New SoftQuad XMetaL 3 Selected as a Seybold Seminars' Hot Pick; Latest Version of SoftQuad's Award-Winning XML Content Creation Solution Now Shipping.

Business/High-Tech Editors

Seybold Seminars New York 2002

TORONTO, Ontario--(BUSINESS WIRE)--Feb. 13, 2002

SoftQuad Software, Ltd. (OTCBB:SXML), an internationally recognized developer of XML-enabling technologies and solutions for e-business, today announced that Seybold Publications' editors have selected its XMetaL 3 content creation solution as a Hot Pick at the Seybold Seminars New York 2002 conference.

XMetaL 3, a major upgrade to SoftQuad's award-winning XML content creation software, breaks new ground as the first XML editor with a rich development environment that supports the W3C (Worldwide Web Consortium) XML Schema, and adds important new development and collaboration features. XMetaL 3 is now available directly from SoftQuad, and through authorized resellers.

"SoftQuad has a reputation for being an early adopter of standards in its editing products," said Mark Walter, a senior analyst for The Seybold Report. "With XMetaL 3's support for XML Schema, once again the company is out in front of the market and in a good position to capitalize on an emerging opportunity."

SoftQuad will participate in Seybold Seminars New York 2002, to be held from February 19 to 22, at Corel Corporation's booth #423.

XMetaL 3 is a validating XML editor within an open and scriptable development environment. It allows developers to use common Web development and programming skills to create visual editing interfaces that hide the complexity of XML from users. Over 2,000 companies, including Microsoft, Cisco, USAToday.com, KBC Bank, Honeywell, Continental Airlines, Ford Europe, GE Medical Systems, Amazon.com and National Semiconductor have chosen XMetaL for XML content creation.

"XMetaL 3 enables enterprises to take advantage of the power of XML to quickly and cost-effectively deliver information to Web, print and other channels," said Roberto Drassinower, SoftQuad's CEO. "XMetaL 3 incorporates important new technologies and capabilities that our customers require to build the type of integrated solutions that will drive their businesses forward."

"XMetaL 3 addresses the single most difficult issue for first-time XML adopters -- how to publish in a widely-usable format," said Tony Stevens, Turn-Key Systems, a software company specializing in the development and integration of paper and electronic publishing systems. "Version 3 enhances the extensive standards support from previous versions to allow the creation of HTML and PDF at virtually zero cost."

About XMetaL 3: Support for Industry Standard XML Schema

XMetaL 3 is the only customizable XML editor with a rich development environment to support XML Schema, an essential standard developed by the W3C to define common languages for business applications. XMetaL provides XML editing validated for both document structure and datatyping. Customers can migrate smoothly from XML DTDs to XML Schema as they begin to take advantage of standardized datatyping for any document model.

Powerful New Development Features

XMetaL 3 gives developers the power to control exactly how XML documents are displayed and edited by end users. It has an extensive COM and JAVA API comprising more than 300 interfaces, as well as support for DOM, CSS, XSL and standard scripting languages.

XMetaL 3's new developer features include:

-- Support for both W3C Schema and DTDs

-- XMetaL Forms Toolkit, an integrated drag-and-drop development environment
for creating inline forms and dialog boxes

-- Java API

-- More than 100 new API methods, events and properties

Simplified Content Creation and Collaboration for End Users

XMetaL 3 also includes new features and capabilities that make it easier for customers to deploy solutions that hide the complexity of XML from users during the content creation process. New features include:

-- Revision marking

-- Preview in HTML and PDF

-- Enhanced integration with Microsoft Office

-- WebDAV support

Availability

XMetaL 3 is available now. Until March 15, new users can purchase XMetaL 3 for $395 (U.S.) per single user license. After that date, the price for XMetaL is $495 (U.S.) per single user license. Upgrades from previous versions of XMetaL are $195 (U.S.). XMetaL is sold directly via www.softquad.com and through authorized resellers. Volume discounts, site licenses, partner programs and on-site training are available.

About SoftQuad Software, Ltd.

SoftQuad Software, Ltd. (OTCBB:SXML) is an internationally recognized developer of XML-enabling technologies and commerce solutions for e-business. A founding member of the World Wide Web Consortium (W3C), the Organization for the Advancement of Structured Information Standards (OASIS) and XML.org, SoftQuad has been instrumental in shaping and developing both the standards and technologies that are changing the way companies exchange information and do business over the Web.

Headquartered in Toronto, Canada, with U.S. offices in Seattle and San Francisco, and European operations based in London, England, SoftQuad was first to market with an advanced, yet easy-to-use XML content creation solution, XMetaL. It has become the premier enabling technology for XML-based content applications in electronic publishing, e-commerce and knowledge management. For more information, please visit SoftQuad's Web site at http://www.softquad.com.

SoftQuad and XMetaL are registered trademarks of SoftQuad Software, Ltd. All other products or company names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

Caution Concerning Forward-Looking Statements

Forward-looking statements in this news release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are management's present expectation of future events. 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 "anticipates", "estimates", "expects", "will", "should", "projects", "intends", "plans", "believes" and words of similar substance identify forward-looking statements. Risk factors for SoftQuad Software, Ltd. include, but are not limited to: shifts in demand for its products and services, lengthened sales and implementation cycles, competitive conditions, its ability to meet future capital requirements, protection of its intellectual property rights, the resolution of issues concerning commercial activities via the internet, reliance on strategic partners, risks related to international sales and potential foreign currency exchange fluctuations, its ability to attract and retain key personnel, and the successful completion of SoftQuad's proposed merger with Corel Corporation. For a more complete discussion of risks and uncertainties, refer to SoftQuad's most recent reports filed with the U.S. Securities and Exchange Commission and other regulatory authorities. The factors underlying projections or forecasts are susceptible to uncertainty and subject to change. Therefore, projections and forecasts are valid as of the date they are made and do not necessarily reflect SoftQuad's outlook at any other point in time. SoftQuad does not undertake to update or review forward-looking statements.

NOTE TO EDITORS:

XMetaL 3 evaluation kits are now available. All requests from product reviewers should be directed to Muriel Guilbert at [e-mail].