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Microsoft Corp. and Novell Inc. are announcing an incremental investment in their relationship to meet accelerating customer demand for their business model solution,
which is designed to build a bridge between open source and proprietary
software to deliver interoperability and intellectual property (IP) peace
of mind for organizations operating mixed-source IT environments.

The investment focuses on enhanced programs from Novell to provide
tools, support, training and resources for customers seeking an
enterprise-class Linux* platform and specifically, the optimal
interoperability solution between Microsoft Windows Server and SUSE(R)
Linux Enterprise Server from Novell(R). It also includes Microsoft's
commitment to purchase up to $100 million in certificates that those
customers can redeem for expanded support from Novell that includes SUSE
Linux Enterprise Server support and support for moving toward an
enterprise-class Linux platform. The investments will take effect Nov. 1,
2008, and between now and then Microsoft and Novell will solicit customer
input and identify aspects of the support programs that will be most useful
to organizations running mixed-source environments.

Customer response to the Microsoft-Novell model has been significant
since it began in November 2006. As part of the initial five-year
partnership agreement, Microsoft purchased $240 million of Novell
certificates to sell to customers. Within 18 months, Novell invoiced more
than $157 million in certificate revenues, or 65 percent of the original
allotment. Customers who have already taken advantage of this opportunity
to seamlessly run both Windows Server and SUSE Linux Enterprise Server
include Wal-Mart Stores Inc., HSBC Holdings, Renault, Southwest Airlines
Co., BMW and many other leading companies around the world.

"The collaboration between Microsoft and Novell has been built on our
desire to meet our customers' real-life IT requirements as well as give our
partners greater breadth in their solution offerings," said Kevin Turner,
chief operating officer at Microsoft. "Some customers have told us they
want to be able to run Windows Server and Linux together seamlessly, but in
many cases, they need help with the transition to SUSE Linux Enterprise
Server from other Linux environments. Our increased investment in the
relationship with Novell is intended to give these customers and partners
the best possible Windows-Linux interoperability solution, while also
extending their existing Windows Server investments and helping to give
them IP peace of mind."

"Cross-platform interoperability is something that we all want and need
to achieve. But it's difficult to accomplish this," said Ulrich Koch, Head
of License Management T-Systems Enterprise Services. "The pragmatic
approach Microsoft and Novell are taking to address this complex challenge,
including IP assurance, through engineering as well as offering tangible
support and training programs, will make it easier for us to develop a path
forward."

"The strategic partnership between our companies continues to attract
customers by building a bridge between proprietary and open source
software," said Ron Hovsepian, president and CEO of Novell. "The
interoperability delivered by Microsoft and Novell has resulted in very
high demand for SUSE Linux Enterprise from customers and channel partners,
further validating Novell's Linux strategy."

With today's announcement of the enhanced relationship, customers will
continue to realize unprecedented choice and flexibility of running both
SUSE Linux Enterprise Server and Windows Server with the confidence that
both operating systems will work together seamlessly in the datacenter.
Novell and Microsoft, through their joint interoperability lab in
Cambridge, Mass., and other initiatives, will continue their close
technical collaboration on a wide variety of solutions including
virtualization, systems management, directory and identity federation,
document format compatibility, accessibility technology, and the Moonlight
multimedia framework.

More information about the Microsoft and Novell agreement can be found
at http://www.moreinterop.com.

Novell, Inc. (Nasdaq: NOVL) delivers the best engineered, most
interoperable Linux platform and a portfolio of integrated IT management
software that helps customers around the world reduce cost, complexity and
risk. With our infrastructure software and ecosystem of partnerships,
Novell harmoniously integrates mixed IT environments, allowing people and
technology to work as one. For more information, visit
http://www.novell.com.

Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software, services and solutions that help people and businesses realize
their full potential.