steve Houck, executive vice-president of strategic relations for Corel Corporation. "It's always great to see a market-leading hardware vendor recognize the benefits of our business productivity software. Vendors are continually looking to increase the value that they can offer to their customers and the strength of the WordPerfect brand offers a very compelling choice."

Starting in September 2002, WordPerfect 10 and Quattro Pro 10, offered together as part of a WordPerfect Productivity Pack, will come pre-loaded on every HP Pavilion sold in North America. Designed for usability and performance, Corel's WordPerfect Office tools feature powerful word-processing and spreadsheet applications, outstanding compatibility, and the latest performance innovations. Plus, a customized integrated Task Manager helps users create a variety of home and office projects quickly and easily.

"We're looking forward to reaching out to more customers who may not have had the chance to use WordPerfect and Quattro Pro before," said Mr. Houck. "It's our belief that once they experience the power, precision, and control of our productivity software, they'll become lifelong Corel customers."

"We selected Corel based on its reputation for developing quality software that's powerful, reliable, and easy to use," said Tom Anderson, worldwide marketing manager, HP home products division. "With the WordPerfect Office tools installed on HP Pavilion home PCs, customers can look forward to using remarkable products that meet all aspects of their individual computing needs."

The WordPerfect Productivity Pack consists of the following applications:

WordPerfect 10, the latest version of Corel Corporation's award-winning word-processing package, offers customers unprecedented precision and control over their document creation. Complete with popular features such as Reveal Codes, Publish to PDF, support for Windows(R) XP and Microsoft(R) Word documents, including Microsoft Word 2002 (Microsoft Office XP), WordPerfect 10 provides a number of powerful features to improve user productivity.

Quattro Pro 10 is a flexible spreadsheet application that lets users manage, analyze, report, share data and organize information. It helps users make informed business decisions by providing the tools they need to produce tables, financial forms, lists, databases and professional-level charts and reports with tremendous ease.

Task Manager, which has been tailored to meet HP's specific requirements, can be considered the headquarters of the WordPerfect Productivity Pack. It serves as a launching pad to introduce users to the applications included in the pack, to guide users through the creation of various projects, and to organize the pack's vast collection of ready-to-use templates.

For more information about WordPerfect or Quattro Pro, please visit www.wordperfect.com.

About Corel Corporation

Founded in 1985, Corel Corporation (www.corel.com) is a leading technology company that offers software for home and small business users, creative professionals and enterprise customers. With its headquarters in Ottawa, Canada, Corel's common stock trades on the Nasdaq Stock Market under the symbol CORL and on the Toronto Stock Exchange under the symbol COR.

This press release contains forward-looking statements as defined by the United States Private Securities Litigation Reform Act of 1995, involving the company's expectations about future financial results and other matters. These statements reflect management's current forecast of certain aspects of the company's future business. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results of operations to differ materially from historical results or current expectations. The words "plan", "expect", "believe", "intend", "anticipate", "forecast", "target", "estimate" and similar expressions identify forward-looking statements. Risk factors include shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to Corel's most recent reports filed with the Securities and Exchange Commission for a more complete discussion of the other risks and uncertainties. The factors underlying forecasts are dynamic and subject to change. As a result, forecasts speak only as of the date they are given and do not necessarily reflect the company's outlook at any other point in time. The company does not undertake to update or review these forward-looking statements.

(C)2002 Corel Corporation. All rights reserved. Corel, WordPerfect, Quattro Pro and the Corel logo are trademarks or registered trademarks of Corel Corporation and/or its subsidiaries in Canada, the U.S. and/or other countries. All other product, font and company names and logos are trademarks or registered trademarks of their respective companies.