Press Release

Novell Files Counterfeiting Lawsuit against New Jersey Man

Action Follows Call to Novell's Piracy Hotline

PROVO, Utah -- April 24, 1998 -- Novell, Inc. announced that it has filed a lawsuit in the U. S. District Court for the District of New Jersey against Masami Takaki of Carlstadt, New Jersey. The suit alleges that Takaki created a counterfeit version of Novell's NetWare product from the legitimate NetWare product running at his previous employer's business. The suit further alleges that Takaki then sold and installed the counterfeit NetWare product. In addition, the suit alleges that Takaki made and/or distributed counterfeit copies of the Novell labels and made other unauthorized uses of the Novell and NetWare trademarks.

Novell became aware of the problem when a call was received on its Piracy Hotline. The caller had been asked by a customer to reinstall the Novell NetWare product purchased from Masami Takaki, but apparently no documentation had been provided. After the customer contacted Masami Takaki to get the documentation, Takaki provided a counterfeit disk with a homemade Novell label. The caller and the customer then agreed to contact Novell directly through the Piracy Hotline.

"This case clearly illustrates the effectiveness and value of Novell's Piracy Hotline," stated David Bradford, senior vice president and general counsel for Novell. "Novell is always ready to listen to customers and respond to their problems and concerns. The hotline is just one of many powerful tools that facilitate communication between Novell and our customers."

Novell investigates over 500 cases worldwide each year. 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 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. Novell's piracy hotline receives an average of 40 calls per week. Call 1-800 PIRATES (800-747-2837) or send e-mail to pirates@novell.com.

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. 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 trademarks of Novell, Inc.

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