Press Release

Novell Renews Its Commitment to Silicon Valley

City Officials Join Networking Leader to Celebrate Ground Breaking for New San Jose Campus

San Jose, CA -- September 11, 1997 -- Novell, Inc. today welcomes San Jose Mayor Susan Hammer and other dignitaries to celebrate its renewed commitment to Silicon Valley and break ground on a new, state-of-the-art San Jose campus that will anchor the networking leader's presence in the area in the twenty-first century. With corporate headquarters in its original city of Provo, Utah, Novell has maintained a strong Silicon Valley presence from its days as a pioneer in business networks in the mid- 1980s to its current position as the leader in Internet and intranet software.

The 45-acre campus at 1900 Guadalupe Parkway will stand adjacent to San Jose International Airport, Highway 101 and the North First Street Light Rail, providing Novell's employees with an accessible workplace at the heart of the Valley's technology innovation and providing San Jose with a shining gateway to downtown. The campus, expected to be complete by December, 1998, includes 533,000 square feet of office and laboratory space in five granite and limestone-fronted buildings, as well as a glass-enclosed cafeteria, fitness center, athletic facilities, fountains, gardens, and tree-lined paths.

"As we begin construction on this beautiful new campus, Novell reaffirms that we are in Silicon Valley to stay," said Dr. Eric Schmidt, Novell chairman and CEO. "We are a global company with two anchors: one in Utah and one right here in San Jose. In both places, we are building for the future based on a high quality of life, world-class technical talent, and a favorable business climate. Our customers, partners, and employees will continue to enjoy the best of both places."

"Novell couldn't have chosen a better place for their new campus," said San Jose Mayor Susan Hammer. "I can imagine a Novell employee arriving at San Jose International and then getting down to work just a few minutes away. That same evening, the employee might commute home on the Light Rail or take it straight to one of the fine downtown restaurants or a Sharks game. This campus will make a great showpiece for San Jose and all that we offer as a great place to work and live."

The new campus will allow Novell to consolidate Silicon Valley operations currently taking place in seven buildings leased and three owned by the company in the Fortune Drive area of San Jose. Ample room will exist in the new campus for the approximately 1,000 people who work for Novell in Silicon Valley today, as well as for significant growth in business and the employee base. In the event of even greater growth, the company has prepared provisional plans for phased expansion on the site.

Consolidation of the Silicon Valley workforce parallels a similar move in Utah, where Novell recently announced plans to consolidate its workforce in Provo and nearly double the size of its headquarters there. Construction is scheduled to begin in the spring of 1998 on the new, state-of-the-art Provo facilities, which are expected to be complete by the spring of 2000.

"Consolidation in Provo and San Jose makes good business sense for Novell as we continue to improve efficiency, communication, and teamwork throughout our business," said Dr. Schmidt. "Our new facilities in Utah and Silicon Valley help us reduce operational overhead over the long range. In addition, we are creating superb work environments that are designed to attract the world's top networking talent."

The company currently bases key network protocol and Internet software engineers in San Jose, including the team developing the company's new breakthrough product, BorderManager, which manages and secures the interface between the corporate intranet and the Internet. San Jose is also base for various administrative and marketing personnel. Dr. Schmidt and the executive team use offices in both San Jose and Provo.

Ground breaking for the new campus follows City approval on an extensive environmental impact report. In cooperation with the City of San Jose, Novell is addressing traffic mitigation issues including the construction of new intersections and entrances in the Guadalupe Parkway area and Novell contributions to the North San Jose deficiency fees. Novell is also expanding its alternative commute programs that encourage employees to share rides and take advantage of public transportation such as the San Jose Light Rail.

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 service can be accessed on the World Wide Web at http://www.novell.com.

Novell and BorderManager are registered trademarks of Novell, Inc.

Novell Press Contact:
Austin Edgington
Phone: (408) 577-6213
Internet: aedgington@novell.com