Corel Corporation Participates With Microsoft at Windows XP Launch in New York.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 24, 2001

Corel President and CEO Derek Burney Joins Bill Gates and

Other Industry Leaders for the Opening of the Nasdaq

Today in New York City, Corel Corporation (Nasdaq:CORL) (TSE:COR.) will join Microsoft Corporation (Nasdaq:MSFT) for the launch of Microsoft Windows XP.

To mark the launch, Corel President and CEO Derek Burney will join Bill Gates, Chairman and Chief Software Architect of Microsoft Corporation, and other technology industry leaders as they open trading for the day on The Nasdaq Stock Market(SM) from the Nasdaq MarketSite in New York's Time Square.

Following the opening of the Nasdaq, Corel will participate in the Windows XP launch event where it will showcase CorelDRAW(R) ESSENTIALS, the first graphics package optimized for this new operating system. Designed to take advantage of the innovative graphics and photo technologies in Windows XP, CorelDRAW ESSENTIALS offers customers new opportunities to enhance their creative experience.

"Windows XP marks the beginning of an exciting new era of Windows-based computing," said Ian LeGrow, Executive Vice-President of Creative Products at Corel. "We are pleased to have the opportunity to participate with Microsoft in the launch of its new operating system. Together, CorelDRAW ESSENTIALS and Windows XP provide end users with a powerful new environment to express their creativity."

Part of Corel's creative collection, CorelDRAW ESSENTIALS combines the powerful functionality of Corel's award-winning graphics and photo-editing applications, CorelDRAW 9(a) and Corel PHOTO-PAINT(R) 9(a), in one easy-to-use, flexible package. Designed for users who have moved beyond entry-level graphics products, this package includes graphics, page layout, photo-editing and painting tools that let users design images and projects from scratch, edit existing photos or graphics and add customizable backgrounds and layouts. Optimized for the Intel(R) Pentium(R) 4 processor and Microsoft Windows XP operating system, this package is a perfect complement to digital cameras.

"Windows XP enables users to fully experience the potential of their PCs - at home and at work," said John Frederiksen, General Manager of Windows Marketing at Microsoft. "By optimizing CorelDRAW ESSENTIALS for Windows XP, Corel is demonstrating its commitment to deliver the best possible solutions to users of Windows XP."

CorelDRAW ESSENTIALS is currently available for the suggested retail price of US$109.

Corel Corporation will be located at Station Number 1 in the Microsoft Experience Pavilion, Marriot Marquis Hotel, 3rd Floor Lobby.

(a) Modified from the full version. Includes select features only.

Corel Corporation

Corel Corporation provides its customers with the creative tools they need to unleash their imaginations. With its heritage of software innovation and a solid franchise of loyal customers worldwide, Corel has earned its reputation as an internationally recognized developer of award-winning graphics and business productivity applications on the Windows, Macintosh(R), Linux(R) and UNIX(R) platforms. In 2001, Corel will continue to expand its support of the Web, delivering the Internet's versatility to customers through exciting Web-based applications, content and services. Corel will also be developing applications for the Microsoft .NET platform as part of its commitment to provide customers with a full range of applications and services over the Internet. With its headquarters in Ottawa, Canada, Corel continues to be one of Silicon Valley North's most exciting and influential software companies. Corel's common stock trades on the NASDAQ Stock Market under the symbol CORL and on the Toronto Stock Exchange under the symbol COR. For more information on Corel Corporation, please visit www.corel.com.

(C) 2001 Corel Corporation. All rights reserved.

Corel, CorelDRAW, Corel PHOTO-PAINT, and the Corel logo are trademarks or registered trademarks of Corel Corporation in Canada, the United States and/or other countries. All other product, font, and company names and logos are trademarks or registered trademarks of their respective companies.