Corel Corporation Reports First Quarter 2008 Financial Results.

-- 2008 first quarter revenue increases 25% over 2007

-- 2008 first quarter GAAP net loss = $30,000 or $(0.00) per share;

-- Non-GAAP adjusted net income = $6.7 million or $0.26 per share

OTTAWA, Canada -- Corel Corporation (NASDAQ:CREL) (TSX:CRE) today reported financial results for its first quarter ended February 29, 2008. Revenues in the first quarter of fiscal 2008 were $65.5 million, an increase of 25 percent over revenues of $52.6 million in the first quarter of fiscal 2007. First quarter 2008 revenue includes organic revenue growth of 3 percent, which excludes revenue from products acquired from InterVideo and Ulead. GAAP net loss in the first quarter of fiscal 2008 was $30,000, or $(0.00) per basic and diluted share, compared to GAAP net loss of $11.9 million, or $(0.48) per basic and diluted share, in the first quarter of fiscal 2007.

Non-GAAP adjusted net income for the first quarter of fiscal 2008 was $6.7 million, or $0.26 per diluted share, compared to non-GAAP adjusted net income for the first quarter of fiscal 2007 of $2.7 million, or $0.11 per diluted share. Non-GAAP adjusted EBITDA in the first quarter of 2008 was $13.3 million, an increase of 52 percent over $8.7 million in the first quarter of 2007.

"Corel had a solid first quarter with strong results across our diverse mix of products, channels and geographies," said David Dobson, Chief Executive Officer, Corel Corporation. "Having successfully completed the integration of InterVideo and Ulead, we are well-positioned to take advantage of the growing market opportunity for our extensive Digital Media portfolio. At the same time, Corel's Graphics and Productivity products enjoyed a strong quarter, highlighted by the first quarter release of CorelDraw Graphics Suite X4 which recorded strong results, particularly in Europe and emerging markets. Additionally, revenue from emerging markets grew more than 40 percent year over year as we continue to expand our presence in these important growing markets through our diverse mix of distribution channels."

Financial Guidance

Second Quarter Fiscal 2008 Guidance

Corel provided guidance for the second quarter ending May 31, 2008. The Company currently expects:

-- Revenue in the range of $66 million to $68 million.

-- GAAP net income in the range of $1.0 million to $2.5 million and non-GAAP adjusted net income in the range of $8.5 million to $10.0 million.

-- GAAP earnings per share in the range of $0.04 to $0.09 and non-GAAP earnings per share in the range of $0.32 to $0.38.

Fiscal 2008 Guidance

Resulting guidance for the year ending November 30, 2008 is as follows:

-- Revenue in the range of $263 million to $275 million.

-- GAAP net income of $9.5 million to $15.0 million and non-GAAP adjusted net income of $40.5 million to $46.0 million.

-- GAAP income per share of $0.34 to $0.55 and non-GAAP earnings per share of $1.50 to $1.70.

Corel will host a conference call to discuss its financial results at 4:30 p.m. Eastern Time today. To access the conference call, please dial [phone] or [phone] approximately 5 minutes prior to the 4:30 p.m. ET start time. A live webcast will also be available through Corel's Investor Relations website at http://investor.corel.com/events.cfm. Following the call, an audio replay will be available between 7:30 p.m. ET April 3, 2008 and 11:59 p.m. ET April 16, 2008 from Corel's Investor Relations website or by calling [phone] or [phone], Passcode: 8743508.

Forward-Looking Statements:

This news release includes forward-looking statements that are based on certain assumptions and reflect our current expectations. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements to differ materially from any future results, performance, or achievements discussed or implied by such forward-looking statements. Such risks include competitive threats from well established software companies that have significantly greater market share and resources than us and from online services companies that are increasingly seeking to provide software products at little or no incremental cost to their customers to expand their Internet presence and build consumer loyalty. We rely on a small number of key strategic relationships for a significant percentage of our revenue and these relationships can be modified or terminated at any time. In addition, our core products have been marketed for many years and the packaged software market in North America and Europe is relatively mature and characterized by modest growth. Accordingly, we must successfully complete acquisitions, penetrate new markets or increase penetration of our installed base to achieve revenue growth. In addition, we face potential claims from third parties who may hold patent and other intellectual property rights which purport to cover various aspects of our products and from certain of our customers who may be entitled to indemnification from us in respect of potential claims they may receive from third parties related to their use or distribution of our products.

These and other risks, uncertainties and other important factors are described in Corel's Annual Report dated February 8, 2008, filed with the Securities and Exchange Commission (SEC) and the Canadian Securities Administrators (CSA) under the caption "Risk Factors" and elsewhere. A copy of the Corel Annual Report and such other filings can be obtained on Corel's website, on the SEC's website at http://www.sec.gov./ or on the CSA's website at http://www.sedar.com. Forward-looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based.

Financial Presentation and Use of Non-GAAP Measures:

Our financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, which differ in certain material respects from Canadian generally accepted accounting principles. In addition, our financial statements and information in this release are presented in U.S. Dollars, unless otherwise indicated. This news release includes certain non-GAAP financial measures, such as adjusted net income and adjusted EBITDA. We use these non-GAAP financial measures to confirm our compliance with covenants contained in our debt facilities, as supplemental indicators of our operating performance and to assist in evaluation of our liquidity. These measures do not have any standardized meanings prescribed by GAAP and therefore are not comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance or changes in cash flows calculated in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the closest GAAP measures are set out in the notes to the financial statements attached to this news release.

About Corel

Corel is a leading developer of graphics, productivity and digital media software with more than 100 million users worldwide. The Company's product portfolio includes some of the world's most popular and widely recognized software brands including CorelDRAW[R] Graphics Suite, Corel[R] Paint Shop Pro[R] Photo, Corel[R] Painter(TM), Corel DESIGNER[R], Corel[R] WordPerfect[R] Office, WinZip[R], WinDVD[R] and iGrafx[R]. Designed to help people become more productive and express their creative potential, Corel's software strives to set a higher standard for value with full-featured products that are easier to learn and use. The industry has responded with hundreds of awards recognizing Corel's leadership in software innovation, design and value.

Corel's products are sold in more than 75 countries through a well-established network of international resellers, retailers, original equipment manufacturers, online providers and Corel's global websites. The Company's headquarters are located in Ottawa, Canada with major offices in the United States, United Kingdom, Germany, China, Taiwan and Japan. Corel's stock is traded on the NASDAQ under the symbol CREL and on the TSX under the symbol CRE. www.corel.com

(c)2008 Corel Corporation. All rights reserved. Corel, Corel DESIGNER, CorelDRAW, Paint Shop Pro, Painter, Photo Express, WinDVD, iGrafx, InterVideo, Ulead, WordPerfect, WinDVD, WinZip and the Corel logo are trademarks or registered trademarks of Corel Corporation and/or its subsidiaries. All other product names and any registered and unregistered trademarks mentioned are used for identification purposes only and remain the exclusive property of their respective owners.

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