Corel and PC Chips to Accelerate Mass Desktop Deployment of Linux: Corel LINUX to be bundled with more than 20 million PC Chips motherboards

Business Wire, Nov 2, 1999

OTTAWA--(BUSINESS WIRE)--Nov. 1, 1999--

COREL(NASDAQ:CORL) (TSE:COR.) Corel Corporation (NASDAQ: CORL, TSE: COR) today announced its first major Linux(r) OEM alliance, which will see its Linux operating system, Corel(r) LINUX(r), bundled with every computer motherboard package shipped worldwide by the PC Chips group of companies.

PC Chips will also ship Corel(r) WordPerfect(r) 8 for Linux and Corel WordPerfect Suite 8 OEM (for Windows(r)) with its motherboards. In addition, the alliance calls for a joint marketing campaign for a relationship on Corel's Web site (www.corel.com) that will bring additional value and services to all users of Corel software and PC Chips computer products.

"Corel's efforts in building an easy-to-use Linux OS and porting its world-class applications over to Linux make it a major player in this new market," said Johnson Yang, chairman of PC Chips. "This alliance gives us the opportunity to provide our customers with a Linux OS that is easy to install and simple for all users to adapt to. We are looking forward to providing our customers with this high quality, valuable alternative."

PC Chips shipped more than 15 million motherboards in 1998 for use in computers of various brand names within its group of companies, or to third party manufacturers. PC Chips also ships millions of CD-ROMs, floppy drives, modems, graphics boards, monitors, cases, power supplies and other peripheral products. PC Chips estimates that it will ship more than 20 million motherboards and white box units in the year 2000.

"PC Chips is one of the world's largest suppliers to the PC desktop market, which makes this bundle a great fit for our Linux initiative," said Dr. Michael Cowpland, president and chief executive officer of Corel Corporation. "Now, users around the world will be able to experience first-hand the super reliability, easy installation and many other benefits of Corel LINUX."

The PC Chips Group of Companies delivers computers in more than 30 countries around the world, with one of the most comprehensive models of vertical integration in the computer industry.

PC Chips will ship Corel LINUX and Corel WordPerfect 8 for Linux on one special jointly-labeled CD and Corel WordPerfect Suite 8 OEM (for Windows) on another jointly-labeled CD with every computer containing a PC Chips motherboard.

"Having the choice to install a Linux workstation onto a computer is a big advantage to computer manufacturers," said Basat Khalifa, marketing director of IPC Direct, Canada's fourth-largest and fastest-growing computer manufacturer. "The Linux OS is a very affordable alternative and one that offers a robust desktop environment with superior functionality. Consumers will save hundreds of dollars on tools and applications with this package because the WordPerfect 8 for Linux software is included. I believe that consumers are looking forward to the affordable alternative that Linux provides."

Corel Corporation

Corel Corporation is an internationally recognized developer of award-winning graphics and business productivity applications. Development of market-leading products such as the CorelDRAW(r) line of graphics applications and the Corel(r) WordPerfect(r) Suite of business tools is continually evolving to meet the demands of the corporate, retail and academic markets. Committed to performance, compatibility, value and open standards, Corel develops products for the Windows(r), Macintosh(r), UNIX(r), Linux(r) and Java(tm) platforms. 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. For more information visit Corel's Web site at www.corel.com.

Corel, WordPerfect, CorelDRAW and the Go Further logo are trademarks or registered trademarks of Corel Corporation or Corel Corporation Limited. Linux is a registered trademark of Linus Torvalds. UNIX is a registered trademark of The Open Group. All other product names are trademarks of their respective companies. All other brands and products referenced herein are the trademarks or registered trademarks of their respective holders.