Novell Unifies Product Organization to Reflect Network Focus

Consolidating Three Product Groups Into Single Unit

OREM, Utah -- January 11, 1996 -- Novell, Inc. today announced that it is
reorganizing its product organization in concert with its recent decisions
to exit the UNIX application server and personal productivity applications
businesses and focus exclusively on its market-leading network software
products. The new Novell Products Group will consolidate the Systems,
Applications, and Information Access and Management Groups into a single
organization that will better coordinate product development and marketing
to deliver more value to Novell customers.

Steven Markman, formerly executive vice president, Information Access and
Management Group, heads the new product organization as executive vice
president, Novell Products. Reporting to Markman are Richard King,
currently executive vice president and general manager of the Systems
Group; Jeffrey Waxman, currently executive vice president and general
manager of the Applications Group; and other executives to be appointed
later this month.

The unified organization will allow Novell to enhance interoperability
among its broad range of network software products, which span from
today's private business networks to the Internet. Novell believes rapid
change in networks is leading to a managed Internet, or Smart Global
Network, that will interconnect today's private business networks and
Internet solutions as a single information resource for business and
consumers.

"The business choices we've made over the last year have reestablished
Novell's single focus to support our customer's network solutions." said
Robert J. Frankenberg, Novell Chairman and CEO. "Now is the time to mirror
this focus with a unified product organization that will fully empower
cross-functional programs and product teams, speed issue resolution,
improve decision making, and leverage Novell's strengths."

Novell will begin the reorganization in parallel with its sale of the
personal productivity Business Applications Division, which it expects to
announce by the end of January. Novell completed the sale of its UnixWare
application server business to The Santa Cruz Operation, Inc. in December
1995.

Novell, Inc. (NASDAQ: NOVL), is the world's leading networking software
provider. Novell software provides the infrastructure for a networked
world, enabling our customers to connect with other people and the
information they need, anytime and anyplace. Novell partners with other
technology and market leaders to help customers make networks a part of
their everyday lives.
 
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