Press Release

Court Rules RTI Willfully Infringed on Novell's Copyrights

Novell Wins Ruling of $100,000 per infringement

Provo, Utah -- June 3, 1997 -- Novell Inc. announced that it has won a summary judgment in its case against RTI of Killeen, Texas and its president Shawn Richeson. The ruling, granted in the United States District Court for the Western District of Texas in Waco states that RTI and Richeson willfully infringed on Novell's copyrights and that Novell is entitled to the $100,000 per infringement. Novell's request for $200,000 in statutory damages was granted as well as attorney's fees.

Novell's anti-piracy team received information that RTI was selling counterfeit versions of Novell software to unsuspecting customers. Federal Marshals, working with Novell's anti-piracy team, seized RTI's equipment, business records and counterfeit copies of software. The equipment included computers used to manufacture the counterfeit software, high-speed disk duplicating machines, shrink wrap equipment and the blank disks and labels used in the counterfeiting.

In November 1994 Novell sued Richeson and RTI for illegally manufacturing and selling counterfeit software. RTI filed for bankruptcy in August 1995, but Novell prevailed in its claim that intentional torts, such as copyright infringement, cannot be discharged in bankruptcy

"Novell will continue to protect our customers and our reseller channel to the fullest extent of the law," stated David Bradford, senior vice president and general counsel for Novell. "Novell will now proceed to collect on the judgement awarded to it by the Court. It is important to note that this type of damage award is one which is not dischargeable in bankruptcy."

Novell maintains one of the industry's leading anti-piracy programs and has set up a hotline for reporting illegal use of Novell software or making related inquiries. Call 1-800-PIRATES (800-747-2837) or send e-mail to pirates@novell.com. Novell also maintains a website at www.novell.com/programs/piracy/piractoc.h tml to educate and inform the public about software piracy.

Novell, Inc. is a member of the Business Software Alliance (BSA) and the Software Publisher's Association (SPA), organizations devoted to fighting software piracy.

Novell, Inc. (NASDAQ: Novell), 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, any time and any place. Novell partners with other technology and market leaders to help customers make networks a part of their everyday lives.

Novell is a trademark of Novell, Inc.

Press Contact:
Ron Barker
Phone: (801) 228-8844
Fax: (801) 228-8875
Internet: rbarker@novell.com