Corel and Wacom Sign OEM Bundling Deal: Award-winning products offer users a complete graphics package.

Business Editors

OTTAWA--(BUSINESS WIRE)--July 5, 2000

Corel Corporation (NASDAQ:CORL)(TSE:COR.) today announced it has entered into a worldwide OEM bundling agreement with Wacom, a manufacturer and international distributor of graphics tablets.

Corel(R) Painter(TM) Classic will be bundled with Wacom's Intuos(TM) and Graphire(TM) graphic tablets, creating an exceptional computer system for painting, illustrating and editing images. This is the first OEM agreement Corel has signed involving the recently-acquired MetaCreations family of products.

"Wacom is a leader in the graphics tablet industry and sets the standard for the next generation of graphic tablets," said Jon Riis, director of OEM North American sales at Corel Corporation. "Corel Painter Classic offers intelligent recognition of both a mouse and a tablet, making it the perfect complement to Wacom's award-winning graphic tablets. With this deal, we are demonstrating our commitment to the MetaCreations product line."

Corel Painter Classic provides developing digital artists and novice Web designers with an elegant, quick-to-learn and easy-to-use digital painting technology, whether they're working from existing artwork or painting from scratch. Corel Painter Classic contains a simplified, organized set of Natural-Media(R) tools including paint, chalk, pen and others so that artwork looks hand drawn and organic rather than like computer art.

"We are excited to partner with Corel, a world leader in graphics applications," said Masahiko Yamada, senior director at Wacom Company Limited. "Corel has an amazing line of graphics software. Bundled with Wacom's graphics hardware, users will have a comprehensive graphics system that will take them beyond their imagination."

The Graphire tablet is one of the market's most accurate graphics tablets. Its features include a three-button cordless mouse, designed to always track smoothly and never need cleaning. There is also a pressure sensitive pen with built in eraser, allowing users to draw sketches, add notes to e-mail, or sign their name.

The Intuos tablet is the first professional graphics tablet system in the world. Wacom's ergonomically-designed system of integrated tools are engineered to work together virtually seamlessly. Intuos provides the control, precision and flexibility users need to capture their creativity. This tablet is matched with the accuracy and precision of the pressure-sensitive Intuos Pen, for smooth curves, gradual transitions and precise control. With the Intuos pen users can paint more intuitively, illustrate with more freedom and edit images faster than ever before.

Corel Corporation

Corel Corporation is an internationally recognized developer of award-winning business productivity, graphics and operating system solutions on the Windows(R), Linux(R), UNIX(R), Macintosh(R) and Java(TM) platforms. Corel also develops market-leading, Web-based solutions including applications, contents, e-commerce and online services. For access to these services and more information go to www.corel.com or www.corelcity.com. Corel is headquartered in Ottawa, Canada. Corel's common stock trades on the NASDAQ Stock Market(SM) under the symbol CORL and on the Toronto Stock Exchange under the symbol COR.

Wacom

Wacom is best known for having introduced the world's first cordless, batteryless, pressure-sensitive pen in America in 1989. The company is now the leading manufacturer of computer graphics tablets and electronic pens. More than 1,500,000 professionals worldwide use Wacom graphics tablets and pens. Wacom Technology Corp., a wholly owned subsidiary of Wacom Co., Ltd., in Japan, is headquartered in Vancouver, WA. For more information contact Scott Rawlings, Wacom Technology Corp., 1311 SE Cardinal Court, Vancouver, WA 98683; phone [phone]; website: www.wacom.com.

This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as 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.

Corel, Corel Painter, Natural-Media and the Go further logo are trademarks or registered trademarks of Corel Corporation or Corel Corporation Limited. Wacom, Intuos and Graphire are trademarks of or registered trademarks of Wacom Technology Co. All other products, fonts, company names and logos are trademarks or registered trademarks of their respective owners.