Subsequent to the commencement of printing of the proxy statement for the Annual Meeting of Shareholders of Novell, Inc., we were made aware of the existence of a greater than 5% shareholder. The beneficial ownership of this entity is set forth in the table below.

This table shows how much Company Common Stock is beneficially owned by owners of more than 5% of the outstanding shares as of January 31, 2000.

1. Based upon the Schedule 13G filed February 14, 2000 by Taunus Corporation with the Securities and Exchange Commission. Taunus Corporation has sole voting power with respect to 10,220,281 shares and sole investment power with respect to all shares. Taunus Corporation is a parent holding company. The shares are held of record by its indirect wholly owned subsidiaries, Bankers Trust Company, DB Alex.Brown LLC, Deutsche Bank Securities Inc. and EA Strategies. In addition, Alex.Brown Investment Management, a limited partnership 50% owned by the Taunus Corporation, holds Common Stock of Novell, Inc.

This Supplement to Proxy Statement is being mailed, together with the Novell, Inc. Proxy Statement dated February 24, 2000 and the Novell, Inc. 1999 Annual Report to Shareholders, on or about February 24, 2000 to shareholders entitled to vote at the meeting

BY ORDER OF THE BOARD OF DIRECTORS

OF NOVELL, INC.

David R. Bradford

Senior Vice President, General Counsel and Corporate Secretary

February 24, 2000