Novell Aligns Organization To Capture New Market Opportunities

Novell, Inc. today announced changes aimed at moving the company from a product to a market-driven organization and sharpening the company's focus on new market opportunities. Effective immediately, Novell will consist of four business groups, each of which will have its own strategic focus and go-to-market strategy, including target markets and channels.

"Our customers are at different stages in deploying their Internet strategies, and we recognize the need to focus our efforts around making the Net work for them regardless of where they are in that implementation," said Eric Schmidt, chairman and chief executive officer. "We're making these changes to align our business so that we can win in a dynamic and demanding marketplace. Ultimately, these actions will strengthen Novell's ability to deliver Net services software to customers including small to large enterprises, service providers and dotcoms."

Under the leadership of Schmidt and Stewart Nelson, chief operating officer, the four business units: Net Management, Net Directory, Net Content and Novell Customer Services will provide market-driven technologies and services best suited to compete in their respective categories.

• Net Management led by Craig Miller, vice president and general manager, this group will focus on providing solutions for existing and new enterprise customers and growing business around established product lines including NetWare, GroupWise, BorderManager and ZENworks. The large enterprise market will be reached through a direct sales model while the small and medium enterprise markets will be reached through an indirect channel. Miller most recently served as vice president of development for operating systems and partner solutions in the Novell Products Group.



• Net Directory led by Paul Smart, vice president and general manager, this group will focus on achieving directory ubiquity, with the goal being to provide directory "dialtone" for the Net. The group will develop and deliver customer-driven software built on NDS eDirectory such as DirXML, Single Sign On and eGuide. Markets will include both large enterprise customers and the dotcoms. The large enterprise market will be reached through a direct sales model, consulting services and consulting and systems integration partners, while the dotcoms will be reached through a new and rapidly growing channel of eSystems integrators. Smart most recently served as vice president of NDS Engineering



• Net Content led by Simon Khalaf, vice president and general manager, this group will focus on content services including Novell's Internet Caching System (ICS) and other content distribution technologies currently under development. This group will target high-end web hosters and other service providers, with the ultimate consumers being dotcom and eBusiness enterprises. Khalaf was the CEO and founder of JustOn, acquired by Novell in January of this year.



• Novell Customer Services led by Sheri Anderson, senior vice president and general manager, this group will comprise consulting, education and technical support services that maximize the business value of Novell's Net Management, Net Directory and Net Content groups. Novell Customer Services provide the added value that enables customers to move at Internet speed, adapt new technologies, and drive business strategies for success in the Net economy. Formerly Novell's senior vice president and CIO, Anderson is well versed in the business and technology challenges customers face as they roll out their Net strategies.

Additional management changes, effective immediately, include the appointments of:

• Dave Shirk to chief technology officer, reporting to Stewart Nelson. The CTO office will be responsible for Novell's product strategy and direction, managing Novell's product and services plan of record, high-level architecture and standards body coordination. Shirk served most recently as Novell's senior vice president, Product Management.
• Rich Nortz to replace Nicholas A. Tiliacos as senior vice president, Worldwide Sales. Tiliacos who joined the company May 10 has resigned for personal reasons. Most recently, Nortz served as senior vice president Novell Customer Services.
• Ken Anderson to chief information officer reporting to Dennis Raney, chief financial officer. Previously, Anderson was vice president of Global Infrastructure for Novell's Information Systems department.

About Novell

Novell, Inc. (NASDAQ:NOVL), is a leading provider of Net services software that delivers services to secure and power all types of networks the Internet, intranets, and extranets; wired to wireless; corporate and public across leading operating systems. Novell's Net services software provides the foundation for one Net a single global network that supports new applications and forms of business. Worldwide channel, consulting, education and technical support programs, along with strategic alliances, combine Novell Net services software with third-party products and services to form complete Net solutions.

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 www.novell.com. Press may access Novell announcements and company information on the World Wide Web at www.novell.com/pressroom. In addition, detailed comparisons between Novell products and competitive offerings from other vendors are available on the Web at www.novell.com/advantage.