Corel Corporation Introduces New Licensing Program - Company Offers Microsoft Enterprise Agreement Accounts Special Promotion for WordPerfect.

Business Editors

OTTAWA--(BUSINESS WIRE)--July 31, 2002

Corel Corporation (NASDAQ:CORL) (TSX:COR) today announces the introduction of a new licensing program, designed to simplify the purchasing decisions for customers and provide greater flexibility in addressing their needs.

"Consistent with our ongoing commitment to be customer-focused, this new licensing program is founded on direct customer feedback and will cover all the products in the Corel portfolio," said Gary Klembara, executive vice-president of sales at Corel Corporation. "We have made significant enhancements to our program - changes we believe will benefit our customers greatly. By providing maximum flexibility and reducing our customers' administrative costs, we can help our customers take full advantage of Corel's software and services on their own terms."

In addition, to coincide with the launch of this new program, Corel is offering a special incentive to customers who currently own Microsoft Enterprise Agreements. For a limited time period(a), these customers can take advantage of a risk-free promotion and deploy Corel's award-winning word-processing application - WordPerfect(R) 10 - across their organizations. Customers who are interested in this promotion should contact 1-877-OK-COREL and reference the "EA Promotion".

Added Mr. Klembara: "The purpose of this promotion is to reach out to Microsoft customers who are dissatisfied with Microsoft's Enterprise Agreement and offer them an alternative with terms we are confident they will appreciate. Every day, millions of customers rely on the power and precision that WordPerfect provides - it's the premiere choice of customers in the legal and government sectors and the ultimate word processor. With the rollout of our new licensing program, we believe this is a perfect opportunity to invite Microsoft's large-volume enterprise clients to experience the power, stability and exceptional compatibility Corel's flagship word processor has to offer."

The company's new licensing program, launching August 1, 2002, enables customers to choose from two easy-to-understand options when considering purchasing solutions and services from Corel.

The Corel Transactional License (CTL) option entitles customers to purchase a broad range of products and services from Corel through individual transactions without a volume commitment. The Corel Contractual License (CCL) option is reserved for customers who require a tailor-made volume license solution in combination with support and service offerings. These programs are designed for any size organization in the corporate, government and academic segments.

Customers who procure products or services from Corel under either option are also eligible to purchase a term of 'maintenance' when they make their license purchase, giving them access to product upgrades, Premium Services and entitlements such as multilingual support during the maintenance term.

Under this new program, the company will also provide specialized licensing options for academic institutions, specifically tailored to fully service the needs of this key customer group.

"I'm extremely impressed with the changes that Corel has made to its licensing program. With simplified terms and a flexible structure, the program reflects Corel's commitment to developing programs that put customer priorities first," said Randy Donnell, licensing specialist at The Douglas Stewart Company, the largest education specific distributor in the United States. "Corel has done an excellent job creating continuity across all of its licensing products, applying standard media and documentation policies as well as introducing a tiered structure that makes sense. I'm confident that our customers will be pleased with what Corel's new licensing program has to offer."

The new licensing terms will apply to all of the company's software products and services, including those recently acquired from Micrografx, Inc. and SoftQuad Software Ltd., in all markets served by Corel around the globe. These products include CorelDRAW(R), WordPerfect, Corel Ventura(R), XMetaL(R), Corel(R) DESIGNER(TM), as well as Corel's XML, process management and Six Sigma solutions.

For more information on Corel's new licensing program, please contact your Corel authorized reseller or Corel Corporation at 877-652-6735 in North America or [phone] in international markets.

(a)Special promotion offered from August 1, 2002, to October 31, 2002 only.

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, CorelDRAW, Corel Ventura, Corel DESIGNER, XMetaL 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.