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MICRODYNE AND NOVELL SIGN TECHNOLOGY LICENSE AGREEMENT FOR NETWORK INTERFACE CARDS

 MICRODYNE AND NOVELL SIGN TECHNOLOGY LICENSE AGREEMENT
 FOR NETWORK INTERFACE CARDS
 ALEXANDRIA, Va., Aug. 10 /PRNewswire/ -- Microdyne Corporation (NASDAQ: MCDY) and Novell, Inc. (NASDAQ: NOVL) today said they have signed a contract under which Microdyne will develop and market a new generation of network connectivity cards certified through Novell labs to be optimized for NetWare. Under the agreement, Microdyne will offer six circuit cards that allow computers to link to NetWare-based local area networks with various types of cabling. The agreement takes effect immediately.
 "Novell is pleased to extend its relationship with Microdyne through this new agreement," said Mary Burnside, executive vice president of Novell's Corporate Services Group. "We believe working with Microdyne will allow us to better serve our customers."
 "Our goal is to help Novell grow the networking market by providing a line of technologically advanced products that drive down the cost of networking," said Philip T. Cunningham, chairman and president of Microdyne. "This agreement will help both companies bring new technologies to market more quickly. We're extremely pleased that Novell has chosen to expand its relationship with us."
 The circuit cards covered under the agreement, known in the industry as LAN interface controller cards, are typically sold by electronics distributors for use by businesses, government agencies and other organizations. The cards provide the link between desktop computers and local area networks. Microdyne has been licensed to manufacture and distribute certain boards in packaging that bears Novell's distinctive logotype and color.
 Cunningham declined to forecast revenue and earnings implications of the agreement. "The contract has the potential to fundamentally alter Microdyne's business. It will have a favorable impact on both revenue and earnings, but it is impossible to quantify either one at present." Products covered by the agreement
 The agreement includes two of the industry's most widely sold network interface controller cards. The NE1000- and NE2000-series are datalink connectivity cards that permit a computer to communicate with an Ethernet network. The worldwide market for this class of products is approximately $970 million per year according to International Data Corp.
 Initially, Microdyne will manufacture and distribute the current NE1000 and NE2000. Microdyne is developing an advanced- generation of these products, some of which are currently in pre- production test and will be introduced later this year.
 "We have an opportunity to help shape the future of networking," Cunningham said. "Our objective is to grow the market by offering the highest quality product at the lowest possible price to end users, and by maintaining a consistently high level of customer service."
 In addition to the NE1000 and NE2000 datalink controller cards, Microdyne will manufacture and distribute the NE2000T, NE2100, NE3200 and NE1500T. These cards allow computers to link to NetWare-based local area networks using a variety of Ethernet cabling systems. An eight-year relationship between Microdyne and Novell
 Microdyne and Novell have established a series of contractual relationships over an eight-year period. Federal Technology Corporation, a predecessor company to Microdyne, installed Novell hardware and software as early as 1984. As Novell's emphasis shifted toward software, Federal Technology and later Microdyne was licensed to manufacture and maintain hardware products previously sold by Novell.
 During the past year, Microdyne and Novell have signed agreements covering a variety of products. In May 1992, Microdyne introduced the NetWare Access Server and NetWare Asynchronous Communications Server by Microdyne. These products provide easy-to-use solutions for Novell remote-access-communications software products.
 Headquartered in Alexandria, Va., Microdyne Corporation develops, manufactures and markets data communications and network connectivity products. The company also provides systems integration and manufactures support services, and manufactures and sells telemetry products.
 Microdyne Corporation is listed on NASDAQ's National Market System under the symbol MCDY. Novell Inc. is listed on NASDAQ's National Market System under the symbol NOVL. NetWare is a registered trademark of Novell Inc.
 -0- 8/10/92 R
 /CONTACT: Neal Sanders of Microdyne Corporation, 703-739-0500, or
 Patrick Riley/Chad Sanborn of Miller Communications, 617-536-0470
 (MCDY NOVL) CO: Microdyne Corporation; Novell, Inc. ST: Virginia IN: CPR SU:


TM -- NE007R -- 8476 08/10/92 11:19 EDT
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Date:Aug 10, 1992
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