Exhibit 99.1

For Immediate Release

Corel Corporation Reports Second Quarter 2008 Financial Results

OTTAWA, July 3, 2008 — Corel Corporation (NASDAQ:CREL) (TSX:CRE) today reported financial results for its second quarter ended May 31, 2008. Revenues in the second quarter of fiscal 2008 were $67.0 million, compared to $65.0 million in the second quarter fiscal 2007. GAAP net income in the second quarter of fiscal 2008 was $930,000, or $0.04 per basic and diluted share, compared to GAAP net income of $2.3 million, or $0.09 per basic and diluted share, in the second quarter of fiscal 2007.

Non-GAAP adjusted net income for the second quarter fiscal 2008 was $9.5 million, or $0.36 per diluted share, compared to non-GAAP adjusted net income for the second quarter of fiscal 2007 of $9.8 million, or $0.39 per diluted share. Non-GAAP adjusted EBITDA in the second quarter of 2008 was $14.9 million, compared to $15.2 million in the second quarter of 2007.

“Corel performed well in the second quarter, reflecting the diversity of the Company’s products and distribution channels and the strength of its brand in key geographies,” said Kris Hagerman, Interim Chief Executive Officer, Corel Corporation. “We continue to successfully execute our core strategy which is to drive profitable growth by pursuing opportunities in faster growing markets, while delivering consistent growth and profits from our more established product lines and channels. As Corel’s results for the second quarter illustrate, we continue to benefit from our highly diversified business model.”

Financial Guidance

Third Quarter Fiscal 2008 Guidance

Corel provided guidance for the third quarter ending August 30, 2008. The Company currently expects:

— Revenue in the range of $63 million to $65 million.

— GAAP net income in the range of break even to $1.6 million and non-GAAP adjusted net income in the range of $8.0 million to $9.5 million.

— GAAP earnings per share in the range of $0.00 to $0.06 and non-GAAP earnings per share in the range of $0.30 to $0.36.

Fiscal 2008 Guidance

Resulting guidance for the year ending November 30, 2008 is as follows:

— Revenue in the range of $263 million to $275 million.

— GAAP net income of $8.5 million to $13.5 million and non-GAAP adjusted net income of $40.5 million to $46.0 million.

— GAAP income per share of $0.30 to $0.50 and non-GAAP earnings per share of $1.50 to $1.70.

Corel will host a conference call to discuss its financial results at 8:00 a.m. Eastern Time today. To access the conference call, please dial (877) 419-6600 or (719) 325-4860 approximately 5 minutes prior to the 8:00 a.m. ET start time. A live webcast will also be available through Corel’s Investor Relations website at http://investor.corel.com/events.cfm. Following the call, an audioreplay will be available between 11:00 a.m. ET July 3, 2008 and midnight ET July 16, 2008 from Corel’s Investor Relations website or by calling (888) 203-1112 or (719) 457-0820, Passcode: 8074180.

Forward-Looking Statements:

This news release includes forward-looking statements that are based on certain assumptions and reflect our current expectations. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements to differ materially from any future results, performance, or achievements discussed or implied by such forward-looking statements. Such risks include the pending proposed offer from our majority shareholder Corel Holdings, L.P. (which is controlled by an affiliate of Vector Capital Corporation) (“CHLP”) and the ongoing evaluation of the strategic alternatives by the Special Committee, which create additional expense for the Company and cause uncertainty which could affect our ability to retain customers and employees. There can be no assurance that any transaction with CHLP or any other party will be consummated. Such risks also include competitive threats from well established software companies that have significantly greater market share and resources than us and from online services companies that are increasingly seeking to provide software products at little or no incremental cost to their customers to expand their Internet presence and build consumer loyalty. We rely on a small number of key strategic relationships for a significant percentage of our revenue and these relationships can be modified or terminated at any time. In addition, our core products have been marketed for many years and the packaged software market in North America and Europe is relatively mature and characterized by modest growth. Accordingly, we must successfully complete acquisitions, penetrate new markets or increase penetration of our installed base to achieve revenue growth. In addition, we face potential claims from third parties who may hold patent and other intellectual property rights which purport to cover various aspects of our products and from certain of our customers who may be entitled to indemnification from us in respect of potential claims they may receive from third parties related to their use or distribution of our products.

These and other risks, uncertainties and other important factors are described in Corel’s Annual Report dated February 8, 2008, and in Corel’s 10-Q dated April 7, 2008 filed with the Securities and Exchange Commission (SEC) and the Canadian Securities Administrators (CSA) under the caption “Risk Factors” and elsewhere. A copy of the Corel Annual Report and 10-Q can be obtained on Corel’s website, on the SEC’s website at http://www.sec.gov./ or on the CSA’s website at http://www.sedar.com.. Forward-looking statements speak only as of the date of the

document in which they are made. We disclaim any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in our expectations or any change in events, conditions or circumstances on which the forward-looking statement is based.

Financial Presentation and Use of Non-GAAP Measures:

Our financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, which differ in certain material respects from Canadian generally accepted accounting principles. In addition, our financial statements and information in this release are presented in U.S. Dollars, unless otherwise indicated. This news release includes certain non-GAAP financial measures, such as adjusted net income and adjusted EBITDA. We use these non-GAAP financial measures to confirm our compliance with covenants contained in our debt facilities, as supplemental indicators of our operating performance and to assist in evaluation of our liquidity. These measures do not have any standardized meanings prescribed by GAAP and therefore are not comparable to the calculation of similar measures used by other companies, and should not be viewed as alternatives to measures of financial performance or changes in cash flows calculated in accordance with GAAP. Reconciliations of these non-GAAP financial measures to the closest GAAP measures are set out in the notes to the financial statements attached to this news release.

About Corel

Corel is one of the world’s top software companies with more than 100 million active users in over 75 countries. We develop software that helps people express their ideas and share their stories in more exciting, creative and persuasive ways. Through the years we’ve built a reputation for delivering innovative, trusted products that are easy to learn and use, helping people achieve new levels of productivity. The industry has responded with hundreds of awards for software innovation, design and value.

Our award-winning product portfolio includes some of the world’s most widely recognized and popular software brands, including CorelDRAW^® Graphics Suite, Corel^® Paint Shop Pro^® Photo, Corel^® Painter™, VideoStudio^®, WinDVD^®, Corel^® WordPerfect^® Office and WinZip^®. Our global headquarters are in Ottawa, Canada, with major offices in the United States, United Kingdom, Germany, China, Taiwan and Japan.

^© 2008 Corel Corporation. All rights reserved. Corel, CorelDRAW, Paint Shop Pro, Painter, Corel DESIGNER, VideoStudio, WordPerfect, WinDVD, WinZip, iGrafx, and the Corel logo are trademarks or registered trademarks of Corel Corporation and/or its subsidiaries. All other product, font and company names and logos are trademarks or registered trademarks of their respective companies.
CRELF

Corel Corporation
Catherine Hughes, 613-728-0826 x1659 (Press)
catherine.hughes@corel.com
or
The Blueshirt Group
Todd Friedman, 415-217-7722 (Investor Relations)
todd@blueshirtgroup.com
Stacie Bosinoff, 415-217-7722 (Investor Relations)
stacie@blueshirtgroup.com

Corel Corporation
Quarterly Financial results
For the quarter ended May 31, 2008
(in thousands, except per share data; unaudited)

	Three Months ended						Six Months ended
	May 31,			May 31,			May 31,			May 31,
Consolidated Condensed Statement of Operations	2008			2007			2008			2007
Revenues — Product	$	60,249		$	59,553		$	119,611		$	106,857
Revenues — Maintenance and services		6,795			5,479			12,977			10,809
Total revenues		67,044			65,032			132,588			117,666
Cost of revenues — Product		14,008			14,026			29,235			22,523
Cost of revenues — Maintenance and services		132			221			299			419
Amortization of intangible assets		6,418			6,373			12,832			12,130
Total cost of revenues		20,558			20,620			42,366			35,072
Gross margin		46,486			44,412			90,222			82,594
Operating expenses
Sales and marketing		20,748			17,715			40,432			34,990
Research and development		11,716			11,070			23,807			22,666
General and administration		8,640			8,575			17,451			17,237
Acquired in-process research and development		—			—			—			7,831
InterVideo integration expense		—			860			—			1,645
Restructuring		447			—			625			—
Total operating expenses		41,551			38,220			82,315			84,369
Income (loss) from operations		4,935			6,192			7,907			(1,775	)
Other expenses (income)
Interest Income		(99	)		(518	)		(219	)		(882	)
Interest expense		3,032			4,236			7,440			8,521
Amortization of deferred financing fees		270			269			540			534
Expenses associated with Special Committee review		705			—			705			—
Other non-operating expense (income)		102			479			(1,362	)		(153	)
Income (loss) before income taxes		925			1,726			803			(9,795	)
Income tax (recovery)		(5	)		(587	)		(97	)		(232	)
Net income (loss)	$	930		$	2,313		$	900		$	(9,563	)
Net loss per share:
Basic	$	0.04		$	0.09		$	0.04		$	(0.39	)
Fully diluted	$	0.04		$	0.09		$	0.03		$	(0.39	)
Weighted average number of shares:
Basic		25,543			24,817			25,503			24,722
Fully diluted		26,238			25,284			26,165			24,722

Consolidated Condensed Balance Sheet

	May 31,			November 30,
	2008			2007
Assets
Current assets:
Cash and cash equivalents	$	33,415		$	24,615
Restricted cash		161			217
Accounts receivable
Trade, net		28,775			41,092
Other		2,958			118
Inventory		932			729
Income taxes recoverable		1,649			1,470
Prepaids and other current assets		3,930			3,276
Total current assets		71,820			71,517
Capital assets		9,176			8,971
Intangible assets		79,471			92,010
Goodwill		88,643			88,643
Deferred financing and other long-term assets		5,641			5,696
Total assets	$	254,751		$	266,837
Liabilities and shareholders’ deficit
Current liabilities:
Accounts payable and accrued liabilities	$	58,089		$	67,290
Income taxes payable		944			723
Deferred revenue		12,816			15,707
Current portion of long-term debt		18,952			2,249
Current portion of obligations under capital leases		728			767
Total current liabilities		91,529			86,736
Deferred revenue		2,179			2,365
Deferred income tax liability		18,287			20,754
Obligations under capital leases		1,600			2,114
Income taxes payable		13,201			11,693
Accrued pension benefit obligation		1,083			1,116
Long-term debt		138,561			156,359
Total liabilities		266,440			281,137
Shareholders’ deficit
Share capital		42,182			40,652
Additional paid-in capital		7,763			5,926
Accumulated other comprehensive loss		(1,425	)		(721	)
Deficit		(60,209	)		(60,157	)
Total shareholders’ deficit		(11,689	)		(14,300	)
Total liabilities and shareholders’ deficit	$	254,751		$	266,837

Consolidated Condensed Statement of Cash Flows

	Three Months ended						Six Months ended
	May 31,			May 31,			May 31,			May 31,
	2008			2007			2008			2007
Cash flows from operating activities
Net income (loss)	$	930		$	2,313		$	900		$	(9,563	)
Depreciation and amortization		1,233			969			2,395			1,671
Amortization of deferred financing fees		270			269			540			534
Amortization of intangible assets		6,418			6,373			12,832			12,130
Stock-based compensation		1,977			1,290			3,115			2,298
Provision for bad debts		129			49			233			65
Deferred income taxes		(1,233	)		(1,280	)		(2,467	)		(2,315	)
Acquired in-process research and development		—			—			—			7,831
Unrealized loss on forward exchange contracts		—			—			—			35
Loss on disposal of fixed assets		6			54			48			54
Loss (gain) on interest rate swap recorded at fair value		(512	)		(391	)		243			(582	)
Gain on sale of investment		—			—			(822	)		—
Change in operating assets and liabilities		(2,308	)		(12,862	)		(3,700	)		3,066
Cash flows provided by (used in) operating activities		6,910			(3,216	)		13,317			15,224
Cash flows from financing activities
Restricted cash		—			—			56			—
Proceeds from operating line of credit		—			5,000			—			48,000
Repayments on operating line of credit		—			(15,000	)		—			(35,000	)
Proceeds from long-term debt		—			—			—			70,000
Repayments of long-term debt		(404	)		(399	)		(1,095	)		(1,080	)
Repayments of capital lease obligations		(205	)		—			(339	)		—
Financing fees incurred		—			(5	)		—			(1,677	)
Proceeds from exercise of stock options		203			1,387			254			2,689
Other financing activities		—			51			—			51
Cash flows provided by (used in) financing activities		(406	)		(8,966	)		(1,124	)		82,983
Cash flows from investing activities
Purchase of InterVideo Inc, net of cash acquired		—			(786	)		—			(121,154	)
Purchase of long lived assets		(1,865	)		(608	)		(3,299	)		(718	)
Cash flows used in investing activities		(1,865	)		(1,394	)		(3,299	)		(121,872	)
Effect of exchange rate changes on cash and cash equivalents		(59	)		80			(94	)		45
Increase (decrease) in cash and cash equivalents		4,580			(13,496	)		8,800			(23,620	)
Cash and cash equivalents, beginning of period		28,835			40,906			24,615			51,030
Cash and cash equivalents, end of period	$	33,415		$	27,410		$	33,415		$	27,410

Non-GAAP Results
(In thousands, except per share data)

	Three Months ended						Six Months ended
	May 31,			May 31,			May 31,			May 31,
	2008			2007			2008			2007
Non-GAAP Adjusted Net Income Calculation:
Net income (loss)	$	930		$	2,313		$	900		$	(9,563	)
Amortization of intangible assets		6,418			6,373			12,832			12,130
Deferred income taxes		(1,233	)		(1,280	)		(2,467	)		(2,315	)
Stock-based compensation		1,977			1,290			3,115			2,298
Restructuring		447			—			625			—
InterVideo integration expense		—			860			—			1,645
Expenses associated with Special Committee review		705			—			705			—
Acquired in-process research and development		—			—			—			7,831
Amortization of deferred financing fees		270			269			540			534
Non-GAAP Adjusted Net Income	$	9,514		$	9,825		$	16,250		$	12,560
Percentage of revenue		14.2	%		15.1	%		12.3	%		10.7	%
Pro-forma diluted non-GAAP adjusted net income per share	$	0.36		$	0.39		$	0.62		$	0.50
Shares used in computing proforma diluted non-GAAP adjusted net income per share		26,238			25,284			26,165			25,307
Non-GAAP Adjusted EBITDA Calculation:
Cash flows provided by operating activities	$	6,910		$	(3,216	)	$	13,317		$	15,224
Change in operating assets and liabilities		2,308			12,862			3,700			(3,066	)
Interest expense, net		2,933			3,718			7,221			7,639
Income tax (recovery)		(5	)		(587	)		(97	)		(232	)
Deferred income taxes		1,233			1,280			2,467			2,315
Provision for bad debts		(129	)		(49	)		(233	)		(65	)
Unrealized loss on forward exchange contracts		—			—			—			(35	)
Gain (loss) on interest rate swap		512			391			(243	)		582
Loss on disposal of fixed assets		(6	)		(54	)		(48	)		(54	)
Gain on sale of investment		—			—			822			—
Expenses associated with Special Committee review		705			—			705			—
InterVideo integration expense		—			860			—			1,645
Restructuring		447			—			625			—
Non-GAAP Adjusted EBITDA	$	14,908		$	15,205		$	28,236		$	23,953
Percentage of revenue		22.2	%		23.4	%		21.3	%		20.4	%

Other Supplemental Information
(In thousands)

	Three Months ended						Six Months ended
	May 31,			May 31,			May 31,			May 31,
	2008			2007			2008			2007
Revenue by Product Segment
Graphics and Productivity	$	38,497		$	34,517		$	75,444		$	68,582
Digital Media		28,547			30,515			57,144			49,084
Total	$	67,044		$	65,032		$	132,588		$	117,666
As percentage of revenues
Graphics and Productivity		57.4	%		53.1	%		56.9	%		58.3	%
Digital Media		42.6	%		46.9	%		43.1	%		41.7	%
Total		100.0	%		100.0	%		100.0	%		100.0	%
Revenue by Geography
Americas	$	32,793		$	33,015		$	63,690		$	60,208
EMEA		19,564			17,108			40,577			34,766
APAC		14,687			14,909			28,321			22,692
Total	$	67,044		$	65,032		$	132,588		$	117,666
As percentage of revenues
Americas		48.9	%		50.8	%		48.0	%		51.2	%
EMEA		29.2	%		26.3	%		30.6	%		29.5	%
APAC		21.9	%		22.9	%		21.4	%		19.3	%
Total		100.0	%		100.0	%		100.0	%		100.0	%
Allocation of Stock-Based Compensation Expense
Cost of revenues — Product	$	5		$	9		$	15		$	18
Cost of revenues — Maintenance and service		2			2			4			4
Sales and marketing		504			311			899			581
Research and development		329			293			536			488
General and administration		1,137			675			1,661			1,207
Total	$	1,977		$	1,290		$	3,115		$	2,298