Press Release

Novell Files Suit against Utah Company

Lawsuit Alleges Sale of Stolen Property, Product Tampering, Copyright, Trade Name and Trademark Infringement

PROVO, Utah -- May 27, 1998 -- Novell, Inc. announced that it has filed a lawsuit against Computer Recyclers of Orem, Utah and four individual defendants. The lawsuit alleges that Computer Recyclers infringed on Novell's copyrights, trademarks and trade names. It also alleges unfair competition and false advertising under the Trademark Act of 1946.

The suit alleges that Computer Recyclers received and sold stolen CD-ROMs imprinted with Novell's intraNetWare for Small Business product that had been slated to be destroyed and recycled in Ireland, falsified forms in order to qualify for lower upgrade pricing and obtain unauthorized upgrades and used a heat gun to remove labels thus altering Novell packaging.

Novell's anti-piracy group continues to receive multiple complaints from customers, resellers and former employees of Computer Recyclers.

"The scope and size of this abuse made it necessary for Novell to file suit," stated David Bradford, senior vice president and general counsel. "Novell intends to vigorously enforce its intellectual property rights regardless of the location of the offenders."

Novell investigates over 500 software piracy 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

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, as well as the network computing industry's most comprehensive education and technical support programs. Information about Novell and its complete range of products and services can be accessed on the World Wide Web at http://www.novell.com.

Novell, intraNetWare for Small Business and NetWare are trademarks of Novell, Inc.

Novell Contact:
Ed Morin
Novell, Inc.
Phone: (801) 228-8844
Fax: (801) 228-8875
Internet: rbarker@novell.com