Press Release

BT Calls on Novell

UK Telecommunications Provider Further Invests in Existing Technology and Signs Up with Novell

PROVO, Utah — June 2, 1999 — BT, one of the world's largest telecommunications companies, has renewed its license agreement with Novell®, Inc. and upgraded its NetWare® investment in the biggest ever Novell contract outside of the United States.

The project, completed this year and worth more than $5 million, includes the deployment of Novell NetWare 4.11 and Novell Directory Services® (NDS™) to 70,000 seats throughout the UK, with plans to upgrade to NetWare 5 over the next few years.

Chris McGarr, large system design manager for BT, said, "Two years ago we upgraded over half of our network to NetWare 4.11 and the excellent results made the decision to upgrade the entire network an easy one. NetWare is BT's platform of choice for deploying directory services and for file and print. NDS also allows us to have a single point of management and control.

"NetWare has proved to be a very reliable and stable platform which has enabled us to network our core business applications with ease and precision. The single point of administration provided by NDS also makes a significant contribution in terms of the total cost of network ownership, as problems in our offices across the country can be dealt with by IT managers at centralized locations."

BT felt that NetWare offered a lower cost of ownership and greater scalability and functionality in comparison to other network operating systems, and thus the decision was made to upgrade the entire network to NetWare 4.11.

Further underlining BT's commitment to Novell, the company has extended its agreement to utilize Novell's Premier Support service as well as contracting a dedicated systems engineer to monitor and manage the network.

"Novell UK is extremely pleased to continue the agreement with BT and grow the relationship with the UK's largest company and one of the world's largest telecommunications companies," said Steve Brown, Novell UK managing director. He continued, "BT has been an extensive user of Novell Directory Services. We have been using the directory to deploy NT Workstation to support line of business applications, and have been able to realize significant cost savings and benefits to the business."

About BT

BT is one of the world's leading providers of telecommunications services. With a market capitalization of around 65 billion pounds sterling, it is one of the largest private sector companies in Europe. Its principal activity is the supply of local, long distance and international telecommunications services and equipment in the UK, serving 28 million exchange lines. International direct-dialed telephone service is available to more than 200 countries and other overseas territories — covering 99 percent of the world's 800 million telephones.

BT is expanding its presence overseas rapidly and has operations in more than 30 countries worldwide, with joint ventures in the Republic of Ireland, France, Switzerland, Spain, Germany, Italy, the Netherlands, Sweden, New Zealand, Japan, Hong Kong, Singapore, Malaysia, Korea, India and Latin America.

Concert, a wholly owned subsidiary of BT, is based in the United States and develops advanced networking services for global companies. Today, Concert's intelligent network platform provides an array of global telecommunications services to more than 4,400 companies in over 50 countries.

In July 1998, BT announced the formation of a US$10 billion global venture combining its transborder assets and operations with those of AT&T and developing an intelligent Internet Protocol (IP)-based network which will support services such as global electronic commerce, global call centers and new Intranet based solutions. The joint venture, which includes Concert, is expected to be completed during the second half of 1999.

In the last financial year (1998-99), turnover, including BT's share of its associates and joint ventures' turnover, at 18,223m pounds sterling with a pre-tax profit of 3,257m pounds sterling.

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, NetWare and Novell Directory Services are registered trademarks, and NDS is a trademark of Novell, Inc. in the United States and in other countries. All other trademarks are the property of their respective holders.

Press Contact:
Julie Hatchett
Novell, Inc.
Phone: (801) 228-5073
Internet: jahatchett@novell.com