Press Release

Novell Awarded over $800,000 in Software Piracy Lawsuit

Default Judgement Granted In Georgia Case

PROVO, Utah — October 29, 1998 — Novell, Inc. announced that it has been awarded over $800,000.00 in its case against Galactech, Inc., a corporation based in Atlanta, Georgia.. Novell brought the lawsuit against Galactech, Inc. in November of 1997.

The lawsuit, filed in the U.S. District Court for the Northern District of Georgia, alleged that Galactech distributed and sold counterfeit copies of Novell's NetWare server operating system product. Novell became aware of the problem when one of its partners purchased a copy of the counterfeit product and contacted Novell's anti-piracy group with the information.

Novell's anti-piracy group examined the counterfeit product and then conducted an audit of Galactech's sales and purchase records. The examination determined that Galactech had distributed and/or sold $800,000.00 worth of counterfeit product.

"Novell has invested a lot of energy and resources in establishing and publicizing its Anti-Piracy group," stated David Bradford, senior vice-president and general counsel. "It is gratifying to see our partners utilizing that group to report counterfeit product and other problems to Novell. The Anti-Piracy group exists to serve our customers and sales channel."

Novell investigated over 1200 cases of software piracy 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