Corel Corporation Requests Hearing with NASDAQ Following Listing Notification.

Business Editors/High-Tech Writers

OTTAWA--(BUSINESS WIRE)--May 2, 2003

Corel Corporation (NASDAQ:CORL) (TSX:COR) today announced that it received a NASDAQ Staff Determination on May 1, 2003, indicating that the Company failed to comply with the US $1 minimum bid price requirement for continued listing set forth in Marketplace Rule 4450(a)(5), and that its securities are, therefore, subject to delisting from the NASDAQ National Market. The Company satisfies all other requirements for continued listing on the NASDAQ National Market.

Corel has requested a hearing before the NASDAQ Listing Qualifications Panel to appeal the Staff Determination. The hearing is expected to occur within 45 days of the hearing request filing, and will stay the delisting of Corel's securities pending the Panel's decision, allowing the Company to continue trading on the NASDAQ National Market under the symbol CORL.

"Corel is one of hundreds of companies who have seen their stock value impacted by the protracted weak economic conditions," said Derek Burney, President and CEO of Corel Corporation. "With the minimum bid price issue being the only area in which Corel does not currently satisfy NASDAQ compliance rules, we believe that an appeal is the best course of action for Corel."

Corel's stock continues to trade on the Toronto Stock Exchange (TSX) under the symbol COR.

About Corel Corporation

Founded in 1985, Corel Corporation (www.corel.com) is a leading technology company specializing in content creation tools, business process management and XML-enabled enterprise solutions. The company's goal is to give consumers and enterprise customers the ability to create, exchange and instantly interact with visual content that is always relevant, accurate and available. 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. Specifically, this release contains forward-looking statements regarding the likely benefits from new product introductions and the need by the marketplace for the products under development; the programs being undertaken by the Company and expectations regarding the ability of the Company to increase sales and return to profitability and results in future quarter and for the next fiscal year. The words "plan", "expect", "believe", "intend", "anticipate", "forecast", "target", "estimate" and similar expressions identify forward-looking statements. 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. In particular, there can be no assurance that the Company's cost reductions will be adequate or that the Company will achieve a level of revenue that will allow the Company to return to profitability, that the company will be able to produce and launch new products or that the Company will be able to successfully implement or complete the short-term and long-term programs being undertaken by the Company. Risk factors include shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts, the Company's effectiveness at executing its sales, marketing and development plan, the market acceptance of new products 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) 2003 Corel Corporation. All rights reserved. Corel 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.