Corel Receives Proposal from Majority Shareholder

    OTTAWA, March 28 /CNW/ - Corel Corporation (NASDAQ:  CREL; TSX:CRE), a
leading developer of graphics productivity and digital media software,
announced today it has received an unsolicited proposal from Corel Holdings,
L.P. (which is controlled by an affiliate of Vector Capital Corporation)
("CHLP"), the holder of 69% of Corel's outstanding common shares. CHLP is
proposing to make an offer to acquire all of Corel's outstanding common shares
not currently held by CHLP at a price of US$11.00 cash per share. CHLP has
indicated that any such offer would be conditional upon, among other things,
satisfactory confirmatory due diligence and Corel's existing credit facility
remaining in place following the consummation of any transaction.
    The Board of Directors of Corel has formed a Special Committee of
independent members of the Board consisting of Ian Giffen, Steven Cohen and
Daniel Ciporin to assist it in evaluating and responding to the CHLP proposal
and other related strategic considerations. Corel will not be providing
further comment at this time but will provide updates as further information
becomes available. There can be no assurance that any transaction will be
completed or, if completed, of its terms, price or timing.

    About Corel Corporation

    Corel is a leading developer of graphics, productivity and digital media
software with more than 100 million users worldwide. The Company's product
portfolio includes some of the world's most popular and widely recognized
software brands including CorelDRAW(R) Graphics Suite, Corel(R) Paint Shop
Pro(R) Photo, Corel(R) Painter(TM), Corel DESIGNER(R), Corel(R) WordPerfect(R)
Office, WinZip(R), WinDVD(R) and iGrafx(R). Designed to help people become
more productive and express their creative potential, Corel's software strives
to set a higher standard for value with full-featured products that are easier
to learn and use. The industry has responded with hundreds of awards
recognizing Corel's leadership in software innovation, design and value.
    Corel's products are sold in more than 75 countries through a
well-established network of international resellers, retailers, original
equipment manufacturers, online providers and Corel's global websites. The
Company's headquarters are located in Ottawa, Canada with major offices in the
United States, United Kingdom, Germany, China, Taiwan, and Japan. Corel's
stock is traded on the NASDAQ under the symbol CREL and on the TSX under the
symbol CRE.

    (C) 2008 Corel Corporation. All rights reserved. Corel, CorelDRAW, Paint
Shop Pro, Snapfire, Painter, Corel DESIGNER, WordPerfect, WinZip, iGrafx, the
Corel logo, InterVideo, Ulead, WinDVD and WinDVD Creator are trademarks or
registered trademarks of Corel Corporation and/or its subsidiaries. All other
trademarks are the property of their respective holders.

For further information:

For further information: CRELF: Press Contact: Corel Corporation,
Catherine Hughes, (613) 728-0826 x1659,; Investor
Relations Contact: The Blueshirt Group, (415) 217-7722,; Stacie Bosinoff,

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