**Exhibit 13.1**

****Management's Discussion and Analysis of
Financial Condition and Results of Operations****

****

Overview****

For the purposes of this discussion, unless the context otherwise requires, "Corel"
refers to the consolidated
operations of Corel Corporation and its wholly owned subsidiaries, Corel Corporation Limited, Corel International
Corporation, Corel, Inc., and Corel Corporation (U.S.A.), while "the Company" refers to the parent, Corel
Corporation.  All dollar amounts included herein are expressed in thousands of US$ unless otherwise noted.

Corel develops, manufactures, licenses, sells and supports two main types of software
products, creative products and
business applications.  These products are available on the Windows, MacIntosh and Linux environments.

On March 24, 2000, Corel entered into an agreement to purchase all of the assets
relating to the Painter, Bryce and
KPT family of graphic software products fromMetaCreations
Corporation of Santa Barbara California. The cash
purchase price for the assets was $10.0 million of which $2.0 million was paid on each of March 24, June 30 and
September 30, 2000, with the balance being payable in two further instalments of $2.0 million each on December 31,
2000 and January 31, 2001.

On June 28, 2000, the Company issued
7,299,270 common shares and 3,649,635 common share purchase warrants at
CDN $4.11 per unit for total gross proceeds of CDN $30.0 million.The values assigned to each of the components of
the unit were based on their relative fair values at the date of the transaction.  The warrants are exercisable until June
27, 2001 at a price of CDN $4.56 per common share.  In the event that all of the warrants are exercised, the Company
will issue an additional 3,649,635 common shares resulting in gross proceeds of CDN $16.6 million. As at November
30, 2000, 11,659 warrants have been exercised for gross proceeds of CDN $53,165.

On July 17, 2000, Corel purchased, and currently maintains a 23% interest in Hemera
Technologies, Inc., a privately
held company.  As consideration for these shares, Corel transferred its GraphicCorp division and related assets to
Hemera Technologies, Inc.  As of the effective date of the transaction, the fair value of the GraphicCorp division and
its related assets was estimated at $9.7 million and the shares were valued at this amount. No gain or loss was
recognized on the transfer.  In fiscal 2000, Corel's share of Hemera Technologies,
Inc.'s operating results was
nominal.

On August 15, 2000, Mr. James Baillie,
counsel to the law firm of Torys, and Mr. Larry O'Brien, Chair of Calian
Technology Ltd., were appointed to the Board of Directors following the Board of Directors' acceptance of the
resignation of Mr. William G. Davis for personal reasons.  Michael Cowpland resigned as President, Chief Executive
Officer and Chair of the Board of Directors of the Company. He continued to serve as a director and as a technology
advisor until his resignation as a director on January 25, 2001.  Also on August 15, 2000, Derek J. Burney, formerly
executive vice-president, engineering and chief technology officer of the Company was appointed interim President
and CEO and Mr. Baillie has been appointed as Chair of the Board of Directors. On October 2, 2000, Mr. Burney was
appointed President and CEO and appointed to the Board of Directors.

On October 2, 2000, Corel announced a strategic alliance with Microsoft Corporation
("Microsoft").  The Company
issued 24,000,000 Series A, participating convertible, non-voting, non-redeemable preferred shares to Microsoft for
total gross proceeds of $135.0 million ($5.625 per share).Each preferred share is
convertible into one common share
but not in the hands of Microsoft or its affiliates. As part of the share purchase agreement the Company is obligated to
file, with the United States Securities and Exchange Commission ("SEC") a resale registration statement for
24,000,000 common shares underlying these preferred shares.Under the terms of a
technology and services agreement
the companies will work together to support the development, testing and marketing of new products related to the
 .NET platform and, upon request from Microsoft at any time prior to October 2, 2003, Corel is obligated to provide 30
full time equivalents (20 developers and 10 testers) for a 12-month period to port the .NET platform from the
Windows platform to the Linux platform.  The Company has deducted from equity $3.0 million of the total money
received from Microsoft for this future possible obligation.

Forward Looking Statements

The following information contains forward-looking
statements, as defined by the United States Private Securities
Litigation Reform Act of 1995, involving Corel's expectations about future financial results and other matters.  These
statements reflect management's current forecast of certain aspects of Corel's future business.  These forward-looking
statements are subject to certain risks and uncertainties that could cause actual results of operations to differ materially
from historical results or current expectations.  The words "plan", "expect", "believe", "intend", "anticipate",
"forecast", "target", "estimate" and similar expressions identify forward-looking statements.  Risk factors include
shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological
shifts and other variables. Readers are referred to Corel's most recent reports filed with the Securities and Exchange
Commission for a more complete discussion of the other risks and uncertainties. The factors underlying forecasts are
dynamic and subject to change.  As a result, forecasts speak only as of the date they are given and do not necessarily
reflect Corel's outlook at any other point in time. Corel does not undertake to update or review these forward-looking
statements.

RESULTS OF OPERATIONS

Sales ****

Sales decreased 35% to $157.5 million in fiscal 2000 from $243.1 million in fiscal 1999.
This decrease was due
primarily to new versions of Corel's flagship products ,WordPerfect Office 2000 and CorelDRAW 9 Graphics Suite,
nearing the end of their life cycles in fiscal 2000. Sales were also negatively impacted in fiscal 2000 by lower product
prices, which were implemented in an attempt to gain market share.

Financial performance in fiscal 2000 as compared to the prior year was negatively
impacted primarily by the decline in
revenues. Corel has been impacted, as has the entire industry in Corel's belief, by the reduction in the amount of
product inventory traditionally held within the retail distribution channel. Corel released CorelDRAW 10 Graphics
Suite in early November 2000. Corel generally experiences an increase in revenues upon release of a major upgrade of
its flagship products. Corel also believes its results in fiscal 2000 were negatively impacted by concerns as to its
viability due to potential cash shortfalls during much of fiscal 2000.  There was no significant change in overall
revenues from fiscal 1998 to fiscal 1999.

****Sales by product
groups

The table below shows sales consisting of
creative products, business application products and other revenues
consisting primarily of Linux operating system products.  The comparative numbers have been reclassified to conform
with current presentation.****

****



|                               |  | ****Year ended November 30
|------------------------------ |  | --------------------------
|                               |  | ****2000                  
|                               |  |                           
|Creative products              |  | $     75,919              
|Business applications products |  | 78,917                    
|Other                          |  | 2,651                     
|Total sales                    |  | $157,487                  

Creative products revenues decreased 29% from $106.6 million in fiscal 1999 to $75.9
million in fiscal 2000.  This
decrease is primarily due to the release of CorelDRAW 10 Graphics Suite in the final month of the fiscal year.
CorelDRAW 9 Graphics Suite was released in May 1999, resulting in the inclusion of approximately eight months of
revenue in fiscal 1999 as opposed to one month of revenues of CorelDraw 10 Graphics Suite in fiscal 2000.  In fiscal
1999, creative products revenues declined 20% from $133.8 million to $106.6 million due to CorelDRAW 8 being
available for sale for the entire year in fiscal 1998. Creative products revenues are expected to increase approximately
20% in fiscal 2001 due primarily to increased demand for CorelDRAW 10 Graphics Suite, planned releases of
updates to the products acquired from Metacreations Corporation and the release of CorelDraw 10 Graphics Suite for
the MacIntosh operating system.  Included in creative products revenues are consumer applications products which
were relatively consistent from fiscal 1998 ($27.6 million) to fiscal 1999 ($24.0 million).  In fiscal 2000, as Corel
realigned itself and moved away from promoting these products, these revenues declined significantly and are no
longer managed or accounted for as a separate segment.

Business application products revenues
declined 41% from $132.9 million in fiscal 1999 to $78.9 million in fiscal
2000.  This is due primarily to the lack of any major product launches in fiscal 2000.  Sales for business applications
products increased from $112.0 million in fiscal 1998 to $132.9 million in fiscal 1999 due to the release of the then
latest version of the WordPerfect suite in May 1999.  The prior version, Corel WordPerfect Suite 8, was released in
fiscal 1997,  therefore a 24 month period existed between releases resulting in a full year of revenue in 1998.  With the
planned release of  WordPerfect Office 2002 in early spring 2001,  localized only in International English and
Canadian  French, revenues for business applications products in fiscal 2001 are expected to remain at their fiscal
2000 levels.

Other revenues, related primarily to Corel
LINUX OS, decreased 24% to $2.7 million in fiscal 2000 from $3.5 million
in fiscal 1999 due to the Company's focus on its core products.  Other revenues are expected to increase marginally in
the future with the introduction of professional services and other revenue sources.

******Sales by sales
channels

Corel distributes its products primarily through distributors (as retail packaged
products), OEM licences and corporate
licences. The table below shows sales by sales channels:

|                         |  | ****Year ended November 30
|------------------------ |  | --------------------------
|                         |  | ****2000                  
|                         |  | (in
thousands)            
|Retail packaged products |  | $80,069                   
|OEM licenses             |  | 17,640                    
|Corporate licenses       |  | 59,778                    
|Total sales              |  | $157,487                  



Retail packaged products and corporate licences are sold primarily through distributors.
Sales from retail packaged
products declined 43% from $140.2 million in fiscal 1999 to $80.1 million in fiscal 2000.  The decline in retail
packaged product sales is primarily due the decline in PC sales and the aforementioned change in the buying practices
of retail distributors.  In addition, for much of fiscal 2000, the core products were available only in releases nearing
the end of their life cycle.   Packaged product revenues decreased from $153.6 million in fiscal 1998 to $140.2 million
in fiscal 1999 due to a shift in focus from retail packaged products to corporate licenses and Year 2000 pressure.

OEM channel sales are licence fees from original equipment manufacturers.  These sales
decreased 35% from $27.0
million in fiscal 1999 to $17.6 million in fiscal 2000.  The decrease was due primarily to declining PC sales and
products reaching the end of their life cycles.  The increase to $27.0 million in fiscal 1999 from $23.3 million in fiscal
1998 was due primarily to increased OEM agreements for business applications products.

Corporate licenses declined 21% from $75.9
million in fiscal 1999 to $59.8 million in fiscal 2000.  This decrease is
primarily due to not having released new versions of WordPerfect during the year.  The 9% increase from $69.9
million in 1998 to $75.9 million in fiscal 1999 was due to Corel's enhanced focus on corporate customers.

The channel mix is not expected to materially change in the coming year.

****Sales by region****

The table below shows sales by region:

|            |  | ****Year ended November 30
|----------- |  | --------------------------
|            |  | ****2000                  
|            |  | (in
thousands)            
|Canada      |  | $13,181                   
|U.S.A.      |  | 83,355                    
|Europe      |  | 42,453                    
|Other       |  | 18,498                    
|Total sales |  | $157,487                  

Sales in North America declined 38% from $155.8 million in fiscal 1999 to $96.5 million
in fiscal 2000.  This is
primarily due to products reaching the end of their life cycle and the aforementioned change in distributors' buying
patterns.  A general decline in the retail market in North America also contributed to slower sales.  Revenues in North
America are expected to increase marginally in 2001 as Corel increases its focus on the North American market.

Declining sales in Germany, the Netherlands and the United Kingdom resulted in European
revenues declining 34%
from $64.1 million in fiscal 1999 to $42.5 million in fiscal 2000.  The decrease in sales in Europe from $73.1 million
in fiscal 1998 to $64.1 million in fiscal 1999 reflects large declines in revenues from Germany and France.   Revenues
in Europe are expected to decline modestly  in the coming year since WordPerfect Office 2002 will not be localized in
many local languages as was done historically.

Corel's products are sold primarily in US dollars in all regions other than  Europe. In
fiscal 2000, Corel began selling
in Euros for many of its European customers.  The relative weakness of the Euro to the U.S. dollar in fiscal 2000
impacted sales slightly.

****Cost of sales and gross profit

In cost of sales, Corel includes all costs associated with the acquisition of
components, the assembly of finished
products, product royalties, the amortization of software acquisition costs and shipping. Costs associated with
warehousing are included in selling, general and administrative expenses.  Software acquired for integration and sale
with Corel products has been capitalized and is currently being amortized over the greater of : a) the ratio that current
gross revenues bear to the total of current and anticipated future gross revenues or, b) the straight line method over the
remaining economic life generally estimated to be three to five years.

As products reached the end of their life cycle, inventory considered obsolete and
prepayments of royalties on certain
products were written off.  In fiscal 2000, a significant amount of inventory was deemed obsolete and $1.6 million of
prepaid royalties were written off.  This, combined with decreases in product prices, resulted in a decrease in gross
margin from 76% in fiscal 1999 to 70% in fiscal 2000.  The decrease in gross margin from 79% in fiscal 1998 to 76%
in fiscal 1999 is attributable to lower sales, increased inventory obsolescence and valuation adjustments.  On a go-forward basis,
Corel anticipates gross margin in the high 70 to low 80 percent range.

****Advertising
Expenses****

Advertising expenses include all marketing, advertising and trade show expenses. In
fiscal 2000, advertising expenses
decreased 31% from $48.0 million in fiscal 1999 to $33.3 million in fiscal 2000.  This was due primarily to Corel's
cost reduction plan that was implemented in May 2000.  In fiscal 1999, these expenses increased 15% from $41.8
million in 1998 primarily as a result of print advertising and trade shows to promote the latest versions of Corel's
products over the fourth fiscal quarter of that year.  In fiscal 2001, Corel plans to release several new products,
including WordPerfect Office 2002 and CorelDRAW 10 Graphics Suite for Macintosh. However, advertising
expenditures are expected to remain consistent with the cost reduction plan, allowing for a better focus of the monies
spent.

****Selling, general and administrative
expenses****

All selling expenses (except for advertising expenses) are included in this category
along with general and
administrative expenses, including expenses associated with warehousing inventory.  Selling, general and
administrative expenses increased 4% from $82.2 million  in fiscal 1999 to $85.7 million in fiscal 2000.  While a cost
reduction plan was implemented during the year, the benefits were not realized until the fourth quarter.  There were a
number of non-recurring charges such as severance, consulting fees and asset write-downs that resulted from the cost
reduction plan implemented during the year.

The increase in selling, general and administration expenses to $82.2 million in fiscal
1999 from $77.7 million in
fiscal 1998 resulted from new releases of Corel's two flagship products - CorelDRAW  9 Graphics Suite and
WordPerfect Office 2000.  Further expenses were incurred relating to Corel LINUX OS, which was also released
during the year. ****

Selling, general and administrative expenses are expected to be reduced significantly in
the future due to Corel's cost
restructuring plan.****

Research and development expenses****

Research costs are expensed as incurred.  Development costs related to software products
developed for sale are
expensed as incurred unless they meet the criteria for deferral under generally accepted accounting principles.

Research and development expenses are reported net of Canadian investment tax
credits

In fiscal 2000, gross research and development expenses were reduced by $4.5 million
(9%) to  $44.4 million from
$48.9 million primarily as a result of the cost reduction plan implemented in June 2000.  Netted against gross research
and development expenses is $0.5 million and $8.9 million of Canadian investment tax credits in fiscal 2000 and fiscal
1999 respectively.

In fiscal 1999, investment tax credits of $8.9 million related to the 1997 through 1999
taxation years were recognized
for accounting purposes as a result of an audit by the Canada Customs and Revenue Agency being completed during
the year.  Gross research and development expenses decreased over 1998 levels primarily due to employees that were
terminated as part of the restructuring in 1998 not being replaced.

Research and development expenses are expected to decline significantly in the future.
This is due primarily to the
cost reduction plan that resulted in the consolidation of the Irish localization facilities. Corel will not be localizing as
many products on a go forward basis. Also, with Corel shifting its focus to two main business lines, fewer resources
will be used to develop Corel LINUX OS.

****Depreciation and amortization expenses****

Depreciation and amortization expenses, which do not include the amortization of
purchased software, increased $1.0
million in fiscal 2000 to $7.4 million from $6.4 million in fiscal 1999 as result of significant purchases of computer
equipment made in the fourth quarter of fiscal 1999 having a full year of amortization.  The decrease to $6.4 million in
fiscal 1999 from $12.4 million in fiscal 1998 is a result of an aging asset base.  In fiscal 1998, a number of assets were
written off as a result of the restructuring that took place.

********Restructuring charge

Corel incurred a restructuring charge of $15.9 million in the third quarter of fiscal
1998.  The charge relates to the
costs associated with moving the research and development activity in Orem, Utah to the Ottawa, Ontario location.
Further discussion of the charge and its components may be found in Note 14 of the 2000 Consolidated Financial
Statements.

****Interest
expenses****

Interest expenses relates to Novell obligations for the acquisition of the WordPerfect
technology from Novell, Inc. and
is netted with interest income from term deposits.  In fiscal 2000, $3.0 million was accrued for interest charges
relating to proposed reassessments of prior year Canadian tax returns.  The decrease from $1.1 million in fiscal 1998
to $0.2 million in fiscal 1999 is a result of the decrease in the outstanding Novell obligation.

****Income taxes****

Corel's effective tax rates for fiscal 2000, 1999 and 1998 were 9.8%, 29.8% and 14.9%;
respectively. These effective
tax rates vary from Corel's statutory tax rate of 44.3% primarily due to foreign tax rate differences associated with
Corel's international operations.  In fiscal 1999, Corel recorded a tax benefit of accounting losses in the 1996 and
1997 taxation years.

********Cost reduction plan**

Cost reduction actions commenced in late April 2000 when Corel began to curtail
discretionary spending, particularly
in the area of direct marketing and travel.  In early May 2000, Corel proceeded to identify broader areas of spending
cuts, namely in the areas of future hirings, capital purchases and other discretionary purchases.  In mid-May 2000,
Corel began to consider employee terminations and commenced a formal process of planning for spending cuts that
would reduce its quarterly expenses to a level commensurate with expected achievable revenues. Consideration was
also given to the amount of spending that had occurred in the first quarter and spending estimates for the second
quarter, with a normalization factor for what was considered non-recurring.  In summary, this called for a quarterly
cost structure of $45.0 million or a $10.0 million quarterly reduction from normalized spending rates.



On May 16, 2000, Corel announced that it had undertaken a cost reduction plan with the
intention of eliminating $40
million in costs on an annualized basis. The cost reduction plan has been implemented in a series of steps.

On June 8, 2000, Corel announced a reduction in its workforce of approximately 320
positions from  a combination of
employee terminations, termination of contract positions, elimination of vacant positions, attrition and termination of
the services of independent contractors.  The costs of severance and other termination payments, estimated at $1.6
million, were recorded in Corel's third fiscal quarter ended August 31, 2000. The estimated annualized cost saving
from the workforce reduction, without taking into account one time implementation charges, is expected to be
approximately $11.0 million.

On September 6, 2000, Corel announced that it had identified the remaining components of
the previously targeted
$40.0 million in expenditure cuts, designed to realign its costs with its expected achievable revenues. As part of this
plan, Corel announced the proposed consolidation of its engineering operations based in Dublin, Ireland, to its
corporate headquarters in Ottawa, Canada. A total of 139 positions at the Dublin facility were eliminated as a result of
the move with the estimated costs of severance and other termination payment, being approximately $0.85 million
recorded in the third quarter of fiscal 2000 and approximately $1.4 million in additional costs recorded in the fourth
quarter of fiscal 2000.

****Liquidity and capital resources

As of November 30, 2000, Corel's principal sources of liquidity included cash and cash
equivalents of approximately
$127.4 million, and trade accounts receivable of $28.6 million. Cash equivalents consist of overnight call loans to a
major Canadian bank totalling $14.0 million and a loan of $110.0 million to a major Canadian corporation,
guaranteed by a major Canadian bank.  At November 30, 2000, $1.1 million of cash was restricted for corporate credit
cards and severance payments related to the closing of the Irish localization facilities.



Cash used in operations was $28.0 million for fiscal 2000 compared to cash provided by
operations of $9.9 million for
fiscal 1999. The decrease of $37.9 million was primarily due to the net loss of $55.3 million in fiscal 2000 as
compared to the net income of $16.7 million in fiscal 1999.

Trade accounts receivable, net of provisions, decreased from the November 30,1999
balance of $54.8 million to $28.6
million as a result of a decrease in gross accounts receivable.  This was a  result of lower sales volume that was
achieved during the year.  This reduction in gross accounts receivable was off-set by a reduction in the provision for
sales returns to reflect the reduced level of products in the distribution channel.

Accounts payable and accrued liabilities decreased from $50.3 million on November 30,
1999 to $28.4 million at
November 30, 2000 mainly due to decreases in volume related to the cost reduction plan as well as payment of many
of the previously accrued liabilities.

Financing activities provided $144.4 million in fiscal 2000 compared to $3.5 million in
fiscal 1999.  The source of
cash in fiscal 2000 through financing activities was the issuance of common and preferred shares.  During the year,
the issuance of common shares through employee stock options and a public offering of common shares and common
share purchase warrants resulted in net proceeds of $22.3 million.  In fiscal 1999, $12.8 million of common shares
were issued to employees.  In fiscal 2000, the issuance of preferred shares to Microsoft Corporation provided $130.7
million. The use of cash in fiscal 2000 and fiscal 1999 was the repayment of the Novell obligations.  Repayment of
Novell obligations decreased in fiscal 2000 as a result of Corel reaching an agreement with Novell whereby the
balance due was fixed and will be repaid in three equal payments of $5.0 million.  One of these payments was made
prior to November 30, 2000.

Investing activities used $7.0 million in fiscal 2000 compared
to $17.7 million in fiscal 1999.  The source of cash from
investing activities was primarily proceeds from sales of shares of GraphOn Corporation ("GraphOn") of  $14.6
million.  Uses of cash for investing activities includes expenditures for capital assets of $19.5 million in the fiscal
2000 compared to $19.2 million in fiscal 1999.

On September 19, 2000, the Company announced it had entered into a share purchase
agreement with an institutional
investor. Subject to the terms and conditions of this agreement, the Company may issue and sell to the investor up to
14,690,000 shares in periodic draw down periods over 24 months, if all associated warrants are exercised.  Corel has
not issued any shares related to this agreement as of November 30, 2000.

At November 30, 2000, Corel's capital resource commitments consisted primarily of lease
arrangements for office
space. No significant commitments exist for future capital expenditures. Corel believes available balances of cash and
cash equivalents combined with the proceeds of the shares issued and issuable as described above are sufficient to
meet its working capital requirements for the foreseeable future.

Other Matters

New accounting pronouncements

In fiscal 1998, the Financial Accounting Standards Board ("FASB") issued SFAS 133,
"Accounting for Derivative
Instruments and Hedging Activities", ("SFAS 133") which establishes standards for derivative instruments and
hedging activities.  It requires that all derivatives be recognized as either assets or liabilities on the Balance Sheet and
be measured at fair value.  SFAS 133 is effective for fiscal years beginning after June 15, 1999, which is the fiscal
year beginning December 1, 1999 for the Company.  Prior periods should not be restated.In June 1999, the FASB
issued SFAS No. 137, which delays the effective date of SFAS 133 until fiscal years beginning after June 15, 2000,
which is the fiscal year beginning December 1, 2000 for the Company.The Company
believes the adoption of this
pronouncement will not have a material impact on its results from operations or financial position.

In fiscal 2000, the United States
Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin
("SAB") No. 101, Revenue Recognition in Financial Statements and its related interpretations. The SAB summarizes
certain of the SEC staff views in applying generally accepted accounting principles to revenue recognition in financial
statements. This SAB is effective beginning the Company's first quarter of fiscal 2001.The Company does not expect
the adoption of this SAB to have a material impact on its results of operations or financial position.

****Year 2000

The Year 2000 issue arises because many computerized systems use two digits rather than
four to identify a year.
Date-sensitive systems may recognize the year 2000 as 1900 or some other date, resulting in errors when information
using Year 2000 dates are processed.  In addition, similar problems may arise in some systems which use certain dates
in 1999 to represent something other than a date.  Although the change in date has occurred, it is not possible to
conclude that all aspects of the Year 2000 issue that may affect the entity, including those related to customers,
suppliers or other third parties, have been fully resolved.

****Financial Instruments

Interest rate risk

****

Corel's exposure to market risk for changes in interest rates relates primarily to its
investment portfolio of cash
equivalents and marketable securities.  Corel does not use derivative financial instruments in its investment portfolio.
The stated objectives of Corel's investment guidelines are safety of principal, liquidity, maximization of yield, and
diversification of risk.  The Company places its investments with high credit quality issuers, principally term deposits
with a major Canadian financial institution.  The marketable securities portfolio includes only those securities with
active secondary or resale markets to ensure portfolio liquidity.  A substantial reduction in overall interest rates could
significantly reduce Corel's interest income.

The table below presents principal amounts and related weighted average interest related
by date of maturity for
Corel's interest bearing investment portfolio.  Weighted average interest rates include the after-tax yield on a debt
security of a major Canadian corporation.   At November 30, 2000, the total investment portfolio had maturity dates
prior to December 31, 2000.

Weighted average
Fair value atMaturity balance
after-tax yield
November 30, 2000Cash equivalents
$14,002
4.16%
$14,002Debt securities
110,596
4.29%
110,040Total investment portfolio
$124,598
4.28%
$124,042

Foreign currency risk

Corel conducts business in various foreign currencies, primarily in Canada and Europe
and to a lesser extent
Australia, Latin America, Japan and other Asian countries.  Corel monitors its foreign currency exposure.  As of
November 30, 2000, Corel had no foreign currency hedges outstanding.  Corel has mitigated, and expects to continue
to mitigate, a portion of its currency exposure through decentralized sales, marketing and support operations in which
all costs are local currency based.