Corel PhotoImpact X3 digital photo editing software is aimed at the family memory keeper and the graphic arts hobbyist. “Project-oriented users will find that PhotoImpact X3 has the perfect mix of easy-to-use editing capabilities, creative project templates and digital art - all at an affordable price.” said Denise MacDonell, Director, Product Management, Digital Imaging at Corel. With a suggested retail price of $69.99 (US and Canada), PhotoImpact X3 is available now.

Corel Press Release

Give Your Photos Maximum Impact with Corel’s New PhotoImpact® X3

Newest Release is Packed with Fun Photo Projects, Easy One-Click Fixes and New Digital Art Tools to Make Creative Projects Look Their Best

OTTAWA - January 15, 2008 - Corel Corporation (NASDAQ:CREL; TSX:CRE), a leading developer of graphics, productivity and digital media software, today announced the launch of PhotoImpact® X3, its award-winning digital photo editing software. PhotoImpact X3 combines easy-to-use photo editing, inspiring photo projects and amazing digital art to make digital photography and image creativity fun, fast and easy.

PhotoImpact is designed for the family memory keeper and the graphic arts hobbyist with its quick, effective photo enhancement tools and fun photo projects. Graphics hobbyists can paint, draw and experiment for hours while video enthusiasts can take their projects to the next level by exporting DVD menus from PhotoImpact directly into Corel’s DVD MovieFactory® and VideoStudio®.”

“Corel’s Digital Media solutions offer the broadest portfolio of products to enhance the way users live, work and play,” said Denise MacDonell, Director, Product Management, Digital Imaging at Corel. “Project-oriented users will find that PhotoImpact X3 has the perfect mix of easy-to-use editing capabilities, creative project templates and digital art - all at an affordable price.”

Make Every Photo Special
PhotoImpact X3 is perfect for quickly enhancing your photos with one-click corrections and easy-to-use composition tools. New enhancement features in PhotoImpact X3 include:

Enhanced ExpressFix - Handy ExpressFix mode is now even easier to use and provides a broader range of tools for quickly improving photos. With a new natural order, tools are presented in the sequence in which you most often use them, making workflow more intuitive.

New Next-Generation Crop Tools - New tools include the Rule of Thirds Crop, which aligns major photo elements along the lines for more balanced and dynamic images and a Golden Ration Crop, a classic technique that helps in establishing focus and composing powerful images.

New Corel MediaOne Plus Digital Media Management - Keep track of all your digital images with this complete media management suite. Import, tag and sort your photos and videos and find any image fast. Use Smart Collections to group your photos and the slideshow feature to create masterpieces to send to friends and family.

Take Your Photos to New Places
The Share button offers easy wizards to create fun photo projects and gifts. Choose from more than 200 customizable templates for a wide range of ways to share your photos. New features include:

Enhanced Calendar Wizard - Showcase your photos in the perfect gift. PhotoImpact X3 even lets you mark special dates like birthdays or anniversaries with fun icons.

New Comic Strips - The creative way to have fun with your photos, comic strips let you choose a set of photos and apply a “cartoon” visual effect to make them look hand-drawn. By applying a layout template and adding speech bubbles, you can create a single-panel cartoon, a 3-strip comic or even your own graphic novel.

New Collages - It only takes minutes to combine a group of photos into an attractive montage that looks like it took hours to make.

Create Amazing Digital Art
With more creative flair than any other editor in its class, the sky has always been the limit with PhotoImpact.

New Cloud Pen - The only product feature of its kind, the Cloud Pen enables you to paint natural-looking clouds and add fun effects to the sky. Choose from cumulus, cirrus and stratus cloud types or get creative with fantasy cloud animals, skywriting or smoke signals.

New Corel® PainterTM Essentials 3 - Draw or paint original artwork, or enhance your photos with paint effects with this award-winning product.

Graphics Tools for Video Enthusiasts
No other image editor offers so many video graphics tools - from fixing photos for slideshows to creating the perfect menu, PhotoImpact is the perfect companion for every video project.

New Slideshow Prep Wizard - Make sure your photos look their best in a DVD slideshow with a selection of sophisticated frames, drop-shadow and color-gradient background styles. Import your photos into VideoStudio or DVD MovieFactory to create your slideshow.

Enhanced DVD Content - Present your video projects like a pro. Design and print DVD labels and case covers that match the menus in DVD MovieFactory and VideoStudio.

Pricing and Availability
With a suggested retail price of $69.99 (US and Canada), PhotoImpact X3 is available starting today through www.corel.com and in the coming weeks through Corel’s global channel partners. Upgrades from PhotoImpact 10, 11 and 12 start at $49.99 SRP (US and Canada).

About Corel Corporation
Corel is a leading developer of graphics, productivity and digital media software with more than 100 million users worldwide. The Company’s product portfolio includes some of the world’s most popular and widely recognized software brands including CorelDRAW® Graphics Suite, Corel® Paint Shop Pro®, Corel® Painter™, Corel DESIGNER®, Corel® WordPerfect® Office, WinZip® and iGrafx®. In 2006, Corel acquired InterVideo, makers of WinDVD®, and Ulead, a leading developer of video, imaging and DVD authoring software. Designed to help people become more productive and express their creative potential, Corel’s software strives to set a higher standard for value with full-featured products that are easier to learn and use. The industry has responded with hundreds of awards recognizing Corel’s leadership in software innovation, design and value.

Corel’s products are sold in more than 75 countries through a well-established network of international resellers, retailers, original equipment manufacturers, online providers and Corel’s global websites. The Company’s headquarters are located in Ottawa, Canada with major offices in the United States, United Kingdom, Germany, Taiwan, China and Japan. Corel’s stock is traded on the NASDAQ under the symbol CREL and on the TSX under the symbol CRE.

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