June 2004 Results

CE SOFTWARE, INC. Statements of Operations For the nine months ended June 30, 2004 and 2003 (Unaudited)
	Three Months Ended June 30		Nine Months Ended June 30
	2004	2003	2004	2003
Net revenues	$ -	$ 282,644	$ 454,008	$ 921,835
Cost of revenues	-	33,047	42,198	121,258
Gross profit	-	249,597	411,810	800,577

Sales and marketing (note 1)	15,292	62,188	119,166	287,466
General and administrative (note 1)	86,118	139,896	324,617	437,536
Research and development (note 1)	9,819	131,782	158,825	405,768
Operating expense	111,229	333,866	602,608	1,130,770
Operating loss	(111,229)	(84,269)	(190,798)	(330,193)

Other income (expense):
Miscellaneous income	775	2,844	11,180	8,632
Gain on sale of products and equipment (note 2)	93,105	-	187,041	-
Loss on sale of investments	(87)	-	(87)	-
Interest income	712	78	1,767	93
Interest expense	(30)	(10,253)	(194)	(31,190)
Total other income (expense)	94,475	(7,331)	199,707	(22,465)
	_________	_________	_________	________
Gain (loss) before income taxes	$ (16,754)	$ (91,600)	$ 8,909	$ (352,658)
Income taxes (note 3)	224	-	224	-
Net gain (loss)	$ (16,978) ========	$ (91,600) ========	$ 8,685 =========	$ (352,658) ========

Basic net gain (loss) per share	$ (1.17)	(6.32)	.60	(24.29)
Shares used in per share calculation - basic	14,487	14,483	14,484	14,520
Diluted net gain (loss) per share	(1.17)	(6.32)	.58	(24.29)
Shares used in per share calculation - diluted	14,487	14,483	14,963	14,520
(Per share data restated for reverse 1 for 100 stock split effective February 28, 2003.)
Note 1: Expense for the quarter ended June 30, 2004 includes separation pay expense.
Note 2: Sale of QuickMail software product in December 2003 and remaining software products and equipment in April 2004.
Note 3: The income tax expense was a franchise tax not based on taxable income.