Press Release

Novell Files Suit Against Online Auction User

Lawsuit Alleges Texas Company Sold Counterfeit NetWare

PROVO, Utah — April 12, 1999 — Novell®, Inc. announced that it has filed a lawsuit against MTZ Computers of Copperas Cove, Texas, and its owner Pete Martinez for copyright and trademark infringement.

The suit, filed in the U.S. District Court for the Western District of Texas, alleges that Martinez offered Novell's NetWare® product for sale through an Internet auction site. Novell investigators discovered the product during their regular course of monitoring online auction sites. Investigators made a test purchase and received a counterfeit diskette, which, in this particular case, was offered through eBay's auction site.

"Novell regularly monitors online auction sites in an effort to discourage exactly this type of practice," stated David Bradford, senior vice president and general counsel for Novell. "We will track down illegal activity, and we will file lawsuits, where appropriate, in order to protect our sales channel and to preserve the good name of Novell."

Novell investigated over 1,300 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 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 leading provider of network software enabled by directory services. Novell solutions give businesses total control of their private networks and the Internet, simplifying the management of user access and identity. 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 http://www.novell.com. Press may access Novell announcements and company information on the World Wide Web at http://www.novell.com/pressroom.

Novell and NetWare are trademarks of Novell, Inc. eBay is a trademark of eBay, Inc.

Novell Contact:
Steve Kirk
Phone: (801) 228-8801
Fax: (801) 228-8875
Internet: skirk@novell.com