Novell Awarded Over $26 Million in Infringement Case

Award is Largest of Its Kind Ever Granted

PROVO, Utah, Nov. 2, 1998 /PRNewswire/ -- Novell, Inc. announced that it has been awarded $25.9 million plus attorneys fees and costs in its case against Network Trade Center (NTC) of Sandy, Utah and its owner Mark Bondiett.

Novell originally filed the complaint in July of 1995 in the U.S. District Court for the District of Utah, Central Division alleging that NTC had acquired and sold Novell NetWare upgrade products through misrepresentation and in turn sold those upgrades to misinformed customers. The Court ruled that NTC had used Novell's trademarks without Novell's authorization, engaged in deceptive and misleading practices, and that NTC's practices had harmed and damaged Novell. The Special Master appointed by the court found that NTC advertised and sold upgraded software as original.

Novell became aware of the problem after receiving numerous complaints on its piracy hotline (800-PIRATES or 800-747-2837) from customers and resellers complaining of NTC's practices.

"We are extremely pleased by the Court's ruling," stated David Bradford, Novell senior vice president and general counsel. "Our sales channel and our customers have brought this to our attention and we have acted in the best manner to protect them. We have proven and will continue to prove that Novell is a company that listens to its customers. We will also continue to pursue any abuse of our sales programs to protect our sales channel."

Novell investigated over 1200 cases worldwide in fiscal 1997. 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. Novell's piracy hotline receives an average of 40 calls per week. Call 800-PIRATES (800-747-2837) or send e-mail to pirates@novell.com.

About Novell

Novell, Inc. is the world's largest network software company and the leader in directory-enabled network solutions. Novell solutions make networks more manageable and secure and reduce the total cost of ownership for organizations of every kind and size. Novell's worldwide channel, 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.

NOTE:  Novell and NetWare are trademarks of Novell, Inc.