Interleaf Acquires Technology and XML/SGML Expertise From SoftQuad

Acquisition Supports Interleaf's XML-Based Enterprise Content Management Strategy

WALTHAM, MA. September 25, 1998.

Further accelerating its XML-based enterprise content management strategy, Interleaf, Inc. announced today the acquisition of the Panorama product line and an engineering group with extensive XML/SGML expertise from SoftQuad Inc., a Toronto-based provider of content publishing tools for the Internet and corporate intranets.

Interleaf has purchased the Panorama product line, a leading-edge collection of SGML publishing and viewing products, to expand its content management and complex publishing offerings. The Panorama product line includes Panorama Publisher, Panorama Viewer, Panorama CDWeb Publisher and Author/Editor. Interleaf has also hired several XML/SGML engineers, who are expected to contribute to the development of BladeRunner, Interleaf's enterprise content management solution which is slated for general availability in December 1998.

``With the addition of the Panorama product line and XML/SGML engineers, Interleaf's cumulative XML/SGML knowledge has reached a new level in the content management industry,'' stated Jaime Ellertson, Interleaf's President and CEO. ``Interleaf is excited to have these SoftQuad engineers join our team. Their knowledge and talent will be invaluable as we continue the aggressive implementation of our XML-based enterprise content management strategy.''

Panorama Product Line Availability

Effective immediately, the Panorama product line - including the Panorama Publisher, Panorama Viewer, Panorama CDWeb Publisher and Author/Editor 3.5 - are being supported through Interleaf technical support at 1-800-688-5151 and sold through Interleaf telesales at 1-800-955-5323.

About BladeRunner

Interleaf's BladeRunner is the first complete enterprise content management solution that harnesses the power of industry standards such as eXtensible Markup Language (XML) and Microsoft Word to deliver the reusability and personalization benefits of structured information in content-critical business solutions. BladeRunner is a business-to-business system designed to enable organizations to improve the flow of information and facilitate business transactions throughout the distribution value chain that connects corporations with their customers, suppliers and distributors.

About the Panorama Product Line

The Panorama product line provides users with tools for creating, viewing and generating SGML material.

About Interleaf

Interleaf, Inc. provides enterprise-wide software solutions for content management and complex publishing. These solutions enable customers to deploy document-based applications that improve their operating efficiency and customer satisfaction, and drive revenue and profitability. Interleaf's software products integrate electronic publishing, content management, 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 World Wide Web at

Interleaf(R), BladeRunner, Panorama(R), Panorama Publisher, Panorama Viewer, Panorama CD Web Publisher and Author/Editor are either registered trademarks or trademarks of Interleaf, Inc. Microsoft, Windows, Windows NT and Word are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

The press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Interleaf's actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause such a difference include, among other things, difficulties experienced by Interleaf in integrating former SoftQuad employees into Interleaf's operations and retaining those employees, marketing the Panorama products into Interleaf's traditional customer base, retaining significant SoftQuad customers at historic purchasing levels, and those factors discussed in the section entitled ``Risk Factors'' on pages 13-15 of the Company's Annual Report on Form 10-K dated June 29, 1998.


Interleaf, Inc.
Steve Zamierowski
Tel: +1 (781) 768-1315

Sterling Hager, Inc.
Shelly Lindgren-Outwater
Tel: +1 (617) 926-6665