British Telecommunications plc Selects Novell for Enterprise-wide Directory Enablement

• UK telecommunications provider strengthens its technology partner strategy with Novell
• BT embraces Novell as an integral business partner to deploy and support directory-enabled services
• Multi-million dollar agreement with BT to include network upgrades to NetWare 5.1

Novell, Inc., the leading provider of Net services software, today announced its largest European contract to date after signing an enterprise-wide agreement with British Telecommunications plc (BT) that establishes Novell as a strategic supplier of directory-enabled technology for BT worldwide. The first phase of this multi-million dollar (US$) agreement will include upgrading BT's network to the latest version of Novell's NetWare® 5.1 operating system and extending Novell's industry-leading directory services, NDS® eDirectory, across their enterprise. In a move to strengthen its partner strategy, BT has embraced Novell as an integral business partner to deploy and support directory-enabled services throughout the organisation.

Novell and BT have entered into a new licence agreement including provision for storage and print solutions and cross-platform directory integration services. As part of the agreement, all upgrades of Novell's Net services software will be supplied and supported by dedicated Novell engineering staff. The global agreement also covers any partner company, in which BT has a 50 percent or greater stake.

Andy Roxburgh, Computer Asset Manager at BT commented, "We are delighted that Novell is embracing the integral partner strategy at BT. This is an innovative contract and clearly demonstrates Novell's commitment to meet BT's specific needs. The contract extends BT's long term investment in directory-enabled technology and will allow us to improve efficiency and provide enhanced services to our customers on an enterprise-wide scale."

Ashok Patel, Strategy and Design Manager at BT said, "In an organisation as large as BT, it is essential that we have scalable systems managed from a single location across a variety of platforms. Further deployment of directory-enabled technology will allow us to improve service, reduce cost and reduce time to market through process automation. In addition, we hope to leverage the directory for revenue earning opportunities. We recognise Novell's leadership in this area and are pleased to extend the use of their technology in this space."

Dr. Eric Schmidt, Chairman of the Board and Chief Executive Officer at Novell said, "This new licence agreement emphasises Novell's lead in the Net services software market. The announcement is clear demonstration of Novell's one Net approach that delivers highly scalable, cross-platform Net services that simplify and secure networks and accelerate the move to eSolutions. It will provide BT with a platform from which to build on further with Novell® products in the near future."

Initial Net services licenses from Novell to BT were announced in November 1999.

About BT
British Telecommunications plc is one of the world's leading providers of telecommunications services and one of the largest private sector companies in Europe. Its principal activities include local, long distance and international telecommunications services, mobile communications, Internet services and IT solutions. In the UK BT serves 28 million exchange lines and seven million mobile customers. International direct-dialled telephone service is available to more than 200 countries and other overseas territories covering 99 per cent of the world's 800 million telephones.

BT is expanding its presence overseas rapidly and has operations in more than 30 countries worldwide, with ventures in the Republic of Ireland, France, Switzerland, Spain, Germany, Italy, the Netherlands, Sweden, New Zealand, Japan, Singapore, Malaysia, Korea, Latin America and India.

BT and AT&T have also created Concert, the leading global telecommunications company serving multi-national business customers, international carriers and Internet service providers worldwide. Concert provides customers with communications services on an unprecedented scale, scope and quality, with the industry's broadest portfolio of voice, data and Internet services. Concert's frame relay network reaches every major city in the United States and the United Kingdom, and extends to an additional 170 cities in 47 countries. Its global public network reaches directly 237 countries more than any other existing network.

About Novell
Novell, Inc. (NASDAQ:NOVL), is the 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 Telephone Response Centre at 01344 724100,or visit Novell's Web site at http://www.novell.com/uk. Press may access Novell announcements and company information on the World Wide Web at http://www.novell.com/pressroom. In addition, detailed comparisons between Novell products and competitive offerings from other vendors are available on the Web at http://www.novell.com/competitive.

Novell, NetWare and NDS are registered trademarks and eDirectory is a trademark of Novell, Inc. in the United States and other countries. All third party trademarks are the property of their respective owners.