Press Release

Novell Sets Ship Date, Pricing for NetWare 5

Delivers pure IP Network Platform for Internet-Enabled Business

PROVO, Utah August 10, 1998 Novell, Inc., fast achieving leadership in Internet and intranet software, today announced NetWare®5 will ship by September 20, 1998. This flagship product signals the evolution of the world's most trusted network software into an even more powerful platform for Internet-enabled business. Based on open Internet standards, NetWare 5 allows customers to extend their networks and effectively manage distributed applications across diverse platforms including the World Wide Web. Powered by NDS™, Novell's industry-leading directory service, NetWare 5 enables businesses of all sizes to dramatically reduce the cost and complexity of deploying, managing and securing their networks including applications, desktops, users, data, printers, protocols and much more.

NetWare 5 is a Year-2000-ready platform designed to help businesses make a smooth transition to the networks of the 21st century. Businesses worldwide have evaluated over 350,000 pre-release copies of NetWare 5. Currently in final testing, NetWare 5 has proven so reliable that many businesses are already using it as part of their production networks. Novell itself currently runs NetWare 5 on more than 264 internal servers, supporting thousands of users as well as www.novell.com.

"Today, Novell moves to center stage in the Internet marketplace," said Dr. Eric Schmidt, Novell chairman and CEO. "NetWare 5 takes everything NetWare is famous for the reliability, the security, the directory technology years ahead of competitors and magnifies it in an Internet world of open standards. With NetWare 5, customers leap ahead of the pack with smarter, more manageable and efficient networks. Novell has regained its rightful place as the only networking vendor who can get them there."

NetWare 5 combines the maturity and reliability of the traditional NetWare network with the global reach and open standards of the Internet. Compared to the multiple protocols used in general-purpose systems such as Microsoft Windows NT, NetWare 5's "pure" Internet Protocol (IP) uses network bandwidth much more efficiently, simplifies protocol management and offers better integration with today's solutions. NetWare 5 also includes an enhanced version of NDS, including support for the LDAP Version 3 communication standard for interoperability with other directories and new directory-enabled security features including public/private key technology and support for the various levels of international cryptography. NetWare 5 also includes the world's fastest Java Virtual Machine (JVM) for running server-based applications and services written in Java, the programming language of the Internet.

Other new features of NetWare give customers a range of additional tools and solutions to get the maximum value out of their networks. These include a five-user license of Oracle8, the best-selling database management software from Oracle Corp. and an integrated Netscape FastTrack Server. For additional feature information, please refer to Novell's NetWare 5 Web site at http://www.novell.com/netware5.

NetWare 5 Receives Accolades

NetWare 5 is the most widely tested product in Novell's history. This pre-release exposure allowed customers a first-hand evaluation of NetWare 5's solid reliability and product quality. "I've been seeing tremendous pent-up anticipation by NetWare users who are excited for this new IP-based version of NetWare," said Gregory Uehling, executive vice president of Devise Associates, Inc., a New York network integrator. "Based on the customer enthusiasm we're seeing, it looks like we will be upgrading many of our established NetWare customers to NetWare 5. The combination of features and Novell's outstanding technological knowledge will enable our customers to finally make the promise of Java real in their organizations."

"We've been testing the beta for several months now and are very excited about the product," said Kenneth Fingerlos, system network analyst, University of Idaho. "Key features that influence our decision to deploy NetWare 5 include NSS (Novell Storage Services), memory protection, and native IP. We are already discussing our rollout schedule."

"IDC forecasts that NetWare will be part of the corporate network infrastructure for quite some time to come." said Dan Kusnetzky, Program Director for International Data Corporation's Operating Environments and Serverware services. "With NetWare 5, Novell is addressing customer requirements for IP-based networking and Java while maintaining compatibility with their current networks."

Channel Ready to Meet Demand

In preparation for the shipment of NetWare 5, Novell created a number of channel programs designed to optimize sales and support resources. Novell Education partnered with independent Novell Authorized Education Centers (NAECs) to provide a series of "boot camps" comprehensive, hands-on technical workshops for channel partners and Certified Novell Engineers (CNEs) around the world.

In addition, Novell Consulting is offering day-long NetWare 5 consulting workshops to enterprise consulting partners, platinum reseller partners and Master License Agreement (MLA) customers starting in July and continuing through September. These sessions ensure that consultants are fully versed in the benefits and capabilities of NetWare 5.

NetWare 5 Pricing

Novell today also announced NetWare 5 suggested pricing to its worldwide sales channel of over 20,000 resellers, distributors and partners. A NetWare server with a five-user license retails for $1195, US MSRP additional 5,10, 25, 50,100, 250 and 500-user client packs are available for customer purchase in any combination. Upgrade pricing is available for current NetWare customers. Customers and partners can visit http://www.novell.com/passport for complete pricing. Resellers and distributors may elect to offer special price promotions to their customers.

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

Press Contacts:
Blake Stowell
Novell, Inc.
Phone: (801) 228-5083
Internet: bstowell@novell.com

Danielle Epstein
Cunningham Communication, Inc.
Phone: (650) 858-3745
Internet: depstein@ccipr.com