Compaq Announces Novell Directory Services as Strategic Cross-Platform Directory for Compaq NonStop Solutions; Novell to Deliver NDS on Compaq Tru64 UNIX AlphaServers.

HOUSTON--(BUSINESS WIRE)--Sept. 7, 1999--

Expanding on their 14-year relationship, Compaq Computer Corporation (NYSE:CPQ) and Novell, Inc. (NASDAQ:NOVL) today announced a new strategic agreement that makes Novell Directory Services (NDS) an integral component of Compaq NonStop(tm) solutions, Compaq's initiative to help its customers compete in a 24-hour global online business environment. With this agreement, enterprise customers will now be able to strengthen their infrastructure and Internet security.

Novell will port its industry-leading directory service, NDS, to Compaq Tru64 UNIX operating system. Compaq will also further optimize its ProLiant servers for NDS. In addition, customers will now be able to enhance the performance of their NDS security with Compaq's upcoming AXL200 Accelerator PCI card.

The combination of these leading technology solutions will allow enterprise customers to reap several benefits from this agreement:

-- Management of heterogeneous networks on a customer's choice of Compaq ProLiant running Novell NetWare, Microsoft NT, LINUX and now Compaq Tru64 UNIX on AlphaServers

-- Improved security without reduced performance

-- Deployment of robust directories on Compaq Tru64 UNIX

Porting NDS to Compaq Tru64 UNIX

In order to give enterprise customers the freedom to choose the best solutions to meet their needs, Novell has committed to deliver the first native 64-bit port of NDS to Compaq Tru64 UNIX. NDS for Compaq Tru64 UNIX is expected to be available in the first half of 2000. The combination of Novell's highly scalable Internet directory, Compaq AlphaServer's high performance and Compaq Tru64 UNIX high availability will provide customers of Compaq NonStop(tm) solutions with improved network scalability, stability and flexibility. NDS on Compaq Tru64 UNIX will significantly enhance Compaq's industry leading interoperability capabilities, now encompassing Novell NetWare, Microsoft Windows 2000, and LINUX.

"One of the most significant challenges facing our enterprise customers today is the ability to effectively manage large, complex network environments while expanding these infrastructures to become global ebusiness solutions," said Enrico Pesatori, Compaq Senior Vice President and Group General Manager, Enterprise Solutions and Services Group. "Integrating NDS across Compaq NonStop(tm) solutions will give our customers the ability to centrally manage highly secure, multi-platform networks without sacrificing performance or scalability. With over half a million Compaq servers running NDS today, we know more about Novell than any other vendor."

Managing Heterogeneous Networks

Customers are now able to manage network users and assets in heterogeneous environments on a choice of Compaq ProLiant and now AlphaServers, significantly reducing network management costs.

"NDS has been adopted by our company as the corporate strategic direction," said Alan Goodale, Strategic Directory Planner for the Bank of Montreal. "We have to manage our services end-to-end, so using NDS to manage all our servers - Compaq ProLiant and AlphaServer - is a great move in the right direction."

Regardless of platform, customers will have a holistic view of their network assets and users. With this announcement, Compaq becomes the clear leader in integrating desktops, workstations and servers with NDS.

"Compaq's decision to make NDS a key component of its NonStop(tm) solutions strategy further validates NDS as the most appropriate cross-platform directory service for enterprise, Internet and electronic commerce," said Dr. Eric Schmidt, Novell Chairman and Chief Executive Officer. "With the port of NDS to Compaq Tru64 UNIX, we will allow enterprise customers to easily manage their mixed-platform networks."

Security without Sacrificing Performance

By re-directing NDS security functions with Compaq's forthcoming AXL200 Accelerator PCI Card, customers will be able to take advantage of the security features in NDS without sacrificing network performance. NDS relies extensively on cryptography to allow administrators to centrally manage policies and control access across the network. Specialized Compaq PCI hardware offloads security processing and minimizes CPU utilization to increase overall system performance dramatically. The new accelerator PCI hardware was designed by Compaq's award-winning Atalla Security Products subsidiary.

"Through their directory partnership, Compaq and Novell are leveraging their historically strong relationship to create directory-enabled solutions for customers," said Jamie Lewis, president of The Burton Group. "By focusing first on directory-enabled management of clients and servers and then on e-business initiatives that extend networks to the Internet, Compaq and Novell can leverage their respective product lines and services expertise to help customers address the challenges faced in today's rapidly changing network environment."

Delivering Service and Support

Novell Consulting Services and Compaq Professional Services will team to provide solutions for complex enterprise environments. In addition, the two companies will continue to partner with authorized channel service providers to offer customers the highest levels of support for the deployment of directory solutions.

For more information about this announcement, please visit the Compaq Web site at: www.compaq.com/partners/novell/announcements/index.html

Novell Background

Novell, Inc. (NASDAQ:NOVL) is the world's leading provider of directory-enabled networking software. Novell solutions give businesses total control of their private networks and the Internet, simplifying the management of user access and identity. Novell's worldwide channel, consulting, developer, education and technical support programs are the most extensive in the network computing industry. 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 http://www.novell.com. 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/advantage. For information on the Year 2000 status of Novell products, please access Novell's Year 2000 Web site at http://www.novell.com/year2000 or contact Novell's Customer Response Center at

[e-mail].

Compaq Background

Compaq Computer Corporation (NYSE:CPQ), a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage products, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.

Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at http://www.compaq.com, or by calling 1-800-OK-COMPAQ. Product information and reseller locations are available by calling 1-800-345-1518.

Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. Novell, NetWare and Novell Directory Services, are registered trademarks and NDS is a trademark of Novell, Inc. in the United States and other countries. All third-party trademarks are the property of their respective owners.