Fremont, California, November 26, 2008 – S3 Graphics, a leading provider of graphics and multimedia technologies, today announced it will bundle Corel® WinDVD® for Blu-ray™ playback on the Chrome 400/500 Series graphics cards. The seamless integration of S3 Graphics’ ChromotionHD™ 2.0 video engine on Chrome 400/500 GPUs and the world’s leading playback software, Corel WinDVD, gives users an incredibly vivid, cinematic HD playback experience for single and multiple (Picture-in-Picture) video streams on high-resolution digital displays.

S3 Graphics ChromotionHD engine uses the power of Corel WinDVD to deliver high-quality HD decoding for playback of the latest video Codecs, including H.264, VC-1, and MPEG-2 for Blu-ray movies. The ChromotionHD 2.0 is built around the concept of programmability that allows the engine to support a wide range of decoding and video acceleration features for high-quality Blu-ray playback and streaming digital video content, improving system performance and power draw by reducing CPU usage.

The ChromotionHD 2.0 video engine includes full bitstream decoding, inverse transform, motion compensation, and in-loop deblocking, for a more efficient decode process that offloads multimedia intensive tasks from the CPU to the GPU. These architectural and key power-saving features continue to make S3 Graphics the industry’s power efficiency and performance-per-watt leader.

“We are excited about the partnership with Corel in offering consumers another platform that supports HD content for an incredible digital entertainment experience,” said Dr. Ken Weng, General Manager for S3 Graphics. “Through the combination of WinDVD playback software and the S3 Graphics ChromotionHD video engine, users can now bring true digital multimedia to a broad spectrum of desktop and notebook PCs.”

“Corel is pleased S3 Graphics has selected WinDVD to provide a complete HD viewing solution with its graphics processors,” said James Carrington, Senior Director, OEM and Strategic Product Marketing, Digital Media at Corel. “With WinDVD, the world’s number one disc and video playback software, users will enjoy superior performance and quality benefits resulting in the ultimate HD viewing experience on their computers."

Please visit www.s3graphics.com for more information about ChromotionHD 2.0 and the DX10.1 Chrome 400/500 Series GPUs.

Availability and Licensing WinDVD® is available through Corel resellers worldwide and online at www.corel.com.

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®, WinDVD® and iGrafx®. 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, China, Taiwan, and Japan. Corel's stock is traded on the NASDAQ under the symbol CREL and on the TSX under the symbol CRE.

About S3 Graphics S3 Graphics is a leading provider of innovative graphics visualization technologies for the notebook and desktop markets. As a quality supplier to the OEM and retail markets, S3 Graphics powers consumer, corporate and multimedia platforms to bring best-in-class energy efficiency, graphics/video performance, and visual features to the user. Our long-term commitment to customers is to bring reliability, quality, performance and state-of-the-art features to the forefront of PC applications. For more information, visit the Company’s website at www.s3graphics.com.

S3 Graphics PR Contacts

US: Benson Tao International: Stewart Haston Phone: (510) 687-4990 Phone: +886-2-2218-5452 ext 7574 Fax: (510) 687-4901 Fax: +886-2-8218-6752 Email: BensonTao@s3graphics.com Email: StewartHaston@s3graphics.com