Press Release

Novell Files Lawsuit against New York Company

Lawsuit Alleges Computer Add-Ons Tampered With Novell Packaging

PROVO, Utah — October 27, 1998 — Novell, Inc. announced that it has filed a lawsuit against Computer Add-Ons Inc. of Flushing, New York and several individuals for copyright infringement, false advertising and dilution of trademarks, among other claims.

The lawsuit, filed in the United States District Court for the Eastern District of New York, alleges that Computer Add-Ons reproduced and used Novell's trademarks and logos in violation of Novell's rights. The suit also alleges that Computer Add-Ons tampered with the packaging of Novell software to make it appear that upgrade software was original software. The lawsuit also states that Computer Add-Ons then sold the tampered product to unsuspecting customers that were not eligible for upgrades.

Novell further alleges that Computer Add-Ons obtained and sold unbundled original equipment manufactured (OEM) Novell software. Novell also believes that Computer Add-Ons used the Novell and NetWare trademarks and Novell logo in their advertising to create the misleading impression that Computer Add-Ons is in some way authorized by Novell.

"These kind of business practices not only confuse the honest customer looking to purchase quality Novell products, but also hurt our reseller partners who sell product at competitive prices," stated David Bradford, senior vice-president and general counsel.

Novell investigated over 1200 cases worldwide in fiscal 1997. More than $11 billion each year is lost to software piracy, according to the Business Software Alliance (BSA) and Software Publisher's Association (SPA). Novell is an active member of both the SPA and BSA.

Novell has established an anti-piracy group and telephone hotline for reporting illegal use of Novell software or making related inquiries. Novell's piracy hotline receives an average of 40 calls per week. Call 1-800 PIRATES (800-747-2837) or send e-mail to pirates@novell.com. The anti-piracy group also has a web site at www.novell.com/programs/piracy.

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.

Novell and NetWare are trademarks of Novell, Inc.

Novell Contact:
Ron Barker
Phone: (801) 228-8844
Fax: (801) 228-8875
Internet: rbarker@novell.com