Corel WordPerfect Office to Support Open Document Format and Microsoft Office Open XML

OTTAWA--(BUSINESS WIRE)--Corel Corporation (NASDAQ:CREL; TSX:CRE) today announced that Corel® WordPerfect® Office will be updated to support new XML-based file formats, the OASIS Open Document Format (ODF) and Microsoft® Office Open XML (OOXML).

“Today it is far from clear which of these formats will be adopted by productivity customers, or indeed if we’ll simply need to continue working with multiple file formats”

Beginning in mid 2007, Corel will provide open, view and edit support for OOXML and ODF as a first step towards a comprehensive set of functionality for both formats.

Supporting both ODF and OOXML places Corel in a unique format-neutral position, independent of Microsoft, Adobe and other vendors’ efforts to propagate their respective standards. This format-neutral approach allows Corel to focus directly on addressing the needs of customers, whose adoption choices will determine which formats will become most relevant. Corel is the only vendor to take such an approach.

“Corel is and will continue to be a strong supporter of open standards. The XML format roadmap for Corel WordPerfect Office reflects our clear focus on responding to the needs of our customers, especially those in government who are making significant efforts to adopt open standards,” said Richard Carriere, General Manager of Office Productivity at Corel. “Because it is free, truly open and certified as an ISO standard, many customers see ODF as the most promising format for the future of office productivity. Yet upon the debut of Microsoft Office 2007, Microsoft OOXML will immediately experience broad dissemination. Corel’s unique format-neutral approach ideally positions WordPerfect Office to address demand for both formats, giving us the ability to serve customers in a way other vendors can’t.”

Corel’s pragmatic approach to emergent XML file formats provides customers with maximum flexibility, lowers costs and reduces risk by insulating customers against committing to a standard that may not become adopted.

“Today it is far from clear which of these formats will be adopted by productivity customers, or indeed if we’ll simply need to continue working with multiple file formats,” said Carriere. “Corel WordPerfect Office already supports widely adopted standards such as PDF, plus many proprietary formats including Microsoft Office’s binary formats. Adding OOXML and ODF support means Corel can flexibly address customers’ needs, regardless of the formats they choose going forward.”

As part of its ongoing commitment to standards, Corel will continue to engage with the ODF community and to encourage the adoption of open standards. Corel is a member of OASIS and the ODF Alliance and one of its developers was among the original authors of the OASIS Open Document Format specification.

Corel WordPerfect Office X3 is the world’s leading alternative to Microsoft Office, and the world’s only office suite to import, edit and export PDF word processing documents. Corel WordPerfect Office also offers powerful and scalable XML capabilities and XML publishing has formed an integral component of the suite since 1999.

For more information on Corel WordPerfect Office X3 or other Corel products, please visit www.corel.com.

About Corel Corporation

Corel is a leading global packaged software company with over 40 million users. The Company provides full-featured, easy-to-use productivity, graphics and digital imaging software and enjoys a favorable market position among consumers and small businesses. The Company's award-winning product portfolio features popular, globally recognized brands, including CorelDRAW® Graphics Suite, Corel® Paint Shop Pro®, Corel® Snapfire™, Corel® Painter™, Corel DESIGNER®, Corel® WordPerfect® Office, WinZip®, and iGrafx®. With hundreds of industry awards for leadership in software innovation, design and value, Corel's products have built a loyal following of customers and partners around the globe. Corel's products are sold in over 75 countries through an international network of resellers and retailers, original equipment manufacturers (OEMs), and Corel's global websites.

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Forward-Looking Statements:

This news release includes forward-looking statements that are based on certain assumptions and reflect our current expectations. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements to differ materially from any future results, performance, or achievements discussed or implied by such forward-looking statements. Such risks include competitive threats from well-established software companies that have significantly greater market share and resources than us, new entrants that benefit from industry trends, such as the increasing importance of Internet distribution and open source software, and from online services companies that are increasingly seeking to provide software products at little or no incremental cost to their customers to expand their Internet presence and build consumer loyalty. We rely on a small number of key strategic relationships for a significant percentage of our revenue and these relationships can be modified or terminated at any time. In addition, our core products have been marketed for many years and the packaged software market in North America and Europe is relatively mature and characterized by modest growth. Accordingly, we must successfully complete acquisitions, penetrate new markets or increase penetration of our installed base to achieve revenue growth. In addition, we face risks related to our proposed acquisition of InterVideo, Inc., including the risk that the proposed acquisition may not be completed in a timely manner, if at all, and disruption from the transaction making it more difficult to maintain relationships with customers, employees, or suppliers. These and other risks, uncertainties and other important factors are described in our Prospectus dated April 25, 2006, filed with the Securities and Exchange Commission (The SEC) pursuant to Rule 462(b) of the rules and regulations under the Securities Act of 1933 and our other filings with the SEC under the caption "Risk Factors" and elsewhere. A copy of the Prospectus and such other filings can be obtained on our website or on the SEC’s website at http://www.sec.gov. Certain of such risks are also included in our Canadian supplemented PREP prospectus dated April 25, 2006 available at http://www.sedar.com or in the company's most recent 10-Q available on out website or the SEC website at http://www.sec.gov. Risks related to InterVideo’s business can be found in InterVideo’s reports filed with the SEC under the caption "Risk Factors" and elsewhere, including InterVideo’s 10-Q for the quarter ended September 30, 2006, which can be found on InterVideo’s website or on the SEC’s website at http://www.sec.gov. Forward-looking statements speak only as of the date of the document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based.

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