Press Release

Novell Settles Infringement Claims for $525 Thousand

Settlement Reached in Software-Related Lawsuit

PROVO, Utah — December 14, 1998 — Novell, Inc. announced that it has settled its lawsuit against Mahboobeh, Inc., also doing business as Macroland, Inc. of Gaithersburg, Maryland. The settlement included a cash payment of $525,000 which has already been received by Novell.

The lawsuit, filed in the U.S. District Court for the District of Maryland, Southern Division, alleged that Macroland, Inc. violated its licensing agreement with Novell. Under the terms of the agreement, Macroland, Inc. was permitted to sell licenses of Novell software products and was required to report those sales to Novell. The lawsuit alleged that Macroland, Inc. had under reported the license sales to Novell.

The lawsuit also alleged that Macroland, Inc. had improperly acquired and distributed Novell upgrade products to customers that were not entitled to purchase Novell upgrades. In addition, after the lawsuit was filed, Novell discovered that a number of counterfeit copies of its NetWare software had allegedly been distributed by Macroland, Inc.

"As Novell has demonstrated over and over again, we take the matter of software piracy very seriously," stated David Bradford, senior vice president and general counsel. "We are pleased that Macroland has agreed to take responsibility and settle this matter".

Novell investigated over 1300 cases worldwide in fiscal 1998. 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. Call 1-800 PIRATES (800-747-2837) or send e-mail to The anti-piracy group also has a web site at

About Novell

Novell, Inc. (NASDAQ:NOVL) is the leading provider of network software enabled by directory services. Novell Internet solutions make networks more manageable, secure and affordable 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 Press may access Novell announcements and company information on the World Wide Web at

Novell and NetWare are trademarks of Novell, Inc.

Novell Contact:
Ron Barker
Novell, Inc.
Phone: (801) 228-8844
Fax: (801) 228-8875