Novell Signs Long-Term Partnership with BMG

Media Giant to Provide Novell with Development, Distribution, Marketing and Sales

ATLANTA -- April 24, 1995 -- Novell, Inc. today announced it has signed a letter of intent to form a long-term agreement with BMG Interactive Entertainment, a division of Bertelsmann, to be a full-service remarketer for its recently announced PerfectHome consumer software line. BMG and Novell will join forces to develop, localize, manufacture, distribute, market, and sell consumer software throughout Europe, Asia Pacific and Latin America.

Novell has actively looked for a proven, world-class partner to represent and expand its critical international entrance into the consumer market. Both companies have been working together during the past year on a joint development venture through Bertelsmann's T-1 New Media division. That venture will come to fruition next month when Novell ships the interactive role-playing adventure entitled, Hard Evidence: The Marilyn Monroe Files.

"BMG and parent company Bertelsmann have proven they are clear market leaders in consumer products and have an established track record with unprecedented success in the record, book, software and television areas. Our best-of-class consumer software line coupled with BMG's expertise allows us to make our products more widely available throughout Europe, Asia and Latin America," said Jeff Mallett, vice president and general manager, Novell Consumer Division.

Bertelsmann AG was founded more than 150 years ago and is the world's second largest media company with revenues in excess of $11 billion. Their holdings include such well-known labels as RCA Records, Arista, Bantam/Doubleday/Dell, and the BMG Book and Record Club. They have offices in more than 39 countries outside the U.S. and have established expertise in local product management, manufacturing and distribution, a dedicated and experienced sales force, local technical customer support, and local market programs.

"We have met with the majority of leaders in the consumer software market, and after extensive review, we believe that the current PerfectHome line and the future vision from Novell makes them the best choice to be our major software partner," said Gary Dale, senior vice president, BMG International. "Our expertise in everything from efficient manufacturing to breakthrough marketing techniques, coupled with the PerfectHome line, puts us in a very strong competitive position in the consumer software market."

The PerfectHome consumer line provides software for nearly every age group and room in the home with applications for personal productivity, family entertainment and home education. Popular applications include PerfectWorks, the perfect integrated software solution for the home and small office that includes a word processor, spreadsheet, database, paint, draw and communications module. Popular interactive education and entertainment titles include Read with Me, Write with Me, Memphis Math: Treasure of the Tombs, Paper Planes, and Hard Evidence: The Marilyn Monroe Files.