Corel Computer Corp. Reveals The Corel Video Network Computer.

OTTAWA--(BUSINESS WIRE)--Oct. 27, 1997--Corel Computer Corp. (TSE:COS., NASDAQ:COSFF.) today previewed its newest network computer technology: the Corel Video Network Computer(TM). With its Linux-based operating system and its Java(TM)-based multimedia communications suite, the product forms a premiere combination of integrated software and hardware for thin-client computing and video communications.

"Corel Computer has set a new standard for thin-client computing," said Dr. Michael Cowpland, chairman of Corel Computer Corp., president and chief executive officer of Corel Corporation. "We have combined our leadership in Java technology with our expertise in communications and computing hardware to produce an ultra-fast, network-centric computing solution."

The Corel Video Network Computer counters the reputation of network computers as inherently slow devices by delivering high speed performance. Delivering the power to execute Java and legacy applications, the network computer is also ideal as a terminal replacement. Powered by Digital Equipment Corporation's RISC-based StrongARM microprocessor, the Corel Computer machines have been clocked at more than 250 million instructions per second.

"There is nothing thin about the performance of this network computer," said Mr. Eid Eid, president of Corel Computer Corp. "With its built-in multimedia, voice and video communications it's as powerful as any high-end multimedia PC. However, it offers all the advantages of thin-client computing in terms of client administration, software distribution, training, and cost of ownership."

Key benefits include: -0-

-- Reduced Software Distribution Costs: The Corel Video Network Computer leverages the network computing model by storing software, user documents and user profiles on a central server. Files and application components are downloaded as users need them, ensuring that all users are executing the same software version all the time. The Corel Video Network Computer eliminates incompatibility issues and the need for costly manual upgrades.

-- Persistent Caching and Synchronization: The Corel Video Network Computer improves on the thin client model by providing productivity and functionality even when detached from the central server. Because user applications, files and profiles are mirrored on the Corel Video Network Computer, users can continue to work even when disconnected from the server. When the client is reconnected to the server, files are synchronized with the information on the server.

-- Minimal Network Traffic: The Corel Video Network Computer has been built to minimize network traffic. As applications are downloaded from the server they are persistently cached on a local hard drive and run from the client, minimizing network traffic.

-- Energy Efficiency: During daily operation the Corel Video Network Computer consumes about the same amount of power as a 7 watt night light. When not in use, the Corel Video Network Computer can be placed in a "sleep mode" that uses considerably less power. All data and applications are temporarily saved until the machine is powered-up with a simple push of a button.

-- Ergonomic Design: Roughly the size of a hardcover book (approximately 9 1/2" x 6 3/8" x 2") the sleek and whisper-quiet Corel Video Network Computer is an unobtrusive desktop client.

In addition to the flexibility of network computing, the Corel Video Network Computer includes built-in multimedia and videoconferencing capabilities. The Corel Video Network Computer can be used for video distribution, or with the addition of a CorelCAM(TM), or any video camera, for live two-way conversation.

Other key features of the Corel Video Network Computer include: -0-

-- A Digital StrongARM SA-110 microprocessor

-- 32 MB of memory (expandable to 64 MB) and more than 500 MB persistent memory cache

-- Two Ethernet ports: 10Base-T and 10/100Base-T

-- Additional connectivity through a V.34/V.80 software modem, IrDA transceiver, parallel and serial ports

-- A composite high resolution XVGA and NTSC/PAL video output with 4 MB RAM

-- Onboard communications include 4 MB video conferencing RAM, video capture and compression/decompression for voice and videoconferencing

-- Full stereo in/out, microphone and speaker, jack for analog phone, IP phone and videoconferencing

-- Keyboard and mouse

Corel Computer's commitment to provide a complete network computer and communications solution is further solidified by the announcement of new software products. The Corel Video Network Computer will showcase a Linux-based operating system as well as a Java-based communications suite.

Corel Video Network Computer Operating System

The underpinnings of the network computer are based on Linux, a publically available operating system developed by Linus Torvalds in 1991. Based on the same code as the UNIX operating system, Linux is continually being improved by developers, administrators and users around the world. A Java Virtual Machine (JVM) from JavaSoft Corporation will work in conjunction with the operating system. Java byte code is interpreted and translated into native Linux instructions via the JVM.

The Linux-based operating system in Corel Computer Corp's Video Network Computer offers the following benefits: -0-

-- Highly stable - ideal for enterprise computing

-- Powerful and robust

-- Multitasking and multithreading capabilities

-- Real-time services

-- Widely supported: more than 100,000 developers worldwide sharing code and advancements

Multimedia Communications Suite

Task-oriented and Java-based, Corel Computer has designed a customizable user interface, including multimedia communications capabilities, that is downloaded from the central server to the desktop client. Designed for simplicity, the user interface acts as a container for the tasks and applications from Corel Computer and other software vendors. The user interface is designed to leverage the open, vendor-independent nature of Java and will allow any third-party software to be integrated into the Corel Video Network Computer.

The Java-based multimedia communications tools include: -0-

-- Java-based browser

-- Personal information tools: address book, schedule, calendar,

to do list, calculator

-- CorelVIDEO(TM) Intranetwork(TM): LAN-based video and audio

communications

-- HTML editor

-- File browser

-- Personal desktop preference controls

-- E-mail client

-- Access to legacy and Windows(R) 32-bit applications such as

Corel(R) WordPerfect(R) Suite 8 via a built-in client

Availability and Pricing

The Corel Video Network Computer is a key part of Corel Computer Corp's strategy to provide the premiere combination of communications and computing for the corporate desktop. Initially available in North America, Corel Computer will sell turnkey network computing solutions that include network computers, third party middle ware such as e-mail and directory services and third party enterprise services including management software, file servers and file storage.

Scheduled for commercial availability by early 1998, Corel Computer Corp will be rolling out prototypes of the network computer to strategic corporate and institutional accounts over the coming weeks. Pricing for corporate solutions is available upon request.

Corel Computer Corp.

The Corel Video Network Computer(TM) and CorelVIDEO(TM) are the cornerstones of Corel Computer Corp.'s strategy to merge communications and computing on the corporate desktop. Corel Computer offers industry-leading video communications tools that are reliable, scalable and deliver the power and productivity of face-to-face communications whether users are across the hall or around the world. Corporate customers seeking turnkey solutions can turn to Corel Computer for custom integration and deployment of low-cost network computing clusters and videoconferencing. Corel Computer Corp. is a wholly-owned subsidiary of Corel Corporation, an award-winning developer of graphics software and productivity applications. -0-

Note to Editors: Corel is a registered trademark of Corel Corporation. CorelVIDEO, CorelCAM and Corel Video Network Computer are trademarks of Corel Computer Corp. Java is a trademark of Sun Microsystems, Inc. Windows is a registered trademark of Microsoft Corporation. All product and company names are trademarks or registered trademarks of their respective companies.

Photo available on CP Digital Photo Network.

CONTACT: Corel Computer Press Contact

Oliver Bendzsa, 613/788-6000 Ext. 6167

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