http://biz.yahoo.com/rf/991101/jj.html

Monday November 1, 9:04 am Eastern Time

Corel in PC Chips Linux deal

(Full text of press release from Canadian Corporate News)

NOVEMBER 1, 1999

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

OTTAWA, ONTARIO--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.''

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