Press Release

Novell Receives Cash Settlement in Piracy Case

Maryland Company Pays $175,000 to Resolve Copyright and Trademark Infringement Claims

PROVO, Utah — July 13, 1999 — Novell, Inc. announced that it has settled its lawsuit against MCW/At-Lan-Tec, Inc. of Gaithersburg, Md., and three individuals.

The settlement includes a cash payment of $175,000 plus the return of Novell product, both of which have already been received by Novell.

Novell sued MCW/At-Lan-Tec, Inc. in the U.S. District Court for the District of Maryland, alleging that MCW/At-Lan-Tec, Inc. had used Novell trademarks, trade dress and logos to sell Novell NetWare® upgrade licenses as original licenses. The lawsuit also alleged that the defendants acquired and sold unbundled Original Equipment Manufacturer (OEM) licenses and other unauthorized product to unsuspecting customers.

"We are pleased that our anti-piracy program has been successful in helping so many of our customers," stated David Bradford, senior vice-president and general counsel. "The successes over the past year serve as a reminder to our customers that we are here to help them."

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. In addition, detailed comparisons between Novell products and competitive offerings from other vendors are available on the Web at http://www.novell.com/advantage.

Novell and NetWare are registered trademarks of Novell, Inc. in the United States and other countries. All third-party trademarks are the property of their respective owners.

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