Press Release

Novell Files Suit Over Counterfeit Product Sold Online

Crackdown to Eliminate Pirated Software on the Internet Continues

PROVO, Utah — August 10, 1999 — Novell®, Inc. announced that it has filed a lawsuit against Gregg Olsen of Plainview, N.Y., for copyright and trademark infringement.

The suit, filed in the U.S. District Court for the Eastern District of New York, alleges that Olsen offered a counterfeit version of Novell's NetWare® product for sale on the Internet. Novell investigators made a test purchase after discovering the product on Yahoo! Inc.'s auction site during their regular course of monitoring online auctions. Acquired in the test purchase was a counterfeit license diskette for 1,000 users along with a NetWare 4.11 operating system CD. The product's retail value is nearly $48,000.

"We have refocused our efforts in combating piracy to include those individuals who are offering illegal Novell products over the Internet," stated David Bradford, senior vice-president and general counsel for Novell. "This will continue as a priority for us as long as people use the Internet as a vehicle to abuse our products and programs."

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