Corel Puts New Face On Enterprise Communications.

OTTAWA--(BUSINESS WIRE)--June 25, 1997--Corel Corporation (TSE:COS.)(NASDAQ: COSFF.) today announced the launch of its spin-off company, Corel Computer Corp. The new company will be comprised of Corel's Video and Network Computing divisions and will focus on offering a complete hardware and software solution to the corporate environment. The company, which today opened the doors of its new corporate offices, will initially be a wholly owned subsidiary of Corel Corporation.

"This is an exciting new development for Corel," says Dr. Michael Cowpland, president and chief executive officer of Corel Corporation. "This new company will assemble a unique combination of knowledge expertise and experience. The focus will be on providing a complete computing and communications solution to clients. New enterprises will now be able to use one company to install an entire corporate computing and communications infrastructure."

The new company will offer corporate video conferencing as well as other communications and network computing solutions. Corel Computer Corp.'s product offering will initially be built around CorelVIDEO and the forthcoming Corel Video Network Computer and the CorelVIDEO Compression CAM. CorelVIDEO delivers the convenience of videoconferencing to the desktop, with tools such as video on demand, corporate broadcasts, and business television that make it great for education and information distribution as well. The Corel Video Network Computer will leverage Corel's wealth of Java experience and is a cornerstone in Corel Computer Corp.'s strategy to marry communications and computing on the corporate desktop. The CorelVIDEO Compression CAM offers users an entry into video communications either over the LAN or Plain Old Telephone System (POTS).

"This move has been made possible by new technological developments such as the rapidly increasing bandwidth of LANs, network dependability and the new popularity of open-standards compliant software and hardware," says Eid Eid, president of Corel Computer Corp. "Corel Computer Corp. is poised to capture a large segment of the market tired of rising computing and communications costs."

Corel Corporation will have a majority stake in the new company and has no plans of abandoning any of its new technology. Although at this point the new subsidiary will be wholly owned by Corel, it is expected that within 12 months or less the company will gain enough revenue from video product and development work in the Java arena to stand on its own. Services such as human resources, marketing and design services will be contracted to the new company through Corel's existing resources. The relationship between Corel Computer Corp. and Corel will be a close one as they will both share Dr. Michael Cowpland as their chairman. The line of business at Corel Computer Corp. may require more regional offices and more of a focus on direct sales. It will also have a different distribution model to fit its unique product line.

However, it will operate under the same open-door philosophy as Corel with a horizontal management structure - advanced products, sales and engineering concentration.

Corel Corporation will have a majority stake in the new company and has no plans of abandoning any of its new technology. Although at this point the new subsidiary will be wholly owned by Corel, it is expected that within 12 months or less the company will gain enough revenue from video product and development work in the JAVA arena to stand on its own. Services such as human resources, marketing and design services will be contracted to the new company through Corel's existing resources. The relationship between and Corel will be a close one as they will share the same chairman. The line of business at may require more regional offices and more of a focus on direct sales. It will also have a different distribution model to fit the product line. It will operate under the same open-door philosophy as Corel with a horizontal management structure - advanced products, sales and engineering concentration.

Approximately 80 Corel employees will move to the new company, which will be located in Ottawa but outside of Corel's headquarters. Some members of Corel's current management team will be moving to Corel Computer Corp., including Eid Eid, Corel's VP of Technology, who will head the new company as president. Roger Bryanton, Corel's Director of Video Technology, will direct the engineering team. Corel's chief engineer and developer of CorelVIDEO, Pat Beirne, will also participate in the new venture. Mike Cowpland will take on an active role as chairman of the board, however his focus will remain on Corel Corp's business.

Corel Corporation

Incorporated in 1985, Corel Corporation is recognized internationally as an award-winning developer and marketer of productivity applications, graphics and multimedia software. Corel's product line includes CorelDRAW , Corel WordPerfect Suite, Corel Office Professional, CorelCAD and over 30 multimedia software titles. Corel's products run on most operating systems, including: Windows, Macintosh, UNIX, MS-DOS, OpenVMS and OS/2 and are consistently rated among the strongest in the industry. The company ships its products in over 17 languages through a network of more than 160 distributors in 70 countries world-wide. Corel is traded on the Toronto Stock Exchange (symbol-COS) and on NASDAQ National Market System (symbol:COSFF). For more information visit Corel's home page on the Internet at http://www.corel.com.

Note to Editors: Corel, WordPerfect, CorelDRAW and CorelCAD are registered trademarks or trademarks of Corel Corporation or Corel Corporation Limited. CorelVIDEO and Corel Video Network Computer are a registered trademarks or trademarks of Corel Computer Corp. Java is a trademark or registered trademark of Sun Microsystems, Inc. All other product and company names mentioned are trademarks or registered trademarks of their respective companies.

CONTACT: Corel Corporation

Oliver Bendzsa, 613/728-0826 ext. 1398

[e-mail]