CE Software, Inc. Reports Second-Quarter Results

West Des Moines, Iowa, August 23, 2006 -- CE SOFTWARE, INC. (OTC Symbol: CESF) today announced results for its second quarter ended March 31, 2006.

CE Software reports a pro forma net loss of $23,478, or $1.58 per share, for its second quarter of fiscal 2006 on pro forma operating revenues of none. For the same quarter a year ago, the company reported a pro forma net loss of $34,045, or $2.30 per share, on pro forma operating revenues of none.

"With the contingent sale of software products and other assets on April 1, 2004," said John S. Kirk, president of CE Software, Inc., "there was no revenue for the quarter ended March 31, 2006. The sale is contingent in that it is subject to approval of the shareholders. Since management anticipates that approval will be obtained, financial results are reported accordingly on a pro forma basis. Additional information and comments on our current situation are included in our press release of March 16, 2006."

For our press release of March 16, 2006, and other press releases, which include more detailed financial information, and to ask questions and read answers, 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.

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

Balance Sheets        Statements of Operations        Statement of Cash Flow

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