Exhibit 99.1

For Immediate Release

Corel Corporation Reports Third Quarter 2008 Financial Results

Revenue Up 10% Year over Year

OTTAWA, October 3, 2008 — Corel Corporation (NASDAQ:CREL) (TSX:CRE) today reported financial results for its third quarter ended August 31, 2008. Revenues in the third quarter of fiscal 2008 were $66.2 million, compared to $60.4 million in the third quarter fiscal 2007. GAAP net income in the third quarter of fiscal 2008 was $1.6 million, or $0.06 per basic and diluted share, compared to a GAAP net loss of $6.8 million, or $(0.27) per basic and diluted share, in the third quarter of fiscal 2007.

Non-GAAP adjusted net income for the third quarter fiscal 2008 was $10.2 million, or $0.39 per diluted share, compared to non-GAAP adjusted net income for the third quarter of fiscal 2007 of $8.1 million, or $0.31 per diluted share. Non-GAAP adjusted EBITDA in the third quarter of 2008 was $15.8 million, compared to $13.5 million in the third quarter of 2007.

“Corel delivered a strong third quarter, posting revenue growth across all our key business units and geographies,” said Kris Hagerman, Interim Chief Executive Officer, Corel Corporation. “Corel’s solid performance in a challenging economic environment is a testament to the commitment of our global team and to the quality and value our products deliver to millions of customers worldwide.”

Revenues for the nine months ended August 31, 2008 were $198.8 million, compared to revenues of $178.0 million for the nine months ended August 31, 2007. GAAP net income for the nine months ended August 31, 2008 was $2.5 million, or $0.10 per basic and diluted share, compared to a GAAP net loss of $16.3 million, or $(0.66) per basic and diluted share, for the nine months ended August 31, 2007.

Non-GAAP adjusted net income for the nine months ended August 31, 2008 was $26.4 million, or $1.01 per diluted share, compared to non-GAAP adjusted net income for the nine months ended August 31, 2007 of $20.7 million, or $0.80 per diluted share. Non-GAAP adjusted EBITDA for the nine months ended August 31, 2008 was $44.0 million, compared to $37.4 million for the nine months ended August 31, 2007.

Fourth Quarter Fiscal 2008 Guidance

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

— Revenue in the range of $71 million to $75 million.

— GAAP net income in the range of $4.0 million to $6.0 million and non-GAAP adjusted net income in the range of $14.0 million to $16.0 million.

— GAAP earnings per share in the range of $0.15 to $0.22 and non-GAAP earnings per share in the range of $0.52 to $0.60.

Fiscal 2008 Guidance

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

— Revenue in the range of $270 million to $274 million.

— GAAP net income of $6.5 million to $8.5 million and non-GAAP adjusted net income of $40.5 million to $42.5 million.

— GAAP earnings per share of $0.25 to $0.32 and non-GAAP earnings per share of $1.54 to $1.62.

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) 857-6173 or (719) 325-4751 approximately 5 minutes prior to the 8:00 AM 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 audio replay will be available between 11:00 AM ET October 3, 2008 and 12:00 AM ET October 17, 2008 from Corel’s Investor Relations website or by calling (888) 203-1112 or (719) 457-0820, Passcode: 7387664.

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 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, 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 such other filings 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 are 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® Painter™, Corel DESIGNER® Technical Suite, Corel® Paint Shop Pro® Photo, 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.

© 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 August 31, 2008
(in thousands, except per share data; unaudited)

	Three Months ended						Nine Months ended
	August 31,			August 31,			August 31,			August 31,
Consolidated Condensed Statement of Operations	2008			2007			2008			2007
Revenues — Product	$	59,725		$	55,018		$	179,336		$	161,875
Revenues — Maintenance and services		6,503			5,352			19,480			16,161
Total revenues		66,228			60,370			198,816			178,036
Cost of revenues — Product		15,218			12,167			44,453			34,690
Cost of revenues — Maintenance and services		113			244			412			663
Amortization of intangible assets		6,418			6,925			19,250			19,055
Total cost of revenues		21,749			19,336			64,115			54,408
Gross margin		44,479			41,034			134,701			123,628
Operating expenses
Sales and marketing		17,941			17,590			58,373			52,580
Research and development		10,610			11,939			34,417			34,605
General and administration		8,378			7,763			25,829			25,000
Acquired in-process research and development		—			—			—			7,831
InterVideo integration expense		—			2,220			—			3,865
Restructuring		293			—			918			—
Total operating expenses		37,222			39,512			119,537			123,881
Income (loss) from operations		7,257			1,522			15,164			(253	)
Other expenses (income)
Interest Income		(123	)		(112	)		(342	)		(934	)
Interest expense		3,663			4,307			11,103			12,768
Amortization of deferred financing fees		270			270			810			804
Expenses associated with Special Committee review		992			—			1,697			—
Other non-operating expense (income)		1,034			(497	)		(328	)		(650	)
Income (loss) before income taxes		1,421			(2,446	)		2,224			(12,241	)
Income tax (recovery) provision		(177	)		4,314			(274	)		4,082
Net income (loss)	$	1,598		$	(6,760	)	$	2,498		$	(16,323	)
Net loss per share:
Basic	$	0.06		$	(0.27	)	$	0.10		$	(0.66	)
Fully diluted	$	0.06		$	(0.27	)	$	0.10		$	(0.66	)
Weighted average number of shares:
Basic		25,704			25,041			25,570			24,828
Fully diluted		26,248			25,041			26,192			24,828

Consolidated Condensed Balance Sheet

	August 31,			November 30,
	2008			2007
Assets
Current assets:
Cash and cash equivalents	$	37,137		$	24,615
Restricted cash		159			217
Accounts receivable
Trade, net		28,485			41,092
Other		3,236			118
Inventory		1,260			729
Income taxes recoverable		1,760			1,470
Prepaids and other current assets		3,279			3,276
Total current assets		75,316			71,517
Capital assets		9,920			8,971
Intangible assets		72,925			92,010
Goodwill		88,643			88,643
Deferred financing and other long-term assets		5,419			5,696
Total assets	$	252,223		$	266,837
Liabilities and shareholders’ deficit
Current liabilities:
Accounts payable and accrued liabilities	$	54,569		$	67,290
Income taxes payable		1,464			723
Deferred revenue		12,588			15,707
Current portion of long-term debt		16,595			2,249
Current portion of obligations under capital leases		708			767
Total current liabilities		85,924			86,736
Deferred revenue		2,236			2,365
Deferred income tax liability		17,054			20,754
Obligations under capital leases		1,302			2,114
Income taxes payable		13,139			11,693
Accrued pension benefit obligation		1,075			1,116
Long-term debt		140,163			156,359
Total liabilities		260,893			281,137
Shareholders’ deficit
Share capital		44,042			40,652
Additional paid-in capital		7,970			5,926
Accumulated other comprehensive loss		(2,071	)		(721	)
Deficit		(58,611	)		(60,157	)
Total shareholders’ deficit		(8,670	)		(14,300	)
Total liabilities and shareholders’ deficit	$	252,223		$	266,837

Consolidated Condensed Statement of Cash Flows

	Three Months ended						Nine Months ended
	August 31,			August 31,			August 31,			August 31,
	2008			2007			2008			2007
Cash flows from operating activities
Net income (loss)	$	1,598		$	(6,760	)	$	2,498		$	(16,323	)
Depreciation and amortization		1,022			544			3,417			2,215
Amortization of deferred financing fees		270			270			810			804
Amortization of intangible assets		6,418			6,925			19,250			19,055
Stock-based compensation		1,839			1,770			4,954			4,068
Provision for bad debts		146			115			379			180
Deferred income taxes		(1,233	)		3,667			(3,700	)		1,352
Acquired in-process research and development		—			—			—			7,831
Unrealized (gain) loss on forward exchange contracts		—			(26	)		—			9
Loss on disposal of fixed assets		19			48			67			102
Gain on sale of investment		—			—			(822	)		—
Loss (gain) on interest rate swap recorded at fair value		(193	)		337			50			(245	)
Change in operating assets and liabilities		(3,667	)		(6,387	)		(7,367	)		(3,321	)
Cash flows provided by operating activities		6,219			503			19,536			15,727
Cash flows from financing activities
Restricted cash		2			500			58			500
Proceeds from operating line of credit		—			—			—			48,000
Repayments on operating line of credit		—			(6,000	)		—			(41,000	)
Proceeds from long-term debt		—			—			—			70,000
Repayments of long-term debt		(755	)		(399	)		(1,850	)		(1,479	)
Repayments of capital lease obligations		(318	)		(128	)		(657	)		(128	)
Financing fees incurred		—			(4	)		—			(1,681	)
Proceeds from exercise of stock options		231			1,298			485			3,987
Other financing activities		—			(272	)		—			(221	)
Cash flows provided by (used in) financing activities		(840	)		(5,005	)		(1,964	)		77,978
Cash flows from investing activities
Purchase of InterVideo Inc, net of cash acquired		—			(203	)		—			(121,357	)
Purchase of long lived assets		(1,657	)		(1,441	)		(4,956	)		(2,159	)
Cash flows used in investing activities		(1,657	)		(1,644	)		(4,956	)		(123,516	)
Effect of exchange rate changes on cash and cash equivalents		—			(7	)		(94	)		38
Increase (decrease) in cash and cash equivalents		3,722			(6,153	)		12,522			(29,773	)
Cash and cash equivalents, beginning of period		33,415			27,410			24,615			51,030
Cash and cash equivalents, end of period	$	37,137		$	21,257		$	37,137		$	21,257

Non-GAAP Results

(In thousands, except per share data)

	Three Months ended						Nine Months ended
	August 31,			August 31,			August 31,			August 31,
	2008			2007			2008			2007
Non-GAAP Adjusted Net Income Calculation:
Net income (loss)	$	1,598		$	(6,760	)	$	2,498		$	(16,323	)
Amortization of intangible assets		6,418			6,925			19,250			19,055
Tax benefit on amortization of intangible assets		(1,233	)		(1,340	)		(3,700	)		(3,655	)
Tax expense on write-off of deferred tax asset		—			5,007			—			5,007
Stock-based compensation		1,839			1,770			4,954			4,068
Restructuring		293			—			918			—
InterVideo integration expense		—			2,220			—			3,865
Expenses associated with Special Committee review		992			—			1,697			—
Acquired in-process research and development		—			—			—			7,831
Amortization of deferred financing fees		270			270			810			804
Non-GAAP Adjusted Net Income	$	10,177		$	8,092		$	26,427		$	20,652
Percentage of revenue		15.4	%		13.4	%		13.3	%		11.6	%
Pro-forma diluted non-GAAP adjusted net income per share	$	0.39		$	0.31		$	1.01		$	0.80
Shares used in computing proforma diluted non-GAAP adjusted net income per share		26,248			25,888			26,192			25,716
Non-GAAP Adjusted EBITDA Calculation:
Cash flows provided by operating activities	$	6,219		$	503		$	19,536		$	15,727
Change in operating assets and liabilities		3,667			6,387			7,367			3,321
Interest expense, net		3,540			4,195			10,761			11,834
Income tax (recovery)		(177	)		4,314			(274	)		4,082
Deferred income taxes		1,233			(3,667	)		3,700			(1,352	)
Provision for bad debts		(146	)		(115	)		(379	)		(180	)
Unrealized loss on forward exchange contracts		—			26			—			(9	)
Gain on sale of investment		—			—			822			—
Gain (loss) on interest rate swap		193			(337	)		(50	)		245
Loss on disposal of fixed assets		(19	)		(48	)		(67	)		(102	)
Expenses associated with Special Committee review		992			—			1,697			—
InterVideo integration expense		—			2,220			—			3,865
Restructuring		293			—			918			—
Non-GAAP Adjusted EBITDA	$	15,795		$	13,478		$	44,031		$	37,431
Percentage of revenue		23.8	%		22.3	%		22.1	%		21.0	%

Other Supplemental Information
(In thousands)

		Three Months ended						Nine Months ended
		August 31,			August 31,			August 31,			August 31,
		2008			2007			2008			2007
Revenue by Product Segment
	Graphics and Productivity	$	37,913		$	33,683		$	113,357		$	102,264
	Digital Media		28,315			26,687			85,459			75,772
	Total	$	66,228		$	60,370		$	198,816		$	178,036
	As percentage of revenues
	Graphics and Productivity		57.2	%		55.8	%		57.0	%		57.4	%
	Digital Media		42.8	%		44.2	%		43.0	%		42.6	%
	Total		100.0	%		100.0	%		100.0	%		100.0	%
Revenue by Geography
	Americas	$	33,000		$	31,426		$	96,690		$	91,634
	EMEA		18,151			14,566			58,728			49,332
	APAC		15,077			14,378			43,398			37,070
	Total	$	66,228		$	60,370		$	198,816		$	178,036
	As percentage of revenues
	Americas		49.8	%		52.1	%		48.6	%		51.5	%
	EMEA		27.4	%		24.1	%		29.5	%		27.7	%
	APAC		22.8	%		23.8	%		21.8	%		20.8	%
	Total		100.0	%		100.0	%		100.0	%		100.0	%
Allocation of Stock-Based Compensation Expense
	Cost of revenues — Product	$	4		$	15		$	19		$	33
	Cost of revenues — Maintenance and service		2			3			6			7
	Sales and marketing		459			468			1,358			1,049
	Research and development		232			369			767			857
	General and administration		1,142			915			2,804			2,122
	Total	$	1,839		$	1,770		$	4,954		$	4,068