West Des Moines, Iowa, September 15, 2005 -- CE SOFTWARE, INC. (OTC Symbol: CESF) today announced results for its third quarter ended June 30, 2004.

CE Software reports a net loss of $17,000, or $1.17 per share, for its third quarter of fiscal 2004 on no revenues. For the same quarter in 2003, the company reported a net loss of $92,000, or $6.32 per share, on operating revenues of $283,000.

"With the contingent sale of our remaining software products, inventory and fixed assets on April 1, 2004," said John S. Kirk, president of CE Software, Inc., "there was no revenue for the quarter ended June 30, 2004. 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."

"Since April 1, 2004, the Company has been operating with minimal staff. We do not expect any future operating revenue if the contingent sale is approved by shareholders. General and administrative expenses are continuing."

John S. Kirk continued, "We are continuing to work on the proposed liquidation that was discussed in our press release of April 13, 2004, however, members of the Company's Board of Directors are also considering the possibility of selling their shares in the Company to another entity that may wish to purchase a controlling interest. Any such sale, if it were to occur, would be preceded by a distribution of substantially all of the cash in the Company to its shareholders. We anticipate that any such entity would continue the Company with a new business plan, which plan could include seeking out and completing a merger with an operating company."

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 2005 CE Software, Inc. All rights reserved. QuicKeys, QuickConference, and InOutTracker are U.S. registered trademarks of CE Software, Inc. 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.