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SoftQuad Introduces HoTMetaL Application Server, Powerful Web Application Development and Deployment Tool For Web Developers, ISPs

New Tool Makes Application Development As Easy As Using Industry-Standard HTML Tags; Features XML-Compliant Syntax, Promotes Commerce Applications

LOS ANGELES (March 11, 1998) -- SoftQuad, Inc. (NASDAQ: SWEBF; TSE: SKI), a leading provider of publishing tools for the Internet and corporate intranets, today introduced HoTMetaL Application Server, a flexible new Web application development and deployment tool that empowers Web developers and Internet Service Providers (ISPs) to create Web applications quickly and easily.

HoTMetaL Application Server provides a robust and secure development environment that utilizes an XML based scripting language and HTML-like syntax and therefore offers Web developers a familiar interface. HoTMetaL Application Server allows developers to easily view and edit code without exiting the HTML authoring environment, resulting in immediate productivity gains.

HoTMetaL Application Server also boasts a compact memory footprint. The product is highly efficient and scalable in a virtual hosting environment and has no negative impact on an ISP's cost-per-domain model. ISPs can use HoTMetaL Application Server to add value and retain long-term customers with applications such as commerce, on-line catalogs, category-based searches, data validation forms, message forums and more.

HoTMetaL Application Server's open system architecture fully supports common industry standards and delivers applications that are 100% browser independant. HoTMetaL Application Server runs on multiple platforms, giving ISPs and corporate Webmasters the flexibility to select the operating environment best suited to each application. Platforms supported include Solaris, SGI-IRIX, Linus, Unix, and FreeBSD. A Windows 95/NT version will be available early in the second quarter of 1998.

"This is enabling technology for the next generation of distributed Web applications, based on XML as the standard for data interchange," said Roberto Drassinower, General Manager, SoftQuad. "And with robust security and commerce features, HoTMetaL Application Server has the power to handle the most sophisticated Web applications. Users who are familiar with HTML will experience immediate productivity gains."

The HoTMetaL Application Server offers users impressive flexibililty, and comes complete with numerous templates, samples, and ready-to-use applications such as discussion forums and online surveys. Each pre-built application is fully customizable and includes the full source code. Developers can implement applications that integrate HTML, electronic mail, database and Internet protocols in just a few hours. SoftQuad plans to release additional application modules in the third quarter of 1998.

HoTMetaL Application Server includes a ready-to-use commerce application. Web developers can make use of commerce services such as payment processing, electronic software delivery and credit card fraud screening. HoTMetaL Application Server comes with built-in support for SCMP Commerce API from CyberSource.

HoTMetaL Application Server's powerful integrated database uses the industry standard xbase file format and allows files to be moved across different platforms without any conversion procedures. It also supports ODBC, providing access to legacy data and corporate applications.

HoTMetaL Application Server incorporates technology from HTMLScript Corporation, and is 100% compatible with the Miva engine and Miva scripts.

While the product can be used with any HTML authoring tool, it is ideally suited for use with HoTMetaL PRO 4.0. HoTMetaL PRO's rules checking feature reduces errors and dramatically cuts down on authoring time.

HoTMetaL Application Server is available immediately for $495 per server with volume discounts.

About SoftQuad Inc.

SoftQuad is a leading provider of multi-platform, standards-based Knowledge Publishing applications that enhance work in structured document publishing and structured databases. SoftQuad’s Alpha division develops, markets and supports a diverse array of quality software titles for consumers and business, as well as WebFiler, a quick and secure way for businesses to set up databases on the Web. Based in Toronto, Canada, SoftQuad is a founding member and active participant in the World Wide Web Consortium, the Internet Engineering Task Force and Editorial Review Boards.

SoftQuad HoTMetaL PRO and SoftQuad HoTMetaL are trademarks of SoftQuad International, Inc. All other trademarks are the property of their respective owners.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risk and uncertainties, including without limitation risks of intellectual property rights and litigation, risks in technology development and commercialization, risks in product development and market acceptance of and demand for the Company's products, risks of downturns in economic conditions generally, and in the software application development tools and business intelligence tools markets specifically, risks associated with competition and competitive pricing pressures, risks associated with foreign sales and high customer concentration and other risks detailed in the Company's filings with the Securities and Exchange Commission.