Press Release

Novell Applauds Administration's Signing of Executive Order on the Use of Legal Software

PROVO, Utah — October 1, 1998 — Novell, Inc today announced its support for the Administration's new Executive Order that will further enhance software management within the United States government and help encourage other nations to crack down on software piracy.

The Executive Order will require all federal agencies to educate employees about the legal and proper use of software, and to tighten and strongly enforce software management procedures including audits and record keeping.

"This is an important step by the President that underscores U.S. global leadership in information technology," said Dr. Eric Schmidt, Novell Chairman and CEO. "This Executive Order makes it clear that the highest level of the U.S. federal government will not tolerate software piracy. Federal agencies, which are among the largest users of software, are setting a positive example for all Americans and the rest of the world."

The effects of software piracy ripple throughout the economy, translating into lost jobs, lost wages and reduced tax revenues. The Business Software Alliance estimates that software piracy in 1996 cost 130,000 Americans jobs, $5.6 billion in lost wages, and $1 billion in lost tax revenues for all levels of government.

Novell works with industry groups such as the Business Software Alliance (BSA) and the Software Publisher's Association SPA (SPA) and maintains an aggressive program of its own to combat illegal use of its copyrights and software. The program is focused on ensuring that Novell, its partners, and sales channel receive the appropriate revenues for the sale and use of Novell products and to assist end-users victimized by software pirates.

Novell is also responding to the needs of organizations faced with the complex task of managing software licenses in today's networked environments. Novell's directory service (NDS) and related Novell solutions such as ManageWise make software usage easier to monitor and manage for organizations of all kinds.

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, NetWare and Novell Directory Services are registered trademarks, and GroupWise, NDS and Z.E.N.works are trademarks of Novell, Inc. All other trademarks are the property of their respective holder.

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