Corel and Rebel.com to Deliver Linux to the Enterprise Marketplace: Strategic Partnerships Allow Corel to Extend Its Linux Offering to SME Customers - Company Business and Marketing

Edge: Work-Group Computing Report, June 5, 2000

In a key strategic move, Corel Corporation (Nasdaq:CORL)(TSE:COR.) Tuesday announced its intention to enter into a partnership with Rebel.com to deliver an enterprise edition of Corel LINUX OS using Rebel.com's OfficeServer software.

This new product will provide front and back-end support for Linux as well as a migration path enabling computer users to move freely between multiple platforms. Building on its success in the small to medium-sized enterprise market (SME), Corel will leverage its acknowledged expertise on the desktop and offer enterprise clients an affordable and comprehensive Linux server and Web-based OS solution.

Since its launch last November, the Corel LINUX OS desktop edition has gained widespread recognition in the industry. Recent figures released by PC Data, a market research firm, show Corel is now ranked second only to Red Hat when tracking the share of revenues from sales of the Linux operating system in the U.S. retail market (PC Data Retail Software Report -- April 2000). Most recently, Corel LINUX OS Deluxe Edition won the Best New Product Award in the End-User Software Category by Government Computer News at FOSE 2000, the largest information technology exposition serving the government marketplace.

With an eye to the future, Corel is strategically moving towards the solutions consumers are demanding. According to International Data Corporation, Linux Server Operating Environments have seen a 93.2 per cent growth from 1998 to 1999.

"Corel has established itself as an innovative force in the Linux market with our desktop version of Corel LINUX OS. Now we are taking the next logical step in our long-term strategy by delivering that same strength and ease of use to an enterprise solution," said Dr. Michael Cowpland, president and chief executive officer at Corel Corporation. "By combining Rebel.com's award-winning server software technology with our front-end Linux expertise, we will offer users greater choice and flexibility to ensure we provide an end-to-end solution that meets their computing needs."

Corel and Rebel.com have signed a Letter of Intent wherein Rebel.com agrees to license its Linux-based OfficeServer software, currently part of Rebel.com's Internet server appliance product -- NetWinder OfficeServer, to Corel. In recent benchmark tests conducted by ZD Labs, Rebel.com's NetWinder OfficeServer with DMA enabled came a clear first in Web Server testing, with performance up to 20% better than the Whistle Interjet, and 100% better than the Cobalt Qube 2. refer to www.zdnet.com/zdlabs/stories/main/0,8829,2417272,00.html for a full text version of the ZD Labs report.

"There is a definite need for a simple, one-stop shop in the Linux market," said Michael Mansfield, president of Rebel.com. "The combination of Corel LINUX OS and Rebel.com's OfficeServer software will supply the SME market with a solution that provides a comprehensive range of benefits and ease of use."

The OfficeServer software efficiently meets the needs of today's business by providing full Internet and local area network support. It includes a broad range of network services such as firewall/VPN, Web site hosting, Web access, file and printer sharing and E-mail.

In addition, a standing agreement between Corel and GraphON enables Corel to provide a migration path, allowing computer users to move freely between multiple platforms. Together, Corel LINUX OS and GraphOn Bridges and GO-Between give IT managers the ability to deploy Linux, Windows and UNIX-based applications to every desktop in their organization with ease. This partnership offers both simplicity, flexibility and a lower total cost of ownership for customers.

Through these partnerships, Corel will offer enterprise clients an affordable and comprehensive server and Web-based OS solution. Each component of the enterprise edition will be available individually, including the server edition which will ship in the fourth quarter of 2000. The enterprise edition will be available in the first quarter of 2001. It will be localized in several languages. Technical and professional services to support the enterprise and server editions of Corel LINUX OS will also be available through Corel's Linux partners, including LinuxForce and 8D. Further details including pricing and availability will be announced shortly.

Corel Corporation is an internationally recognized developer of award-winning business productivity, graphics and operating system solutions on the Windows, Linux, UNIX, Macintosh and Java platforms. Corel also develops market-leading, Web-based solutions including applications, contents, e-commerce and online services. For access to these services and more information go to www.corel.com or www.corelcity.com. Corel is headquartered in Ottawa, Canada. Corel's common stock trades on the NASDAQ Stock Market under the symbol CORL and on the Toronto Stock Exchange under the symbol COR.

Based in Ottawa, Canada, Rebel.com is a manufacturer and supplier of Linux-based NetWinder Internet server appliances and was named one of Canada's fastest growing companies by Profit magazine. Available in either compact desktop or industrial-strength rackmount formats, the NetWinder product line includes the NetWinder Developer and the NetWinder OfficeServer. Providing outstanding power, speed and flexibility, the NetWinder efficiently meets the development or Web serving needs of today's organizations. FMI: www.rebel.com.