Corel/Jasc FAQ

1Q. Why did Corel decide to acquire Jasc?
1A. Jasc is one of the leading providers of digital photography and imaging software for users at all skill levels, from the novice to the business professional. Its acclaimed Paint Shop family™ of products has won more than 70 awards from major computer and software publications worldwide. Renowned as an innovator in the fast-growing digital photography sector, Jasc has a devoted following of consumer and business users. No other vendor can match the depth and breadth of the Paint Shop family of digital photography and image editing software serving users at all skill levels, from novices to seasoned professionals.

With this acquisition, Corel can now provide users of graphics software a complete migration path from the most basic picture organizing and sharing, to image improvement and retouching, all the way to advanced image editing and graphics creation. The Paint Shop product family increases Corel's coverage in the overall graphics market significantly by adding the sizable consumer and intermediate business professionals market segments to Corel's existing base. Corel will now serve a combined base of 60 million customers worldwide with an extended software portfolio that combines innovative photo editing and graphics creation, vector illustration and technical graphics products along with Corel's popular WordPerfect line of products.

We are also excited about the tremendous synergy between Corel and Jasc. Like Corel, Jasc serves value-conscious businesses and consumers seeking innovative, reliable and easy-to-use software. Both companies have long enjoyed strong distribution channel partnerships. Our combined global distribution network will be extremely strong with more than 5,000 value-added resellers serving 75 countries around the globe.

2Q. How will Jasc and Corel customers benefit from this acquisition?
2A. Jasc customers can be assured that Corel will put the power of its significant R&D resources behind the Paint Shop family. We will continue the rich history of innovation that has characterized the Paint Shop family for the last thirteen years. Jasc customers will have greater access to a wider portfolio of products and an easier migration path from entry-level graphics products up to professional suites. And, they will find it easier to access products through our wider global and sales distribution network. The combined Corel and Jasc distribution network features 5,000 value-added resellers, over 50 major retailers serving 75 countries and a strong network of Master Resellers in key international markets.

With the addition of the Paint Shop family to Corel's WordPerfect Office Suite, CorelDRAW Graphics Suite and Corel Painter product portfolios, Corel customers will have greater access to one of the strongest software portfolios in the packaged software industry. Over time, as we evaluate opportunities for integrated suites and product enhancements, our customers will see new innovations from Corel in many key areas.

3Q. How does Jasc fit into Corel's focused product strategy?
3A. The addition of the Paint Shop family expands Corel's reach in major graphics market segments. The Paint Shop family provides a powerful range of graphics and imaging software products that will capture millions of new customers immediately – individuals using digital software for personal, home and business use, focusing mainly on hobbies, photo management and photo editing. It is a strong complementary offering to the CorelDRAW Graphics Suite and the Corel Painter natural media painting and illustration software, which primarily serves business, design and photography professionals

With the addition of the Paint Shop™ Pro®, Paint Shop™ Pro® Studio and Paint Shop™ Photo Album™ products, Corel can now market both standalone and suites of digital photography and imaging software to existing and new customers. Over the long term, Corel will expand its footprint with consumers who regularly purchase digital photography software – one of the world's fastest growing market segments.

4Q. Will Corel continue to support the Jasc Paint Shop family?
4A. Absolutely!!! Corel will continue to develop the Paint Shop family of products and provide service and support for Jasc customers.

5Q. Are there plans to integrate Jasc functionality into any of Corel's existing product lines?
5A. Corel will continue to market the Paint Shop family as stand alone products. We will, over time, evaluate how the rich product portfolios can be integrated to meet the evolving needs of our growing customer base. We anticipate that there will be potential, over the long term, to offer broader, integrated suites.

6Q. How will this acquisition impact Corel's growth?
6A. Corel's products have demonstrated robust growth over the past 12 months and Jasc's products have grown steadily as well. We anticipate that this growth will only accelerate over time. The addition of the Jasc product line will allow Corel to compete in the high-growth digital photography sector. InfoTrends/CAP Ventures reports the worldwide market for consumer digital cameras is expected to expand at a CAGR of approximately 20%, to a projected 100 million units that will ship in 2008, up from 45 million in 2003. A recent survey from InfoTrends stated that 55% of digital camera users reported purchasing additional software for managing and enhancing their digitally captured photos.

7Q. Will Jasc retain its company headquarters in Minneapolis?
7A. Corel corporate headquarters will remain in Ottawa, Ontario, Canada. Corel will add the former Jasc facility in Minneapolis to its growing roster of offices around the world.

8Q. Will Corel retain the Jasc employee base?
8A. Absolutely!!! Jasc employees are an important part of Corel's future success. Corel values the talent and experience of this employee base.

9Q. Will Corel make any changes to the Jasc distribution network?
9A. Jasc's wide network of international Master Representatives and other channel partners has been a critical part of its success. Corel's mixture of direct distribution and the market maker model has been equally successful. Over the next few months, our objective will be to merge the best of both worlds to offer even more effective market coverage for the expanded product range.

10Q. Is Corel committed to the long-term growth and evolution of Jasc's product lines?
10A. Yes. Corel will actively support new R&D initiatives for the Paint Shop family, ensuring that the next-generation Paint Shop products continue to flourish.

11Q. Will Jasc's current senior management team remain in tact?
11A. The Jasc senior management team offers a wealth of talent, experience and expertise. Key members of Jasc's executive management team will join Corel.

12Q. When can I start buying Corel products on Jasc's eStore and vice versa? When will there be integrated eStores?
12A. We are evaluating plans for a combined Web presence very carefully to ensure that there is no interruption to the key information, customer services, and buying experience that our customers expect. For the time being, Corel and Jasc will retain separate Web sites and online stores.

13Q. Will there continue to be public and private beta programs for Jasc products?
13A. These programs have been very successful for both companies. While we have every intention of ensuring that the beta programs serve the needs of our combined customer base, we are still in the early evaluation and integration phases.

14Q. Did Corel complete this acquisition to be more competitive against Microsoft and Adobe?
14A. Our goal really isn't to "keep up with the Joneses." Instead, our entire focus is on finding ways to serve our growing base of value conscious consumers and business customers with innovative software solutions that are competitively priced and easy-to-use.

15Q. Will the Jasc Paint Shop products replace any of the existing Corel products?
15A. Corel PHOTO-PAINT is an integral part of the CorelDRAW Graphics Suite; it is one of three core applications that are integrated in the suite. It is not a standalone product. With the Paint Shop family in our portfolio, our customers can access standalone digital photography and imaging software solutions. There are currently no plans to replace Corel PHOTO-PAINT with Paint Shop Pro. Corel will continue to market the Paint Shop family as stand alone products.

Corel, WordPerfect, CorelDRAW, Painter, Natural-Media and the Corel logo are trademarks or registered trademarks of Corel Corporation and/or its subsidiaries. Paint Shop Pro, Paint Shop Pro Studio and Paint Shop Photo Album are registered trademarks of Jasc Software, Inc.

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