Press Release

Novell Receives Landmark Judgement in Software Piracy Ruling

Utah Company Found Liable

PROVO, Utah — November 2, 1998 — Novell, Inc. announced that it has won a landmark ruling in its case against Network Trade Center, Inc. (NTC) and its president and owner Mark Bondiett. The court awarded Novell $25.9 million in the case first filed by Novell in 1995.

The lawsuit, filed in the U.S. District Court for the District of Utah Central Division, alleged that NTC had fraudulently obtained upgraded Novell products and then sold them to unsuspecting customers in both the United States and Mexico. The Court determined that NTC and Bondiett were liable and awarded Novell its claim for damages in the amount of $25.9 million plus attorney's fees. This is believed to be the largest ruling ever in a software piracy case.

"We are extremely pleased with the Court's ruling in this matter. We want to send a clear message that if you fraudulently obtain or sell Novell's products, Novell will pursue the matter to the fullest extent of the law," stated David Bradford, senior vice-president and general counsel for Novell.

Novell received a large amount of calls concerning NTC from customers, competing resellers and from many who saw ads in trade publications. Novell's anti-piracy group conducted an extensive investigation into the matter and spoke with customers and former employees of NTC.

Novell investigated over 1200 software piracy 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