SOFTQUAD SOFTWARE SUBMITS APPLICATION TO MOVE TO NASDAQ NATIONAL MARKET

[Heather Grant <heather@itpr.com>]

FOR IMMEDIATE RELEASE

SOFTQUAD SOFTWARE SUBMITS APPLICATION TO MOVE TO NASDAQ NATIONAL MARKET

TORONTO, ON – August 1, 2000 – SoftQuad Software, Ltd. (OTC BB: SXML), an
internationally recognized developer of XML-enabling technologies and
commerce solutions for e-business, today announced it has submitted an
application for inclusion of its common stock on the Nasdaq National Market.

“In seeking a Nasdaq National Market listing, SoftQuad hopes to gain access
to a broader institutional investor market and enhance financing
flexibility,” said David Adams, CFO and COO, SoftQuad Software, Ltd.  “While
SoftQuad’s application is subject to approval by the Nasdaq Stock Market, we
feel that this application signifies a proactive move forward in the
development of our business and confidence in the company’s future.”

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. A founding member of the World Wide Web Consortium (W3C), the
Organization for the Advancement of Structured Information Standards (OASIS)
and XML.org., SoftQuad is also a member of the Open Applications Group, Inc.
(OAGI) and the Wireless Application Protocol (WAP) Forum.  SoftQuad has been
instrumental in shaping and developing both the standards and technologies
that are changing the way companies exchange information and do business
over the Web.

Headquartered in Toronto, Canada, with European operations based in London,
SoftQuad was first to market with XMetaL, an advanced, yet easy-to-use XML
content creation solution. It has already become the premier enabling
technology for XML-based content applications in electronic 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.

For more information, visit SoftQuad's website 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, its ability to successfully obtain
inclusion of its common stock on the Nasdaq National Market 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.


For further information on SoftQuad, contact:

David Terry
ITPR (for SoftQuad Software)
(416) 860-3899 ext. 3607
david@itpr.com

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


Heather Grant
Account Executive
ITPR
214 King Street West, Suite 216
Toronto, ON  M5H 3S6
Tel: (416)860-3899 ext. 3609
Fax: (416)941-1090
Email: Heather@itpr.com