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Corel, Canada settle Y2K complaint

Corel says it has reached an out-of-court agreement with the government of Canada related to the Year 2000 technology problem.

Corel today said it has reached an out-of-court agreement with the government of Canada related to the Year 2000 technology problem.

Awarded to Corel, the settlement in the amount of $9.9 million in Canadian dollars, or $6.7 million in U.S. dollars, concerned a procurement for a standard desktop office suite for Revenue CanadaBack to Year 2000 Index Page that also included a Year 2000 upgrade.

A complaint was filed by the Ottawa, Canada-based software company in the summer of 1998 with the Canadian International Trade Tribunal (CITT) in which the software company had grievances with the bidding process for the contract.

"We felt it was an incomplete process," said Stuart McCarthy, vice president of public relations at Corel.

The contract didn't go through. "In the end we were rewarded for our loss of profit, which included implementation, integration, and training," said McCarthy.

In accordance with direction contained in the decision rendered by the CITT after hearing the complaints, a negotiated settlement was reached. The amount represents full and final settlement covering all claims by Corel arising from this procurement.

The agreement was jointly announced today by Alfonso Gagliano, Minister of Public Works and Government Services and Michael Cowpland, Chairman, President and Chief Executive Officer of Corel Corporation.

"I am pleased that an agreement has been reached in this claim," said Minister Gagliano in a statement.

Cowpland also expressed his satisfaction with the final settlement. "This is a reasonable settlement and we look forward to future opportunities to market our products to the Government of Canada, within Canada, and internationally."

Corel battles with Microsoft and IBM-owned Lotus Development in the desktop office suite market.