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Corel begins Beta-testing of Corel LINUX

Johannesburg, 29 Sept 1999

Corel Corporation is pleased to announce that it has entered the beta-testing phase for its desktop version of the Linux operating system, Corel LINUX.

For the beta-testing phase, Corel has recruited a sampling of the intended audience who will test Corel LINUX and provide feedback regarding their experience. This feedback may result in modifications to the product prior to the first public distribution, planned for the end of the year. Corel LINUX is based on the Debian/GNU distribution of the Linux OS and includes the K Desktop Environment (KDE). In its distribution, Corel has enhanced the graphical user interface (GUI) and created a new installation program that is much simpler than existing desktop PC operating systems.

"It gives us great pleasure to announce that we`ve reached this important milestone in the development of Corel LINUX," said Dr. Michael Cowpland, president and chief executive officer of Corel Corporation. "We`re proud to again demonstrate our commitment to the Linux community by meeting the second of our targeted deadlines. After previewing Corel LINUX in August as planned, the beta-testing phase of Corel LINUX means that Linux is closer to the mainstream community than it`s ever been before."

To build on the strength of Corel LINUX, Corel is developing several new research and development partnerships that should result in significant added value and end-user functionality to Corel LINUX. These organizations include:

.         Philips Speech Processing (NYSE: PHG);

.         Loki Entertainment Software;

.         Webb Interactive (NASDAQ: WEBB);

.         eFax.com (NASDAQ: EFAX); and;

.         GraphOn (NASDAQ: GOJO).

Each of these companies is excited to be working with Corel on Corel LINUX. Philips Speech Processing, for example, will work closely with Corel to speech-enable its upcoming Linux products. Currently, Philips Speech Processing partners with Corel to bundle its FreeSpeech technology in many international versions of WordPerfect Office 2000.

"It is a logical fit for Philips Speech Processing and Corel to work in tandem producing powerful productivity tools for Linux users," said Ron van den Bos, president and chief executive officer of Philips Speech Processing. "No matter what direction the industry takes, we are committed to providing speech technology that will enhance all aspects of the end-user experience."

As the leading Linux games vendor, Loki Entertainment Software works with leading game publishers to port its best-selling PC and Macintosh titles to the Linux platform. Loki is working with Corel to bring these popular and easy-to-use games to Corel LINUX.

"Corel is a leader in bringing Linux to the consumer desktop; we`re pleased to be working with them to bring market-leading Linux games to the Corel LINUX distribution," said Scott Draeker, president of Loki Entertainment Software. "Corel`s strength in the sales channels offers a great opportunity for large-scale distribution of our Linux games via the Web, OEM and retail sales channels, when bundled with the Corel LINUX distribution."

Two other companies, Webb Interactive and eFax.com, are working with Corel to maximize ease of use and functionality of Corel LINUX by adding Internet-based instant messaging and fax capabilities. Webb Interactive is working with Corel to integrate the Jabber open source instant messenger (www.jabber.org

into Corel LINUX. Jabber supports the IETF`s open model of integration with AOL, ICQ, Microsoft and other instant messaging clients. Webb is also working closely with Corel to create compelling value-added Web sites, commerce and promotion services to its Linux customers.

"WEBB Interactive is excited to be working with Corel Corporation on these very strategic fronts," said Perry Evans, president of Webb. "Our industry-leading XML-based solutions will be designed to integrate seamlessly with the Corel LINUX operating system."

eFax offers free phone numbers that allow members to receive faxes via e-mail, and charges subscription fees for more advanced services. The company is working with Corel to bring its eFax service to Corel LINUX.

"Realizing the great momentum of Linux and Corel`s central position in this movement, eFax is excited to work with Corel to optimize our eFax Microviewer and service offerings to support Corel LINUX users," said Rudy Prince, chief executive officer of eFax.com.

GraphOn, is extending its thin server-based technology for 32-bit Windows applications (code-named "jBridge") to include the Linux desktop. This development will allow Linux desktop computers to display Windows applications accessed over the Internet or other network connections, as if they were running on their local desktop. Together with GraphOn`s GO-Global and GO-Joe already licensed by Corel, support for Windows applications will allow Corel LINUX desktop users the flexibility to run their existing Windows, UNIX or Linux applications residing on remote servers without rewrites.

"GraphOn is excited to be working with Corel in the rapidly-growing Linux marketplace," said GraphOn president and chief executive officer, Walt Keller. "The combination of Corel LINUX, the soon-to-be-released Corel office suite for Linux and GraphOn server-based solutions offers a viable new choice for the desktop with potential for a much lower cost of ownership. With the ability to access Windows from Linux and Linux from Windows, businesses now have far more flexibility and alternatives."

To ensure that Corel LINUX will offer strong connectivity to the Internet, Corel is currently negotiating with several North American ISP providers. Netscape Navigator and Adobe Acrobat Reader and many other key applications will also be included in Corel LINUX to ensure a full-featured, plug-and-play environment.

Corel expects to make further announcements regarding these potential partnerships and others in the near future.

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For more information visit Corel`s Web site at www.corel.com.