West Des Moines, Iowa, August 24, 2006 -- CE SOFTWARE, INC. (OTC Symbol: CESF) today announced results for its third quarter ended June 30, 2006.

CE Software reports a pro forma net loss of $27,000, or $1.81 per share, for its third quarter of fiscal 2006 on pro forma operating revenues of none. For the same quarter in 2005, the company reported a pro forma net loss of $39,000, or $2.64 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 June 30, 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 recent press release of March 16, 2006."

For our press release of March 16, 2006, and prior 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.

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