Press Release

digitalme Technology First Offering of Novell's New In-the-Net Services Group

Product Group to Deliver Internet Products and Services That Take Advantage of Novell Directory Services (NDS)

NEW YORK — Oct. 5, 1999 — As part of its public unveiling of digitalme™, a technology that will allow consumers to take control of their personal identity on the Internet, Novell (NASDAQ:NOVL) today announced the formation of a new In-the-Net Services Group whose charter is to deliver products and services targeted at delivering value to individual Internet users, signaling the company's entry into the business-to-consumer marketplace. In-the-Net products and services, based on Novell® Directory Services® (NDS®), will be sold to a variety of e-businesses, including portals, ASP/ISPs and retailers.

digitalme, as well as newly announced initiatives and partner alliances that promise to contribute to the proliferation of Internet solutions based on NDS, are the first of the projects undertaken by the new group. Steve Adams, who joined Novell from Citrix Systems, Inc., in July, is general manager of the group that will help ensure Novell is at the forefront of delivering e-business tools, applications and services for both individual Internet users as well as enterprises.

"The mission of our team is clear-cut: Improve the Web experience and make the Internet easier to use and more secure for consumers and the businesses that serve them," Adams said. "We are doing this by taking the core competencies of Novell — such as secure authentication of network users; cache systems that dramatically improve the speed and efficiency of Internet content delivery; and management of personal information and identity on a network — and making them available through what we call 'In-the-Net' services. Our initial focus is on relationship and identity management, where, with digitalme, we are setting the agenda for the marketplace."

According to Eric Schmidt, Novell chairman and CEO, "With the explosive adoption of NDS, end-users and CIOs are demanding more applications and services that can capitalize on the power of NDS on the Internet, which is essentially the world's largest network. This new unit will provide a center of gravity for executing Novell's Internet strategy."

Formation of the In-the-Net Services Group comes at a time when Novell has proven its prowess in the Internet application space. Recent new products include Single Sign-On, ZENworks 2 and BranchManager for NT. These products provide directory technology that run industry-standard APIs and protocols across multiple platforms, and make application deployment easier while at the same time delivering reliability and scalability.

New Initiatives and Alliances

Adams said Novell's In-the-Net Services Group expects to deliver a rich portfolio of Internet directory-based applications and services both from Novell and from an emerging lineup of third-party innovators, such as ClickMarks, EZ Login, Facetime Communications, Just On, Knowledge Navigators, Privaseek, Verisign and White Pine. In addition to participating at the digitalme unveiling, the companies announced their intentions to work with Novell in providing technologies and services aimed at improving the Internet experience.

To jumpstart development of digitalme-related services, Novell also announced plans to make available the digitalme source code and Application Programming Interfaces (API). They will be offered on the digitalme site set later this month as part of an ongoing effort to address the most urgent needs of a new breed of Internet and networking developers.

"We will move aggressively to identify and build relationships with Internet innovators focused on what we see as the next wave — 'In-the-Net' services delivered through server-based computing," Adams explained. "We are responding to customer demands in the market for 'zero-byte clients' or applications and services that do not need to be downloaded. Responding to that trend is a new breed of companies and customers who see the value in unlocking applications from machines and making them available on any variety of machines anywhere through a browser on the Internet."

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 digitalme, please call 1-877-meBusiness. 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. For information on the Year 2000 status of Novell products, please access Novell's Year 2000 Web site at http://www.novell.com/year2000 or contact Novell's Customer Response Center at year2000@novell.com.

Novell, NDS and Novell Directory Services are registered trademarks, and digitalme is a trademark of Novell, Inc. in the United States and other countries. All third-party trademarks are the property of their respective owners.

Press Contacts:
Corporate PR:
Pamela Mahoney
Novell, Inc.
Phone: 408-967-7195
Internet: pmahoney@novell.com

Business/Consumer PR:
Tina Murphy
Brodeur Porter Novelli
Phone: 617-587-2825
Internet: tmurphy@brodeur.com

Technology PR:
Carrie Merritt
Cunningham Communication
Phone: 650-858-3788
Internet: cmerritt@ccipr.com