Press Release

Novell Unifies Product Organization to Reflect Network Focus

Consolidating Three Product Groups Into Single Unit

OREM, Utah -- January 11, 1996 -- Novell, Inc. today announced that it is reorganizing its product organization in concert with its recent decisions to exit the UNIX application server and personal productivity applications businesses and focus exclusively on its market-leading network software products. The new Novell Products Group will consolidate the Systems, Applications, and Information Access and Management Groups into a single organization that will better coordinate product development and marketing to deliver more value to Novell customers.

Steven Markman, formerly executive vice president, Information Access and Management Group, heads the new product organization as executive vice president, Novell Products. Reporting to Markman are Richard King, currently executive vice president and general manager of the Systems Group; Jeffrey Waxman, currently executive vice president and general manager of the Applications Group; and other executives to be appointed later this month.

The unified organization will allow Novell to enhance interoperability among its broad range of network software products, which span from today's private business networks to the Internet. Novell believes rapid change in networks is leading to a managed Internet, or Smart Global Network, that will interconnect today's private business networks and Internet solutions as a single information resource for business and consumers.

"The business choices we've made over the last year have reestablished Novell's single focus to support our customer's network solutions." said Robert J. Frankenberg, Novell Chairman and CEO. "Now is the time to mirror this focus with a unified product organization that will fully empower cross-functional programs and product teams, speed issue resolution, improve decision making, and leverage Novell's strengths."

Novell will begin the reorganization in parallel with its sale of the personal productivity Business Applications Division, which it expects to announce by the end of January. Novell completed the sale of its UnixWare application server business to The Santa Cruz Operation, Inc. in December 1995.

Novell, Inc. (NASDAQ: NOVL), is the world's leading networking software provider. Novell software provides the infrastructure for a networked world, enabling our customers to connect with other people and the information they need, anytime and anyplace. Novell partners with other technology and market leaders to help customers make networks a part of their everyday lives.

Press Contact:
Novell, Inc.
Bob Ingols
(408) 577-8381