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Novell Gives Small Businesses Networking at the Right Price - Free

Novell will provide small companies free out-of-the-box networking software, complete with powerful Web access, collaboration, security and management capabilities New strategy opens opportunities for Novell channel partners to deliver leading-edge networking services to customers without the barrier of product costs Novell will work with application vendors to package Novell Small Business Suite with their offerings to drive further value to their small business customers

PROVO, Utah | April 10, 2003

Small businesses are looking for a reliable networking foundation, powerful communication tools, flexible desktop management and secure Internet access. Yet the costs of buying, installing, and maintaining a network that allows easy integration with the Web are cost-prohibitive for very small businesses. Today, Novell is removing that impediment by offering the Novell® Small Business Suite Starter Pack to small businesses at a compelling price: free. In addition, Novell is launching a program that will allow application vendors to deliver, also for free, Novell's networking solution to their small business customers. With this move, Novell gives small businesses the ability to grow more quickly into big businesses, with the reliability and security Novell's larger customers have enjoyed for years.

The small business market is one of the most dynamic sectors of the global economy, with small businesses worldwide employing significantly more individuals than large corporations and often leading the field in innovation. Yet when it comes to technology, the typical small business is at a real disadvantage. Small firms stand to gain immensely if they can tap the low-cost, high-reach distribution, marketing and information channels the Web provides. But most don't have the skills or budget to deploy or maintain networks that allow them to do so. With today's announcement, Novell changes all that. Novell will provide, free of charge, the Novell Small Business Suite Starter Pack to very small businesses and home offices. This solution is literally a network in a box, providing the full range of network services companies need: management, Web access, email and collaboration, and security.

"Novell has long been a backbone of corporate networks, but small businesses have tended to think they can't afford the power of a Novell network," said Jack Messman, chairman and CEO of Novell. "With today's announcement, affordability is no longer an issue. In addition, Novell's proven track record on reliability and security means small businesses can be confident that the system will just work. This is a great opportunity for small business to fully leverage the Web and a great way for Novell to gain additional share of this dynamic area of the market."

Most small businesses turn to local solution providers, instead of national vendors, for technology advice and troubleshooting. Novell will be tapping its extensive solution provider partner network to drive forward this initiative. Customers must obtain the starter pack through participating Novell solutions providers. To be eligible for the program, solution providers must have a current Certified Novell Salesperson™ 6.5 on staff to ensure a high level of expertise on Novell's offerings. In addition, some regions will require partner participation in Novell's PartnerNet® program. Customers benefit from a state-of-the-art reliable and secure network for just the cost of the partner services required to install the Novell Small Business Suite. Novell partners gain through being able to offer a very compelling and comprehensive networking solution to their customers at no cost for the technology.

"Novell Small Business Suite is our most popular small business package, and this initiative will only make it more so," said Terry Green, President of VTI Computers, Inc., a Novell partner. "The Novell Small Business Starter Pack program is great because it offers the industry's most solid and secure operating system without an investment up front. Novell's timing is excellent. Even with the industry in the doldrums, I can still help my customers upgrade their environment. This will at least double our server business in the low-end of the market and will grow our business for back-up hardware, switches and other products."

In addition to delivering the Novell Small Business Suite through its channel partners, Novell will also work with application vendors to redistribute the suite for free in conjunction with their small business offerings. Again, since small companies tend to work through local solution providers, this program will count primarily on the application vendors' solution provider channel partners for delivery. By teaming with application vendors, Novell can reach a broader market for the suite, while also providing more value to the customers of these vendors through inclusion of a premier networking solution with their application purchase.

For more information, customers should contact their solution provider partner or visit http://www.novell.com/nsbs_starterpack.

Partners seeking more information should visit http://www.novell.com/partners/nsbs_starterpack.

About Novell

Novell, Inc. (Nasdaq: NOVL) delivers Software for the Open Enterprise™. With more than 50,000 customers in 43 countries, Novell helps customers manage, simplify, secure and integrate their technology environments by leveraging best-of-breed, open standards-based software. With over 20 years of experience, more than 5,000 employees, 5,000 partners and support centers around the world, Novell helps customers gain control over their IT operating environment while reducing cost. More information about Novell can be found at http://www.novell.com.

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