Press Release

Novell and Microsoft Win Ruling in Lawsuit With the Final Frontier BBS

OREM, Utah -- February 24, 1997 -- Novell, Inc. and Microsoft announced they have received a crucial ruling in their lawsuit against The Final Frontier Bulletin Board System (BBS). The United States Bankruptcy Court for the District of Arizona ruled that the system operator for The Final Frontier is responsible for damages to the software companies.

Microsoft and Novell first became aware that The Final Frontier was dealing in illegal software when investigators were able to log onto the board using an alias and download the illegal software. Further investigation revealed that The Final Frontier was a member of two groups specializing in illegal software. The two groups, Nokturnal Trading Alliance (NTA) and Rise in Superior Couriering (RISC) are well known in the BBS world.

Investigators from Novell and Microsoft were able to verify 146 improper downloads in a very short period of time. The Bankruptcy Court awarded $73,000.00 to Microsoft and Novell based upon the number of illegal downloads of each company's software. In its ruling the court stated, "The economic reality is that any amount awarded is the functional equivalent of an economic death sentence to this debtor.....if the debtor's financial circumstances were better or the violations had been for profit, the award would have been larger".

Harrison Colter, attorney for Novell, stated " The judges words 'economic death sentence' send a very powerful message. I hope others get the message so that they do not suffer the same fate for their illegal activities."

"Although we are competitors in the marketplace, the damaging effects of software piracy greatly harm both of our companies and ultimately the entire software industry and its consumers," commented Jim Lowe, Microsoft Corporate Attorney. "Neither Microsoft nor Novell will stand by while bulletin boards illegally offer our products to download."

Novell has established an anti-piracy group and telephone hot line for reporting illegal use of Novell software or making related inquiries. Call 1-800-PIRATES (800-747-2837) or send e-mail to pirates@novell.com.

Consumers with questions about the legitimacy of Microsoft products should call the Microsoft Anti-piracy Hotline at 1-800-RU-LEGIT or e-mail piracy@microsoft.com. To receive more information about software piracy, call the Business Software Alliance (BSA) Anti-piracy Hotline at 1-888-NO-PIRACY or e-mail software@bsa.org.

Founded in 1983, Novell (NASDAQ: NOVL) is the world's leading provider of network software. The company offers a wide range of network solutions for distributed network, Internet, intranet and small- business markets. Novell education and technical support programs are the most comprehensive in the network computing industry. Information about Novell's complete range of products and services can be accessed on the World Wide Web at http://www.novell.com.

Founded in 1975, Microsoft (NASDAQ: "MSFT") is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with a mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

Novell is a trademark of Novell, Inc.
Microsoft is a trademark of Microsoft, Inc.

Microsoft Contact:
Karen Porter
Phone: (206) 936-5992
Fax (206) 936-7412
Internet: karenpor@microsoft.com

Novell Contact:
Steve Kirk
Phone: (801) 228-8801
Fax (801) 228-8875
Internet: skirk@novell.com