Corel Corporation Streamlines Operations; Company Reduces Workforce to Advance Goal of Profitability.

Business Editors & High-Tech Writers

OTTAWA--(BUSINESS WIRE)--Nov. 6, 2002

Corel Corporation (NASDAQ:CORL)(TSX:COR) today announced that it has reduced its workforce as part of the company's plan to streamline operations and increase efficiencies. This action represents a significant step forward in the company's goal to return to profitability and generate positive cash flow despite the persistently soft economy and weak spending in the IT sector.

Corel has reduced its global workforce by 220 employees or approximately 22 per cent. These changes affect all departments within the organization and will result in a payroll cost reduction of approximately US $12 million per year on an ongoing basis. To implement these workforce changes, the company will incur a one-time restructuring charge of between US$5.8 and US$6.3 million. These expenses will be incurred during the current quarter, enabling the company to realize the cost savings beginning in the first quarter of fiscal 2003.

"Corel has made a commitment to run the business profitably regardless of the prevailing economic conditions and the measures we have implemented today position us to achieve that goal," said Derek Burney, president and CEO of Corel Corporation. "Today's actions are necessary for us to realize the company's ongoing strategy to build long-term value for our shareholders and continually improve the experiences of our customers.

"While we anticipate revenue growth for fiscal 2003, we are adopting a conservative approach in aligning our cost structure to reflect the company's current revenue patterns," added Mr. Burney. "A decision of this kind is never easy. We value all of our employees and their contributions to Corel's success."

"Over the past two years, Corel has shown tremendous progress in its commitment to financial discipline by building a strong balance sheet, substantial cash reserves and eliminating all of its long-term debt," said Randy Eisenbach, chief operating officer at Corel Corporation. "Today's adjustments align Corel's resources more closely with industry best practices and better position the company to introduce new solutions with increased speed and efficiency. By doing this, we can deliver greater value to our customers, partners and shareholders."

The company's global workforce now stands at 769 employees worldwide.

About Corel Corporation

Founded in 1985, Corel Corporation (www.corel.com) is a leading technology company specializing in content development (both text and graphics), 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 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 the company's ability to execute its plan, its ability to return to profitability and generate positive cash flows, 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 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.