This partnership combines Interleaf's leading authoring, conversion and formatting tools with MicroStar's best-of-breed SGML/XML modeling software and consulting services. This combination will provide customers with the foremost solution for complex publishing that delivers the power of SGML, XML, and HTML technology. The partnership also forms a foundation on which the two companies intend to jointly build future products to address the evolving trend toward XML as a standard Internet document and transaction structure and content modeling language.

"By enabling each company to concentrate on core competencies, this partnership will provide users with support for today's advances in SGML technology and address future XML requirements," stated Jaime Ellertson, Interleaf's President and CEO. "It also builds on our previously-announced partnership with SoftQuad Inc. to deliver an Internet SGML Publishing Suite by integrating the Interleaf Xtreme intranet repository with SoftQuad's Panorama Viewer. Teaming with Microstar and SoftQuad will enable Interleaf to provide a comprehensive SGML/XML solution to our customers."

"Our partnership with Interleaf is a key element of Microstar's commitment to provide advanced technology and solutions to an expanding worldwide SGML customer base. It also demonstrates our determination to quickly leverage Microstar's SGML knowledge base into the rapidly expanding XML product and service market," stated Peter Jordan, Microstar's President and CEO.

About the SGML Products
The product suite that will be jointly marketed by the two companies includes:

• Interleaf 6 - a full-featured application for creating, assembling, and distributing long, complex documents in a workgroup environment;
• Microstar's Near & Far Designer - the most powerful Document Type Definition (DTD) authoring tool for creating XML/SGML models;
• FastTAG - a conversion and tagging utility that converts formatted ASCII and word processing files into structured documents in popular formats including Microsoft Word, Interleaf and SGML and XML;
• SGML Hammer - a utility that converts SGML documents into popular authoring and distribution formats including Microsoft Word, Interleaf, SGML with different Document Type Definitions (DTDs), and HTML; and
• SureStyle - a tool that provides authors with a way to automatically verify and apply styles in Microsoft Word documents for conversion to SGML.

About Interleaf, Inc.
Interleaf, Inc. provides software solutions for publishing complex, active documents across the extended enterprise. Its advanced, open software products integrate electronic publishing, document management, distribution and Web technologies, making it easy for customers to assemble, manage, retrieve, distribute and publish business-critical information across the enterprise and beyond. Interleaf is headquartered in Waltham, Mass., with offices around the world. Information about Interleaf's products is available from Interleaf Direct at 1.800.955.5323 or on the Interleaf Product Pages.

About Microstar

Microstar Software Ltd. provides solutions, comprised of services and technology, that enable Global 2000 companies to create, manage, and distribute their corporate knowledge assets. The company is recognized for its innovative standards-based solutions and technology tools for document and transaction management. Microstar has extensive expertise in SGML/XML, and is listed on the Toronto Stock Exchange (MSS). Information about Microstar Software Ltd. is available on the World Wide Web at www.microstar.com.