Novell and Corel Announce Definitive Agreements

OREM, UT -- OTTAWA, CANADA -- JANUARY 31, 1996 -- Novell, Inc. and Corel
Corporation today announced a definitive agreement for Corel to acquire
the PerfectOffice application suite, WordPerfect word processing
applications, QuattroPro spreadsheet and related software from Novell in
exchange for 9.95 million shares of Corel common stock and $10.75 million
in cash. Concurrently, Corel will license GroupWise client software, Envoy
electronic publishing software and other technologies from Novell for a
minimum royalty obligation of $70 million over the next five years.

The common stock Novell will receive represents approximately 20 percent of
Corel's current outstanding shares. Novell is also entitled to nominate a
candidate for Corel's board of directors. The companies expect the
agreements to close within thirty days, conditional on U.S. Government
approval under the Hart-Scott-Rodino Act. Shareholder approval is not
required by either company.

Novell anticipates that after costs and other charges, the Corel agreement
will result in a slight one-time extraordinary gain in Novell's second
fiscal quarter ending April 27, 1996. The software being sold and licensed
to Corel is a portion of that acquired in Novell's $855 million
pooling-of-interests merger with WordPerfect Corp. in June 1994. Novell
retains ownership of GroupWise, Envoy and other technologies acquired in
that merger.

Michael Cowpland, CEO of Corel, said, "We are very enthusiastic about the
fit of these products within Corel's business. We believe they will
strategically extend the solution value that Corel brings customers
worldwide. Corel has earned the loyalty and support of millions of users
and expects to attract the same level from current users of WordPerfect
and PerfectOffice. Corel plans to release versions of these applications
for Windows 95 and Windows NT this spring, continuing to deliver the
product excellence that both WordPerfect and Corel customers have come to
expect."

Novell chairman and CEO Robert J. Frankenberg said, "Corel's success in
developing and marketing best-of-breed PC application software products
worldwide makes them an ideal partner to advance these application
products in the future. For end-user customers, OEM and channel partners,
Corel and Novell can ensure a smooth transition in areas of support,
education, developer and licensing programs."

Corel will lease facilities from Novell and hire certain Novell employees
engaged in the continued development and support of application products.

Corel is recognized internationally as an award-winning developer of PC
graphics and multimedia software. CorelDRAW, Corel's industry- leading
graphics software, is available in over 17 languages. After its purchase
of the Novell application software, Corel becomes the second largest
independent vendor worldwide of personal productivity applications. Corel
Corporation is traded on the Toronto Stock Exchange (symbol: COS) and the
NASDAQ, National Market System (symbol: COSFF).

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.

Novell Contact:
Melanie King
(408) 577-6842

Corel PR Contact:
Carrie Bendza
(613) 728-0826 ext.1524

Corel IR Contact:
John Hladkowicz
(613) 728-0826 ext.1194
 
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