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Novell Wins Latest Battle in Ongoing Dispute With Salt Lake Computer Firm OREM, Utah -- January 13, 1997 -- Novell, Inc. announced that it has won a decisive victory in its effort to stop software piracy when the U.S. Bankruptcy Court appointed a trustee to oversee the business affairs of Hammond Computer doing business under the name of Network Centre in Salt Lake City, Utah. It is Novell's position that the prior management of Network Centre was involved in abusing Novell's upgrade policies. Novell also asserts that Network Centre breached its contract with Novell by failing to pay royalties and other obligations in excess of $8.7 million for the sale of Novell products. Novell initially filed a complaint in the Fourth District Court for the State of Utah in order to recover Novell products worth an estimated value in excess of $5 million. The Court granted Novell's request and further ordered Network Centre to discontinue selling Novell serialized products. Network Centre then declared bankruptcy and the case was moved to U.S. Bankruptcy Court. Jim Lundberg, Novell Senior Corporate Counsel, stated, "The main message of this victory is that Novell will enforce the terms of its contracts and will not be dissuaded by threats. In this particular case the former management of Network Centre tried to avoid paying the royalties it owed to Novell and used the threat of countersuing Novell in an effort to avoid those contract obligations." Novell, Inc. (NASDAQ: Novell), is the world's leading provider of network software. The company offers a wide range of network solutions for distributed network, Internet, intranet and small-business markets. Novell education and technical support programs are the most comprehensive in the network computing industry. Information about Novell's complete range of products and services can be accessed on the World Wide Web at http://www.novell.com. Novell is a trademark of Novell, Inc. in the U.S. and other countries.
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