West Des Moines, Iowa, July 21, 2004 -- CE SOFTWARE, INC. (OTC Symbol: CESF) today announced results for its first quarter ended December 31, 2003.

CE Software reports a net profit of $99,000, or $6.86 per share, for its first quarter of fiscal 2004 on revenues of $259,000. For the same quarter a year ago, the company reported a net loss of $118,000, or $8.11 per share, on operating revenues of $345,000.

"Our net profit for the quarter was primarily the result of the sale of one of our software products," said John S. Kirk, president of CE Software, Inc. "On December 31, 2003 we sold our QuickMail software product to Outspring Software. We announced this sale on January 2, 2004."

John S. Kirk continued, "We are continuing to work on the proposed liquidation that was discussed in our press release of April 13, 2004. The company's operations were sold on April 1, 2004 to Startly Technologies, LLC, subject to shareholder approval. For prior press releases, more information, and to ask questions, set your Web browser to http://www3.cesoft.com/home/pressrelease-all.html or write to CE Software, Inc., Shareholder Relations, P.O. Box 65580, W. Des Moines, IA 50265, and ask to be put on the 'shareholder news' mailing list. We have also set up a Web page for shareholder questions and our responses [here]."

This release contains forward-looking information that is subject to certain risks, trends and uncertainties and actual developments may differ materially from those projected.

© Copyright 2004 CE Software, Inc. All rights reserved. QuicKeys and QuickConference are U.S. registered trademarks of CE Software, Inc. InOut Tracker, TransLucy, CE Software, CE and the CE Software logo are trademarks of CE Software, Inc. or its assigns. All other brand or product names are trademarks of their respective owners.