Press Release

Novell, Hewlett-Packard Team to Deliver Complete Networking Solutions

Agreement to Distribute Novell Software Products on HP Hardware is Newest Component of Expanding Relationship Between Network Computing Leaders

OREM, Utah -- July 22, 1996 -- Novell, Inc. and Hewlett-Packard Company (HP) today announced an expansion of their strategic alliance designed to deliver complete networking solutions to customers in small to medium-sized businesses, enterprise, and Internet/intranet services markets. The most recent agreement entitles HP on its NetServer family of PC servers to ship any or all of Novell's products, including NetWare 4 network operating systems and NetWare 4.1 symmetric multiprocessing (SMP.) The combined Novell products, along with HP's scalable and highly available server hardware, provide customers with the world-class solutions they need to access and manage the broadest range of network-based applications and information.

"We are taking another step forward with HP, one of the leading and most respected systems vendors in the information technology industry," said Robert J. Frankenberg, Chairman and CEO of Novell, Inc. "Together, our two companies are making giant strides to deliver the network solutions that customers are demanding -- access to all applications no matter where they reside, a universal set of network services that can be distributed across all platforms, and world-class availability, reliability, scalability, and service. Through this agreement and other recent ones, we are giving our mutual customers the solutions they need to evolve their business networks into intranets and portals to the global Internet."

"Many of our NetWare customers' needs are maturing beyond file and print to an environment where they need to connect to more people and have access to more information," said Duane Zitzner, general manager for HP's Personal Information Products Group. "We are committed to providing our customers with the products and services they need to take full advantage of this networked corporate environment."

Serving Customers with Complete, Integrated Solutions

Novell expects both end-user customers and channel partners to benefit from the availability of a broad range of Novell software products in solutions tightly integrated with HP hardware. Novell products such as GroupWise messaging and the NetWare Web Server leverage Novell Directory Services (NDS) and other core services of the NetWare operating system to simplify network administration and management and reduce the cost of network ownership.

In addition, integrated Novell and HP solutions will speed and simplify the installation and setup process for solutions providers and their customers. The expanded OEM agreement between the two companies allows HP to distribute Novell products in a range of formats, including pre-installing the software at the factory or installing Novell products on a CD-ROM delivered with the NetServer. Other possibilities include direct online distribution of Novell software products from HP to customers.

Novell and HP -- Working Together on Several Fronts

Solutions based on HP NetServer products are just one component of a multi-faceted technology and marketing partnership between HP and Novell. The two companies have also expanded their relationship in recent months in the areas of network services for high-performance enterprise servers running the HP/UX operating system and global technical support. Novell is also partnering with HP in the I2O Special Interest Group formed to respond to the growing demand for fast-response, high-performance PC servers and increased input/output technology.

The two companies are moving forward with an agreement first announced in September, 1995 to make Novell Directory Services (NDS) and other Novell services available in the next release of HP/UX and on a compatible 64-bit UNIX System for Intel Corporation's P7 or "Merced" architecture that HP is co-developing with The Santa Cruz Operation, Inc. (SCO). Novell network services on these UNIX platforms will protect customer investments and support flexibility and freedom of choice by providing a common framework for network access, administration, and management across heterogeneous networks.

On June 12, Novell announced that HP would be one of the first two vendors to participate in its Global Service Partner program, which expands Novell's technical support coverage for multi-vendor networking systems worldwide to its customers. HP will have the highest priority direct access to Novell's worldwide technical support organization in order to augment the delivery of Novell's technical knowledge, product support and training information worldwide to its extensive channel of partners.

HP also announced earlier that it will be an original equipment manufacturer (OEM) for NetWare 4.1 SMP. Starting August 1, NetWare 4.1 SMP is available both for multiprocessor HP NetServers running NetWare 4.1 and for customers expanding an existing HP NetServer running NetWare 4.1 from a uniprocessor to a multiprocessor system.

Novell (NASDAQ: NOVL) is the world's leading network 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.

Hewlett-Packard offers a broad range of services to design, integrate, finance, implement, operate, manage and maintain computing environments consisting of multi-vendor hardware, software and networks. In 1995, Hewlett-Packard generated $4.3 billion in service revenue through the support of products from more than 450 hardware and software vendors. Hewlett-Packard service and support programs are delivered by 17,500 professionals worldwide. Hewlett-Packard Company is a leading global manufacturer of computing, communications and measurement products and services recognized for excellence in quality and support. HP has 108,300 employees and had revenue of $31.5 billion in its 1995 fiscal year.

Novell and NetWare are registered trademarks of Novell, Inc.

Editors' Note: Please see "HP and Novell To Provide Complete Networking Solutions," issued by HP on July 22, 1996.

Press Contacts:
Hani Durzy
Alexander Communications
Phone: (415) 923-1660
Fax: (415) 923-9863
Internet: hdurzy@alexander-pr.com

Jonathan Cohen
Novell, Inc.
Phone: (408) 577-7268
Fax: (408) 577-5104
Internet: jcohen@novell.com