Press Release

Novell Announces Master License Agreement with the Department of Navy

WASHINGTON, D.C. — June 10, 1998 — Novell, Inc. today announced a Master License Agreement (MLA) with the U.S. Department of Navy that provides cost-effective per-user pricing for products and maintenance for such Novell products as the NetWare intelligent network server platform, the GroupWise collaboration and e-mail product, the ManageWise network management solution, the BorderManager family of network services, and Novell Directory Services for Microsoft Windows NT.

The MLA is executed via a Blanket Purchasing Agreement between DON and ASAP Software. It is the first enterprise software license agreement to be signed by the Department under the DON CIO initiative. The DON MLA will simplify the ordering process and provide DON activities with the lowest prices available for all Novell products.

Valerie Wallick, the Executive Director of the Office of the DON CIO stated, "When the DON CIO office stood up, it took on many major enterprise challenges. One of the efforts initiated was negotiating enterprise software licenses with our vendor community. This effort is aimed at reducing the present life cycle costs of the Department's IT systems. We are actively negotiating enterprise software license agreements to solve our 'today' cash expenditures. We want to get the best possible prices for all of the DON's end users. Novell, whose products have been on many of the Navy's omnibus contracts, aggressively pursued our offer and negotiated the first MLA agreement with us. I hope their willingness to provide the government and the taxpayers with the best possible deal will be emulated by all of the software vendors."

"Novell network solutions offer the Navy the security and reliability required for critical applications, as well as added cost savings through superior management and control of network resources," said Mike McLaughlin, Novell vice president for major markets. "This groundbreaking MLA creates opportunity in the Navy for upgrades to Novell's directory-enabled operating systems, which dramatically reduce network administration and management costs. In addition, the gangplank is now down for new Novell products such NDS for NT, which reduces the cost of and complexity of integrating NT applications into multi-vendor networks, and BorderManager, which provides content filtering and tight management and control of Internet access."

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, 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 as http://www.novell.com.

GroupWise, Novell and NetWare are registered trademarks and NDS is a trademark of Novell, Inc. All other trademarks are the property of their respective owners.

Press Contact:
Jonathan Cohen
Novell, Inc.
(408) 577-7268
jcohen@novell.com