PROVO, Utah - April 9, 2003 - Novell today announced that it has settled its piracy claims against Kamran Heidarian of San Dimas, California, and his related companies, including Priority Micro, Inc. and PMI Enterprises.

Novell initially brought a suit against Heidarian in 1997 for copyright and trademark infringement. In that lawsuit, filed in the U.S. District Court for the Central District of California, Novell alleged that Heidarian distributed Novell upgrade product to customers who didn't qualify for upgrades, contributed to the unauthorized acquisition of upgrade product, and distributed unbundled OEM software when he was not authorized to do so. Novell settled its claims against Heidarian and the settlement included a permanent injunction restricting his future dealings in Novell products.

Novell later learned that Heidarian was once again distributing unauthorized Novell® products. Novell then petitioned the Court with a claim that Heidarian had violated the terms of the permanent injunction which contained a provision requiring Heidarian to pay liquidated damages to Novell for each violation of the injunction. After the Court ruled that the liquidated damages provision was fully enforceable, the parties settled Novell's claims for a payment to Novell of $325,000.

"This all could have been avoided, but obviously the defendant didn't take the first settlement agreement too seriously, and it cost him in the end," stated Ed Morin, Novell's anti-piracy manager.

Novell's Anti-Piracy Group investigates complaints of software piracy in the marketplace and on the Internet, including the illegal use and distribution of Novell's copyrighted software and other materials, as well as the unauthorized use of Novell's trademarks. The Anti-Piracy Group is committed to ensuring that Novell customers receive legitimate, licensed software and that Novell partners receive the appropriate revenues for the distribution of Novell software. To report instances of software piracy or for related inquiries, please visit the anti-piracy web site at http://www.novell.com/piracy or email pirates@novell.com. The Anti-Piracy Group also maintains a toll-free hotline at 1-800 PIRATES (800-747-2837).

Press contacts:
Bruce Lowry
Novell, Inc.
Phone: (415) 591-6523
E-mail: blowry@novell.com

Anti-Piracy Group:
Steve Kirk
Novell, Inc
Phone: (801) 861-8801
E-mail: skirk@novell.com