Press Release

Novell Takes Network Server Market Share Title Again in 1996

Novell's Directory-Based Intranet Platform Wins Major Industry Awards and Drives Intranet Deployment

OREM, Utah -- February 13, 1997 -- Novell, Inc. today announced that in 1996 it again led the industry in network server market share. This support from customers was echoed in January by top trade publications Byte Magazine and InfoWorld, which gave product-of-the- year and Editor's Choice awards to Novell's directory-based server operating systems. In addition, a February Computerworld survey of network managers ranked Novell's IntranetWare™ and GroupWise™ products highest in customer satisfaction in the networking and electronic mail categories, respectively.

According to the latest statistics from International Data Corporation (IDC), shipments of NetWare and IntranetWare servers total 973,000 for 1996, giving Novell a 25% lead over the number two product, Windows NT Server. In terms of total network user connections shipped last year, customers purchased 20.5 million new network and intranet nodes from Novell--26% more than NT's 1996 shipments. However, IDC's most striking finding is the total number of people who connect to Novell networks each day: there are three times more Novell network users than NT Server users.

"While the Novell vs. Microsoft contest is still a hot topic, our customers tell us they deploy both companies' products to meet their business needs," said Denice Gibson, senior vice president, Internet Products Division for Novell. "Novell provides several solutions that enable customers to build heterogenous intranets. For example, Novell provides both networking clients and directory management products that integrate NT Servers and workstations into Novell networks and intranets without the additional administrative overhead associated with the NT platform. This NT integration strategy helped fuel the growth of our IntranetWare product line in 1996."

Among the organizations extensively deploying Novell networking software are J.P. Morgan, CBS, Merrill Lynch, Taco Bell, Pepsico, Allied Signal, Citicorp, United Parcel Service, Hallmark Cards, Motorola, Kentucky Fried Chicken, Nortel Communications, Southwest Airlines, Johns Hopkins University and thousands more around the world.

"What a lot of larger companies are doing is integrating one or two NT servers into their larger Novell networks to run dedicated applications," said Wai Seng Won, president of Sufficient Systems, Inc., a network integrator in Minneapolis, Minnesota. "But they continue to rely on Novell and Novell Directory Services™ for their enterprise-wide network infrastructure."

Novell Wins Top Awards

IntranetWare, Novell's full-service Internet/intranet platform, captured InfoWorld's 1996 Product of the Year Award in the network operating system category, while Novell's IntranetWare Client for Windows NT, a client for connecting NT Workstation to both Novell and Microsoft network servers, took the same honors for network client software. NetWare 4.11, Novell's network operating system, captured BYTE Magazine's 1997 Editors' Choice Award of Distinction given to the outstanding information technology products of 1996.

IntranetWare is also rated high among networking managers. In a Computerworld survey of 1,600 respondents from corporations and organizations randomly selected from Computerworld's buyers' database, IntranetWare was rated the best networking operating system in overall customer satisfaction. In addition, Novell was the highest ranking network vendor in software quality. And GroupWise took the top spot in the electronic mail category for overall customer satisfaction.

The Byte and InfoWorld awards underscore strong customer recognition in the marketplace for NDS and Novell's server operating system products. Novell sold nearly a million server operating systems in 1996, driven by Novell's recently released intranet/Internet server operating system, IntranetWare. IntranetWare, which first shipped in September 1996, has immediately gained strong acceptance among businesses of all sizes by continuing the evolution of NetWare 4 to provide customers with a full-service intranet and Internet solution.

About Novell

Founded in 1983, Novell (NASDAQ: NOVL) 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, as well as the network computing industry's most comprehensive education and technical support programs. Information about Novell and its complete range of products and services can be accessed on the World Wide Web at http://www.novell.com.

NetWare and Novell are registered trademarks, and IntranetWare, NDS and Novell Directory Services are trademarks of Novell, Inc. All other registered trademarks and trademarks are the property of their respective holders.

Press Contacts:
Jason Werner
Novell, Inc.
(801) 861-4009
Internet: jwerner@novell.com

Julia Mason
Cunningham Communication, Inc.
(415) 858-3747
Internet: julia@ccipr.com