Press Release

Novell Awarded More Than $300,000 in Counterfeiting Lawsuit

Default Judgement Granted in New Jersey Case

PROVO, Utah — May 12, 1999 — Novell®, Inc. announced that it has been awarded more than $300,000 in its case against Masami Takaki of Carlstadt, N.J. Novell brought the lawsuit against Takaki in April 1998.

The lawsuit, filed in the U.S. District Court for the District of New Jersey, alleged that Takaki created and distributed a counterfeit version of Novell's NetWare® product copied from a legitimate NetWare product running at his previous employer's business. The suit also alleged that Takaki infringed upon the Novell and NetWare trademarks.

Novell became aware of the problem when a call was received on its Piracy Hotline. The customer became suspicious after Takaki had provided him with what appeared to be a counterfeit diskette with a homemade Novell label.

"We are pleased with the court's decision in this case to crack down on software counterfeiting," stated David Bradford, senior vice president and general counsel for Novell. "We are also pleased to know that our Piracy Hotline is being used as a resource for our customers in situations just like this."

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/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, consulting, 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.

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