Corel Provides Update on Discussions with Vector Capital.

Business Editors/High-Tech Writers

OTTAWA, Ontario--(BUSINESS WIRE)--June 5, 2003

Corel Corporation (NASDAQ: CORL, TSX: COR) today announced that, as previously reported on May 6, 2003, the Company continues to be in discussions with Vector Capital Corporation with respect to a potential transaction for the acquisition of Corel. As previously announced, Vector Capital has the contractual right to make an offer to Corel's shareholders to purchase all common shares at a price of US $1.10 and the Board of Directors of Corel agreed to recommend such an offer provided that it receives a fairness opinion.

In light of recent trading activity in Corel's common shares, Corel has announced that there is a high likelihood that it will shortly enter into a definitive agreement with Vector Capital for a transaction at a price per common share which will be below US $1.10 per share and which the Board of Directors will recommend that shareholders approve.

Corel will make a further announcement upon entering into any definitive agreement with Vector Capital or terminating discussions, whichever occurs.

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.