Corel Corporation Responds to Shareholder Suit.

Business Editors/High-Tech Writers

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

Corel Corporation (NASDAQ: CORL, TSX: COR) today announced that it has been served with a class action complaint brought by a purported Corel shareholder. The suit arises from the non-disclosure and standstill agreement entered into by Corel and Vector Capital and claims unspecified compensatory damages and injunctive relief. The complaint also names Corel's directors and Vector Capital and alleges that the defendants breached their duties to take steps to ensure that the shareholders receive maximum value for their shares in a change of control transaction. Corel and its directors believe the case is without merit and will defend their position vigorously. The suit was filed with the Supreme Court of the State of New York, County of Nassau.

As announced on March 24, 2003, Vector Capital and Corel Corporation have entered into a non-disclosure and standstill agreement whereby Vector was given 30 days to conduct a due diligence review of Corel's business operations. This period was subsequently extended to May 5, 2003, at Vector's request. As part of this process, Corel's Board of Directors has engaged CIBC World Markets to identify and assess other strategic alternatives in order to maximize value for Corel's shareholders.

"The Board of Directors and management of Corel are committed to ensuring the best possible return on investment for Corel's shareholders," said James Baillie, Chairman of Corel's Board of Directors. "With the assistance of CIBC World Markets, we are conducting a thorough analysis to ensure that any recommendations advanced by the Board are appropriate and consistent with current market conditions and the Board's fiduciary responsibilities."

Added Mr. Baillie: "We have the mechanisms in place to ensure a fair and equitable process, including the identification of a minimum bid price and the exploration of all available strategic alternatives. In addition, any potential bid will be subject to a fairness opinion and the approval of Corel shareholders. We believe in Corel's potential and the strength of its strategy and, as stated previously, we will continue with that strategy whether or not a sufficiently attractive offer emerges from this process."

For further information about the terms of the non-disclosure and standstill agreement, please refer to documents filed with the Canadian Securities Regulators by Corel as an exhibit to Corel's Material Change Report at www.sedar.com.

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. 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) 2003 Corel Corporation. All rights reserved. Corel 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.