Press Release

Novell Wins Patent Infringement Lawsuit against Action Technologies, Inc.

U.S. Court of Appeals Upholds Earlier Decision

PROVO, Utah — June 16, 1998 — Novell, Inc. announced that, as expected, the United States Court of Appeals for the Federal Circuit has affirmed the invalidity opinion of the United States District Court for the Northern District of California regarding the patent involved in a patent infringement lawsuit brought against Novell by Action Technologies, Inc. ("ATI").

In late 1995, ATI sued Novell, alleging that Novell's GroupWise product infringed U.S. Patent No. 5,216,603. After the District Judge determined that the patent was invalid, ATI appealed. The U.S. Court of Appeals has now agreed that ATI's patent is invalid, and that ATI's arguments to the contrary are without merit.

"Patent litigation can be very expensive, but it is important that software companies take a strong stance to contest patent infringement claims where prior art references exist," stated David Bradford, senior vice president and general counsel for Novell. "In this case where substantial prior art was found, Novell was convinced that the ATI patent could be overturned. We are pleased that the Federal District Court and Circuit Court of Appeals agreed."

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.

Novell and GroupWise are trademarks of Novell, Inc.

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