Absolute Software Announces Completion of Stock Option Cancellation Program

http://www.tradingmarkets.com/.site/news/Stock%20News/2088865/

Wed. December 17, 2008; Posted: 10:30 AM

VANCOUVER, Dec. 17, 2008 (Canada NewsWire via COMTEX) --
ALSWF | Quote | Chart | News | PowerRating
-- Absolute(R) Software Corporation ("Absolute") (TSX:ABT), the leading
provider of firmware-based, patented, computer theft recovery, data
protection and IT asset management solutions
announces that it has completed a voluntary stock option cancellation
program offered to all holders of stock options with an exercise price
of $8.00 per share and above. The options were surrendered and
cancelled on December 16, 2008.

Under the terms of the program, options to acquire an
aggregate of 2.8 million common shares were voluntarily surrendered for
cancellation by the holders. A non-cash stock based compensation charge
of approximately $11.9 million will be recorded in the quarter ending
December 31, 2008, representing the remaining unamortized stock-based
compensation cost for these options as of December 16, 2008. As a
result, the current charge related to these options of approximately
$1.0 million per quarter will be eliminated beginning in the quarter
ending March 31, 2009.

Following this cancellation, outstanding options were reduced
from 5.7 million to 2.9 million, representing a reduction in potential
dilution from 12% to 6%. The remaining options have strike prices
ranging from $0.20 to $19.24. The employees who cancelled their options
have not had option grants in the last three months. It is expected
that Absolute will make its customary annual option grants later in
2009.

"We believe the cancellation program is a prudent course of
action given the recent dislocation in capital markets," said Rob
Chase, CFO at Absolute. "It provides management with the flexibility to
issue stock options to new and existing staff in the future, without
creating further dilution to our shareholders. This flexibility is
critical for us as options are an important element for attracting and
retaining valued employees, and for aligning their interests with those
of our shareholders."

About Absolute Software

Absolute Software Corporation (TSX: ABT | Quote | Chart | News | PowerRating)
is the leader in computer theft recovery, data protection and Secure
Asset Tracking(R) solutions. Absolute Software provides organizations
and consumers with solutions in the areas of regulatory compliance,
data protection and theft recovery. The company's Computrace(R)
software is embedded in the firmware of computers by global leaders,
including Dell, Fujitsu, General Dynamics Itronix, HP, Lenovo, Motion,
Panasonic and Toshiba,
and the Company has reselling partnerships with these OEMs and others,
including Apple. For more information about Absolute Software and
Computrace, visit www.absolute.com.

Forward-Looking Statements

This press release contains forward-looking statements that
involve risks and uncertainties. These forward-looking statements
relate to, among other things, the expected performance of Absolute's
services and products, the availability of certain services and
products, and other expectations, intentions and plans contained in
this press release that are not historical fact. When used in this
press release, the words "plan," "expect," "believe," and similar
expressions generally identify forward-looking statements. These
statements reflect our current expectations. They are subject to a
number of risks and uncertainties, including, but not limited to,
changes in technology and general market conditions. In light of the
many risks and uncertainties you should understand that we cannot
assure you that the forward-looking statements contained in this press
release will be realized.

(C) 2008 Absolute Software Corporation. All rights reserved.
Computrace and Absolute are registered trademarks of Absolute Software
Corporation. Computrace U.S. patents No. 5,715,174, No. 5,764,892, No.
5,802,280, No. 5,896,497, No. 6,244,758, No. 6,269,392, No. 6,300,863,
and No. 6,507,914. Canadian patents No. 2,284,806 and No. 2,205,370.
U.K. patents No. EP793823 and No. GB2338101. German patent No. 695 125
34.6-08. Australian patent No. 699045. Japanese patent No. JP4067035.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained in this news release.

%SEDAR: 00013849E

SOURCE: Absolute Software Corporation

John Livingston, Chief Executive Officer (jliving@absolute.com) or Phone: (604)
730-9851; Rob Chase, Chief Financial Officer (rchase@absolute.com) or Phone: (604)
730-9851; Dave Mason, Investor Relations (dmason@equicomgroup.com) or Phone: (416)
815-0700 x237