Press Release

Novell to Bundle NetObjects Fusion 3.0 with NetWare for Small Business Platform

Award Winning Web Authoring Product and Industry Leading Network Server to Enable Small Businesses to Create and Deploy Compelling Web Sites

PROVO, Utah — October 21, 1998 — Novell, Inc. today announced an agreement with NetObjects, Inc., to license the company's flagship Web authoring product, Fusion 3.0, for bundling and shipment with Novell's NetWare for Small Business 4.2. product in the fourth quarter of calendar year 1998. NetObjects Fusion will bring a robust and easy-to-use Web design tool to Novell customers, enhancing NetWare for Small Business as a platform on which smaller businesses can both host and design their Internet and intranet Web sites.

"NetObjects has established itself as a developer of Web development products that enable businesses to build dynamic, interactive Internet and intranet sites," said Christopher Stone, Novell senior vice president for strategy and business development. "Our relationship will expand Web development on the NetWare directory-enabled platform, making it easier than ever before, while advancing NetWare as a premiere platform for hosting Internet and intranet sites in businesses of all sizes."

"We're pleased to bring the power and versatility of NetObjects Fusion to the installed base of Novell users, starting with Novell's award-winning small business solution," said NetObjects CEO, Samir Arora. "Novell's leadership in directory-enabled networking, combined with leading Web design products from NetObjects, will give customers the platforms and tools they need to transform the Internet and intranets into powerful business tools."

As part of the relationship between the two companies, Novell also announced that its Internet Equity Fund has made an investment in NetObjects in exchange for a minority interest in the company. Christopher Stone will also serve as an observer on the NetObjects board of directors. Novell established the Internet Equity Fund in 1997 to invest in growing companies with technologies and products that exploit Novell's NetWare server platform and Novell Directory Services (NDS).

NetWare for Small Business 4.2

NetWare® for Small Business 4.2 will be the next and latest version of the company's industry-leading networking solution for small businesses. NetWare for Small Business 4.2 is Year 2000-ready and includes an increased user count that will allow organizations to expand their networks at their own pace, as well as new features and technologies developed to help small businesses quickly and easily connect to the Internet.

The licensing scheme enables organizations to add up to 50 users, one at a time. This is more in line with the needs of growing businesses today according to feedback received from customers, resellers and OEM partners.

To harness the power of the Internet and to maximize the effectiveness of a small business's limited resources, NetWare for Small Business 4.2 includes a new Internet Connection Wizard. This tool makes it easier for small businesses to connect their networks to the Internet by automating the process. Network administrators or resellers need only fill in answers to a series of questions and the Internet Connection Wizard does the rest. With the speed advantages provided by Novell BorderManager FastCache, also new in NetWare for Small Business 4.2, users obtain a fast, simple way to connect to the Internet and leverage all of the information resources and technology benefits therein.

NetObjects Fusion

The latest version of award-winning NetObjects Fusion® delivers an open site-building environment that provides flexibility and layout control along with robust site management and cross- browser support. Building on the site-oriented, visual approach of NetObjects Fusion, version 3.0 includes features and enhancements that let site-builders build the sites they want, without limitations. Site-builders can choose from graphical page layout, a text editor for lean HTML, or use the external HTML editor of their choice. In addition, NetObjects Fusion users can take advantage of Dynamic Actions®, the first visual, message-based environment for creating DHTML-based animation and interactivity as well as create sites that maintain layout fidelity across 2.x, 3.x, and 4.x browsers with Everywhere HTML®.

Novell Internet Equity Fund

Novell's Internet Equity Fund investments, to date, address important emerging Internet and enterprise software technologies. In addition to NetObjects, Novell has invested in Evergreen Internet, Inc., Chandler, Arizona; GlobalCast Communications, Inc., Fremont, California; ObjectSpace, Dallas, Texas, NetPro Computing, Inc., Scottsdale, Arizona; and NetVision, Inc., Orem, Utah.

The Novell Internet Equity Fund promotes Novell's interests in advancing leading-edge, networking technologies through minority investments in development-stage companies that are in their first or second rounds of financing. Companies interested in the Fund can find more information about it at http://developer.novell.com/fund/.

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.

NetObjects

NetObjects, Inc. is a privately-held company that is funded by IBM, Perseus LLC, AT&T Ventures, Norwest Venture Capital, Venrock Associates, Rae Technology LLC and private investors. The NetObjects product family consists of NetObjects Fusion Personal Edition, NetObjects Fusion 3.0, NetObjects Authoring Server Suite, NetObjects ScriptBuilder® 2.0 and NetObjects BeanBuilder®. NetObjects develops and markets award-winning Web site building software.

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

Press Contacts:
John Pilmer
Novell, Inc.
Phone: (801) 222-5109
Internet: jpilmer@novell.com

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