Corel Corporation Files for U.S. and Canadian IPO.

OTTAWA -- Corel Corporation today announced that it has filed a Registration Statement on Form F-1 with the U.S. Securities and Exchange Commission and a preliminary prospectus with securities regulators in all of the provinces of Canada in preparation for an initial public offering of its common shares. Shares to be sold in the offering are being sold by the company and by selling shareholders.

Morgan Stanley & Co. Incorporated will act as lead bookrunning manager for the offering. JPMorgan, Deutsche Bank, Piper Jaffray, CIBC World Markets and Canaccord Adams will be co-managers.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. A preliminary prospectus has also been filed with securities commissions or similar authorities in the provinces of Canada but has not yet become final for the purposes of a distribution to the public in Canada. These securities may not be sold in the United States nor may offers to buy be accepted from U.S. persons prior to the time the registration statement becomes effective. In addition, these securities may not be sold in any province of Canada, nor may offers to buy be accepted from a person resident in any province of Canada prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such province.

This release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities or any acceptance of an offer to buy these securities in any State, province or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to their registration or qualification under the securities laws of any such State, province or jurisdiction.

When available, a copy of the preliminary prospectus may be obtained from Morgan Stanley & Co. Incorporated, 180 Varick Street, New York, NY 10014 or by emailing [e-mail].

The preliminary prospectus may also be accessed through Corel's website at www.corel.com or directly from the U.S. Securities and Exchange Commission at www.sec.gov.

About Corel Corporation

Corel is a leading global packaged software company with an estimated installed base of over 20 million users. The Company provides high quality, affordable and easy-to-use productivity, graphics and digital imaging software and enjoys a favorable market position among value-conscious consumers and small businesses. Its products are sold in over 75 countries through a scalable distribution platform comprised of original equipment manufacturers (OEMs), Corel's domestic and international websites, and a global network of resellers and retailers. The Company's product portfolio features well-established, globally recognized brands including CorelDRAW(R) Graphics Suite, Corel WordPerfect(R) Office, Corel Paint Shop(TM) Pro, and Corel(R) Painter(TM).

(C) 2006 Corel Corporation. All rights reserved. Corel, CorelDRAW, WordPerfect, Paint Shop, Painter, 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.