OASIS MEMBER NEWS: SOFTQUAD SOFTWARE, LTD. REPORTS SECOND QUARTER RESULTS

["Laura Walker" <laura.walker@oasis-open.org>]

-----Original Message-----
From: Heather Grant [mailto:heather@itpr.com]
Sent: Tuesday, May 23, 2000 12:38 PM



News Release

SOFTQUAD SOFTWARE, LTD.
REPORTS SECOND QUARTER RESULTS



TORONTO, ON – May 23, 2000. SoftQuad Software, Ltd. (OTC BB: SXML), an
internationally-recognized developer of XML enabling technologies and
commerce solutions for e-business, today reported its results for both the
second quarter and six month periods ended March 31, 2000.

Revenues for the three months ended March 31, 2000 were $1,115,000, an
increase of 114% as compared to revenues of $521,000 for the same period a
year ago.  Net loss for the quarter was ($882,000), or ($0.07) per share,
compared to a net loss of ($642,000), or ($0.17) per share, recorded for the
corresponding prior year period. For the six months ended March 31, 2000,
revenues were $1,975,000, an increase of 16% as compared to revenues of
$1,704,000 for the same period a year ago.  Net loss for the six months was
($1,507,000), or ($0.14) per share, compared to a net loss of ($628,000), or
($0.20) per share, for the corresponding six months in the prior year.

Commenting on the results, Roberto Drassinower, president and CEO of
SoftQuad Software, remarked: "We are excited to report our financial results
for the first time as a public company.  The growing awareness and
acceptance of XMetaL, our award-winning XML content creation solution,
contributed to a significant increase in our revenues over last year's
corresponding periods."

"Going forward, we plan to continue to invest in developing the sales and
support operations necessary to support XMetaL and the planned rollout of
MarketAgility, our supply-side content solution which allows companies to
join and compete in the rapidly emerging B2B e-markets. With $21.0 million
in cash on-hand, and strategic relationships with Vignette Corp. (NASDAQ:
VIGN) and Germany's Software AG, SoftQuad is well positioned to participate
in the rapidly growing B2B Internet
infrastructure solutions market."



About SoftQuad Software, Ltd.

SoftQuad Software, Ltd. (OTC BB: SXML) is an internationally-recognized
developer of XML enabling technologies and commerce solutions for
e-business.  SoftQuad's XMetaL, the world's first advanced, yet easy-to-use,
XML content creation solution, is the premier enabling technology for
XML-based content applications in e-publishing, e-commerce and knowledge
management. SoftQuad is targeting the growing business-to-business (B2B)
marketplace with MarketAgility, a supply-side content solution that
allows companies to effectively join and compete in B2B e-markets.

Headquartered in Toronto, Canada, and with European operations based in
London, England, SoftQuad is a founding member of, and active participant
in, the World Wide Web Consortium (W3C), the Organization for the
Advancement of Structured Information Standards (OASIS) and XML.org.

For more information, visit SoftQuad's Web site at http://www.softquad.com

Caution Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of
1995. Words such as "anticipates", "estimates", "expects", "will", "should",
"projects", "intends", "plans", "believes" and words
and terms of similar substance used in connection with any discussion of
future operating or financial performance identify such
forward-looking statements.  Those forward-looking statements are
management's present expectations of future events.  As with
any projection or forecast, they are inherently susceptible to uncertainty
and changes in circumstances.  SoftQuad is an early-
stage growth company that operates in a highly competitive and rapidly
changing environment, and its business results are
dependent on numerous factors, including demand for its products and
services, its ability to manage costs and generate
revenues, technological developments, protection of its intellectual
property rights, its ability to attract and retain key personnel,
the resolution of issues concerning commercial activities via the Internet,
including security, reliability, cost, ease of use and
access, government regulation, risks related to international sales and
potential foreign currency exchange fluctuations,
economic, political and social conditions in the countries in which it
operates and other risks detailed from time to time in
periodic reports filed by SoftQuad with the U.S. Securities and Exchange
Commission and other regulatory authorities.
SoftQuad's actual results could differ materially from management's
expectations because of such factors.

(financial data to follow)

For further information on SoftQuad Software, contact:

Roberto Drassinower
President and CEO
SoftQuad Software, Ltd.
(416) 544-9000

David Adams
CFO and COO
SoftQuad Software, Ltd.
(416) 544-9000










SOFTQUAD SOFTWARE, LTD.
CONDENSED CONSOLIDATED
BALANCE SHEETS
(dollars in thousands, U.S.)








SOFTQUAD SOFTWARE, LTD.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(dollars in thousands U.S., except per share information)
(unaudited)



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