Press Release

Novell Announces More Than $1.3 Million in Piracy Settlements

PROVO, UTAH -- June 25, 1997 -- Novell, Inc. announced it has negotiated legal settlements worth more than $1.3 million involving five companies and two individuals. The majority of these settlements involved complaints of companies selling upgraded NetWare and IntranetWare as new product to unsuspecting customers.

The settlements are the direct result of leads from Novell's product tracking system and tips received from Novell's anti-piracy hotline. Established in 1990, the hotline receives on average 450 calls per month; the toll-free number is 1-800-PIRATES (1-800-747-2837).

Novell reached settlements with computer resellers Jaco Electronics, Micro Supply, Accord Systems, Digidrive, RTI and the individuals Fatemah Asadi and Vajiholah Sabet. Terms of the individual settlements are confidential.

"We take software piracy extremely seriously, and our anti-piracy group examines every piece of information it receives," said David Bradford, Novell senior vice president and general counsel. "Right now, Novell is looking into additional complaints involving companies accused of selling upgrades as new products, and we're also holding ongoing negotiations with other companies. Further announcements should come in the very near future."

More than $11 billion each year is lost to software piracy, according to the Business Software Alliance (BSA) and Software Publisher's Association (SPA). Novell investigates more than 500 cases worldwide every year. Novell is an active member of both the SPA and BSA.

Novell has established an anti-piracy group and telephone hotline for reporting illegal use of Novell software or making related inquiries. Call 1-800 PIRATES (800-747-2837) or send e-mail pirates@novell.com.

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, NetWare and IntranetWare are trademarks of Novell, Inc.

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