Press Release

Novell Files Suit Against Another Online Auction User

Lawsuit Alleges Kansas Man Illegally Distributed NetWare Over the Internet

PROVO, Utah — May 3, 1999 — Novell®, Inc. announced that it has filed a lawsuit against Joseph C. Mandala of Wichita, Kan., for copyright and trademark infringement.

The suit, filed in the U.S. District Court for the District of Kansas, alleges that Mandala 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, which product, in this particular case, was offered through eBay's auction site. Investigators acquired several unauthorized NetWare diskettes through the online auction as well as directly from Mandala. The total value of the product acquired is estimated at more than $1.1 million.

"Novell will continue to monitor online auction sites and will take aggressive action to stop the unauthorized distribution of Novell products on such auction sites," stated David Bradford, senior vice-president and general counsel for Novell. "We will not tolerate our sales channel to be undermined by this type of illicit activity."

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 BSA and SPA.

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 world's leading provider of directory-enabled networking software. 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 registered trademarks of Novell, Inc. eBay is a trademark of eBay, Inc.

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