Highlights:
* XMetaL 2.0 is now Shipping
* Award-winning XML content creation solution
* XML content easily created for e-publishing, knowledge management and
e-commerce applications
* Endorsement quotes from USAtoday.com, Extensibility and Vignette

News Release

SoftQuad Delivers Advanced
XML Authoring Solution
Now Shipping XMetaL 2.0, upgrade to award-winning XML content creation
solution

New York, NY - DevCon - June 26, 2000 - SoftQuad Software, Ltd. (OTC BB:
SXML), the internationally-recognized developer of XML-enabling technologies
and commerce solutions for e-business, today announced they are now shipping
XMetaL 2.0, a major upgrade to XMetaL, the premier enabling technology for
XML-based content applications in e-publishing, e-commerce and knowledge
management.
"XMetaL 2.0 takes XML content creation to an even higher level, while
maintaining its easy-to-use interface, with enhanced editing features,
support for even more advanced XML constructs and new customization and
integration options," said Roberto Drassinower, president and CEO of
SoftQuad Software, Ltd. "We're at the centre of XML content, developing an
even more powerful XML content creation solution that is driving Web-based
publishing, knowledge management and e-commerce into the future."
The new version of XMetaL makes it easier to create XML content, and
provides integrators greater flexibility in deploying effective content
solutions for real world production environments.

"USAToday.com required a solution to manage the content of our online news
Web site, including workflow difficulties and multiple approval problems -
all requiring a lot of manual intervention," said Robert Shelton, manager of
software development, USAToday.com. "SoftQuad quickly responded to the
problem by recommending XMetaL, their content creation solution. XMetaL
allowed our e-publishing processes to be automated and it changed our online
publication from a static HTML environment to an active and dynamic XML
one."

Key features to this upgrade include well formed editing, a new Structure
view, support for more advanced XML constructs and expanded customization
options.

XMetaL 2.0 also includes a fully functional trial version of Extensibility's
XML Authority(tm), the leading schema design and management solution. The
integration of these two products will create a comprehensive solution for
Web enabled content interchange, manipulation and presentation for
enterprises implementing XML-based initiatives.

"XMetaL 2.0 is a first class XML content authoring solution," said Reid
Conrad, president and CEO, Extensibility, Inc. "We're happy to work with
SoftQuad to provide customers with the next generation of powerful, yet
easy-to-deploy solutions for developing and managing XML-based content and
rules for a wide variety of e-business applications."

On May 2, 2000 SoftQuad announced a partnership with Vignette to provide
e-businesses with a comprehensive platform for implementing and deploying
XML-based content solutions to e-businesses.

"The extensibility and versatility of XML is essential to the exchange of
information in any Web business," said Bill Daniel, senior vice president,
products, Vignette Corporation. "XMetaL is an excellent tool for creating
XML content because of this power, and it provides greater flexibility in
capturing and distributing e-commerce content both within an organization
and throughout a partner network."

XMetaL has been accepted as the premier enabler for XML content applications
by some of the world's leading companies, such as Daimler Chrysler, Deutsche
Bank, British Aerospace, Qantas, Boeing, Lucent Technologies, British
Telecom, Microsoft, Amazon.com, Northern Telecom, Oracle, IBM, Ericsson and
Continental Airlines.

SoftQuad also recently announced the launch of the XMetaL Quick Start
Program, which allows companies to easily prototype, pilot or deploy an
XMetaL content creation solution for XML-based e-publishing, e-commerce or
knowledge management applications. The Quick Start Program provides an
accessible XML entry point for companies of all sizes. To date, companies
such as Hewlett-Packard and BC Gas have chosen SoftQuad's XMetaL Quick Start
Program to help them prototype XML-based content solutions using XMetaL.

Pricing and Availability

XMetaL 2.0 is available now in the U.S., Canada and Europe for $495.00 (US)
per single-user license. The product is sold directly and through VARs and
OEMs. Volume discounts, site licenses, partner programs and on-site training
are all available. The XMetaL Quick Start Program is available now directly
through SoftQuad for $10,000 (US).

About XMetaL

SoftQuad XMetaL 2.0, the premier enabler for XML-based content applications,
provides the power and flexibility required to create and work with XML
content in a real-world production environment. Combining state-of-the-art
XML editing features and the ideal front-end to e-commerce, e-publishing and
knowledge management applications, XMetaL 2.0 makes it easy for an entire
organization's user-base to create content.

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 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 an advanced, yet easy-to-use, XML content
creation solution, XMetaL. It has already become the premier enabling
technology for XML-based content applications in electronic publishing,
e-commerce and knowledge management.

For more information, visit SoftQuad's Web site at http://www.softquad.com

-30-

Note to editors: If you're interested in reviewing XMetaL 2.0 or viewing
additional information about XMetaL or SoftQuad Software, Ltd., including
technical specs, downloads, screen shots and box pictures, please visit the
SoftQuad web page 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 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 Software, contact:

Sacha De Groot
ITPR (for SoftQuad Software)
(416) 860-3899 ext. 8026
sacha@itpr.com

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