License Gives Non-U.S. Enterprises Access to Directory-Enabled Security Advantages of Novell's Internet Solution

PROVO, Utah — October 19, 1998 — Novell announced today that it has received approval from the U.S. Government to export BorderManager Virtual Private Network (VPN) with 128 bit encryption to foreign commercial firms in 40 different countries around the world. Novell received this license in advance of the overall relaxation of U.S. encryption export controls, which will be formalized in a new set of regulations in coming months. The license will give most international customers full access to Novell's directory-enabled VPN solution, allowing them the same high levels of Internet management and security enjoyed by Novell users in the U.S.

A VPN is a private network that encrypts data before sending it across a public network such as the Internet. This enables organizations to save money by leveraging the Internet to send secure data and communications between different sites. Novell's BorderManager VPN solution, now fully available to a broader range of international customers, uses Novell's industry-leading directory service (NDS) to make VPNs more secure and manageable and further reduce customer costs.

"After years of stalemate, we are finally beginning to see some real progress in the debate about U.S. encryption policy," said Dr. Glenn Ricart, Novell's Chief Technology Officer. "Secure electronic transactions are the bedrock of the new digital economy. With this license, Novell can give its international enterprise customers the same level of secure VPN encryption that we provide to our domestic customers."

Nine technology companies, including Ascend, Bay Networks, Cisco Systems, 3Com, Hewlett Packard, Network Associates, Red Creek Communications, and Sun Microsystems along with Novell petitioned the Commerce Department for the approval of "private door-bell" encryption products. This "private door-bell" approach to encryption products ensures privacy while responding to the concerns of law enforcement authorities. Novell will be among the first firms to export a product under the new export controls.

In Atlanta, GA, at the Networld + Interop trade show today, Novell Inc., also announced a new addition to its BorderManager Internet security management product family. BorderManager VPN Services 3 is now available in a controlled beta program to select customers. Customers seeking the most cost effective method for securely connecting remote users, organizations, customers and suppliers accessing confidential data over the Internet can do so with BorderManager VPN Services 3.

Novell's BorderManager VPN 3, the secure remote connectivity component of the BorderManager Enterprise Edition Suite, will now be available as a stand alone solution or as part of Novell's complete Internet security management suite for NDS networks, which includes directory based firewall, VPN, authentication and caching services.

Several of Novell's products will now be available to foreign commercial firms. BorderManager v2.1, which is currently shipping, as well as BorderManager Enterprise Edition 3 and BorderManager VPN Services 3 which will ship later this year, are eligible to be exported under the new regulations.

About Novell

Novell, Inc. (NASDAQ:NOVL) is the world's largest network software company and the leader in directory-enabled network solutions. Novell solutions make networks more manageable and secure and reduce the total cost of ownership for organizations of every kind and size. Novell's worldwide channel, developer, education and technical support programs are the most extensive in the network computing industry.

For information on Novell's complete range of products and services, contact Novell's Customer Response Center at (888) 321-4CRC (4272), or visit Novell's Web site at www.novell.com. Press may access Novell announcements and company information on the World Wide Web at www.novell.com/pressroom.

For More Information:
Jonathan Cohen
Novell, Inc.
Phone: 408-577-7268
Internet: jcohen@novell.com