Press Release

New Marketing Initiative from Novell and Partners Helps Resellers Deliver Complete Business Solutions

"Solution City" Enables Resellers to Move from Selling Individual Products to Selling Network Solutions

OREM, Utah -- March 10, 1997 -- Novell, Inc. and eighteen of its partners today announced Solution City, a worldwide, multi-vendor initiative that provides information to help resellers integrate Novell Yes™-certified hardware and software products into complete network business solutions. The Solution City initiative includes: a World Wide Web site that lists recommended application solution sets; aggressive co-marketing efforts by Novell and its vendor partners; and generation and distribution of customer leads.

Each product in Solution City is readily available through established distribution channels, allowing resellers to maintain flexibility in product pricing and sourcing. The products, which are sold individually, have been tested together as a single solution.

"Solution City is exactly what resellers have been waiting for," said Jim Brown, a Novell platinum reseller in Vancouver, Canada. "As a company, we are moving into solution selling. By providing us with all the information necessary to design and configure multi-vendor solutions sets that meet the business and technology needs of our customers, Novell saves us the time we currently spend in the development and testing process."

The Solution City Web site features information on a series of solutions, which currently include accounting, project management, and telephony. Solutions are based on either IntranetWare or IntranetWare for Small Business and contain other key Novell technologies, such as GroupWise 5, ManageWise and Novell Directory Services (NDS), along with third party hardware and software. Novell partners include: 3Com, Callware, Cheyenne Division of Computer Associates International, Inc., Compaq Computer Corporation, Coresoft, Exact Software, Great Plains Software, NetPhone, Oracle Corporation, Platinum Software, Ramp Networks, SBT Accounting Systems, Solomon Software, STAC, Time Line, teltrust.com, U.S. Robotics, Vinca, and others (see attached partner statements of support).

The Web site also includes instructions on how to build a particular solution, the components required to assemble the solution, and criteria on how the solution has been tested. This comprehensive information saves resellers time when creating and testing various application solutions, because they avoid trial and error in designing whole networks around various business applications. In addition, resellers can take advantage of leads generated from Novell and partner companies' joint marketing efforts, including advertising, seminars, and direct mail to create end-user awareness of these solutions.

"We recognize that customers don't make their purchasing decisions based on individual products; they demand complete multi-vendor solutions," said Don Chapman, vice president of North American sales and field marketing. "Through Solution City, Novell and its partners are collaborating to give resellers the opportunity to generate revenue and to meet the customer demand for complete solutions more quickly without having to create each solution from scratch."

Solution City extends and enhances the Novell Yes Program, in which Novell certifies third-party hardware and software products that meet compatibility requirements for IntranetWare™, GroupWise™, ManageWise™, NetWare, and telephony. Solution City brings together multiple Yes products and uses KeyLabs, a leading independent test facility to ensure their integration into fully-tested solutions.

Resellers interested in viewing solution recommendations or receiving customer leads can register for the program on the Solution City Web site, located at http://www.novell.com/partner/scity. Novell will continue to enhance the Solution City program based on feedback and input from channel partners and customers.

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. 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 and NetWare are registered trademarks, and GroupWise, IntranetWare, IntranetWare for Small Business, ManageWise and Yes are trademarks of Novell, Inc. All other registered trademarks and trademarks are the property of their respective holders.

Press Contacts:
Terri Molini
Novell, Inc.
(408) 577-7887
Internet: tmolini@novell.com

Lori Hafen
Cunningham Communication, Inc.
(415) 858-3787
Internet: lori@ccipr.com

Solution City Partner Statements of Support

3Com
"For the majority of small businesses, investing in networking has become a competitive imperative," said Chuck Yort, director of 3Com Corporation's Small Business Operations. "By defining pre-tested, high-quality solution sets, Novell's Solution City provides resellers and their customers the assurances they need to quickly harness the power of networking."

CallWare
"CallWare is committed to providing total business communications solutions for all corporate users. Solution City delivers all the information necessary for resellers to provide the most complete networking and communications solutions to fit the needs of any business."

Cheyenne Division of Computer Associates
"The Cheyenne division of Computer Associates is delighted to support Novell's Solution City Program," said Wayne Lam, vice president and general manager, NetWare Division, Cheyenne division of Computer Associates International, Inc. "We see the program as a precedent-setting initiative to offer users a completely pre-qualified, integrated solution for their needs. Clearly, both our reseller channel and worldwide customer base will benefit from the inclusion of Cheyenne's storage management, directory management, antivirus, and communications offerings in the Solution City Web site."

Compaq
"Novell hits the mark with Solution City," said Bob Fernander, vice president, Enterprise Marketing, Compaq North America. "Compaq continually strives for new and better ways to provide our resellers with the resources they need to quickly and confidently offer complete solutions to their customers. Participating in this program is one more way for us to work with Novell to heighten the level of support we offer our resellers and ultimately, our customers."

Coresoft
"Novell's Solution City is a progressive move to strengthen and enhance VAR channels and relationships," said Dan Garrison, president of Coresoft Technologies, a communications software development company. "As we prepare to launch our new TSAPI-compliant communications management software, Coresoft is relying heavily on well-trained VARs and systems integrators to successfully install our product which integrates with components from a variety of manufacturers. Solution City considerably strengthens Coresoft's ability to develop a sophisticated and specialized channel for selling our product."

Exact Software
"Exact Software was the first European vendor of business and accounting software to join the Solution City-initiative, for we expect it to be a success. It fits the needs of the market and our international expansion strategy," said Nils Veldhuisen, managing director of Exact international sales.

Great Plains Software
"With the surging number of people using the Net as a component of their business processes, Novell's innovative Solution City provides tremendous value to resellers and other industry vendors as a 'complete solution' source," said Dennis Erdle, Dynamics General Manager at Great Plains Software. "Solution City's showcase of tested solution sets and Yes-compliant products provides a one-stop, multi-vendor information center where the key components to assemble a complete business solution are brought together. It can save resellers and consultants tremendous time and energy and let them focus on what they do best--implementing proven customer solutions."

NetPhone
"At NetPhone, we are focused on helping customers choose best-of-breed computer telephony solutions that meet the evolving needs of today's small and branch office environments," said Bob Olsen, NetPhone's vice president of marketing. "With Novell's Solution City program, we are able to quickly respond to those needs by offering complete solutions that optimize our customers investments in NetPhone and Novell products."

Oracle
"Solution City provides an excellent forum to bring customers best-of-breed multi-vendor solutions that have been selected and fully tested. We look forward to working with Novell and partners to bring these industry-leading solutions based on Java, Novell Directory Services (NDS), and Network Computing Architecture to customers and resellers through the Solution City program," stated Polly Sumner, vice president, Oracle Worldwide Alliances.

Ramp Networks
"With Solution City, Novell brings together different industry partnerships all aimed at serving the needs of small businesses. Ramp Networks is excited about the opportunity to present our WebRamp IPX Gateway with IntranetWare for Small Business as an excellent solution for small businesses wishing to get on the Internet."

SBT
"We support Solution City because we see benefit in the testing process. It delivers clear value for the vendor customers and channel partners.This is a precedent-setting initiative; in a multi-vendor world, we need this kind of multi-vendor program."

STAC
"We believe Novell hit the mark in responding to the needs of businesses of all sizes with the Solutions City Reference Platform," said Michael W. Harris, director, Stac's Storage and Management Group. "Stac applauds Novell's effort to provide customers and channel partners with tested networking solutions. Replica 3 is the ideal disaster recovery and backup solution for IntranetWare's small business and enterprise customers because of its complete, easy- to-use and fast 3 Keystroke Disaster Recovery J backup protection as well as its tight integration with Novell's networking products."

teltrust.com
"teltrust.com is very excited to participate in the Solution City program. Novell is offering its program participants the opportunity to forge new alliances and access channels that we could otherwise only dream about. We are given opportunities to create bundles with new partners brought together under Novell's direction, and then we can participate in marketing these solutions together, leveraging each company's strengths and customer base." Novell's solution providers and channel partners are now given clear, integrated solutions which have been tested and proven to meet Novell's rigorous standards of performance and integration. There is clear value here for all, the partner, the channel and the customer."

Time Line Solutions
"Novell's Solution City has set a new standard, even redefined, the term 'seamless integration'," said Mike Webb, president and CEO of Time Line Solutions Corporation. "The extensive testing assures that both resellers and their customers save time, money, and guesswork."

Vinca
"Solution City is a tremendous resource for channel partners to have direct access to tried and tested networking solutions for all sizes and types of organizations," said Brent McKinley, vice president, Marketing, Vinca Corporation. "This resource can quickly expand the vision of resellers and customers to include more high-end functionality, such as high availability, into the networking solutions they recommend. Solution City's multi-vendor approach is definitely the wave of the future and we believe it is especially significant for the numerous small companies looking for fully integrated solutions."