FOR IMMEDIATE RELEASE

March 3, 2011

Novell Reports Financial Results for First Fiscal Quarter 2011

WALTHAM, Mass. – March 3, 2011 - Novell, Inc. (NASDAQ: NOVL) today announced financial results for its first fiscal quarter ended January 31, 2011. For the quarter, Novell reported net revenue of $191 million. This compares to net revenue of $202 million for the first fiscal quarter of 2010. GAAP income from operations for the first fiscal quarter of 2011 was $12 million. This compares to GAAP income from operations of $21 million for the first fiscal quarter of 2010. GAAP net loss in the first fiscal quarter of 2011 was $18 million, or a $0.05 loss per share, which included a $31 million net tax charge in connection with the planned repatriation of a majority of non-U.S. cash. This compares to GAAP net income of $20 million, or $0.06 per share, for the first fiscal quarter of 2010.  Foreign currency exchange rates negatively impacted revenue and positively impacted operating expenses by $1 million and did not materially impact income from operations year-over-year.

On a non-GAAP basis, income from operations for the first fiscal quarter of 2011 was $31 million. This compares to non-GAAP income from operations of $33 million in the same period last year. Non-GAAP net income for the first fiscal quarter of 2011 was $26 million, or $0.07 per share. This compares to non-GAAP net income of $25 million, or $0.07 per share, for the first fiscal quarter of 2010. A reconciliation of GAAP to non-GAAP results is provided in the financial schedules as part of this press release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Cash, cash equivalents and short-term investments were $1.1 billion at January 31, 2011, consistent with last quarter. Days sales outstanding in accounts receivable was 42 days at the end of the first fiscal quarter of 2011, down from 50 days at the end of the year-ago quarter. Total deferred revenue was $593 million at the end of the first fiscal quarter of 2011, down from $646 million at the end of the year-ago quarter. For the first fiscal quarter of 2011, cash flow from operations was $9 million. This compares to cash flow from operations of $5 million for the first fiscal quarter of 2010.

Further details on Novell's reported results are included in the financial schedules that are a part of this release.

Page 2 of 10

Non-GAAP Financial Measures

We supplement our consolidated unaudited condensed financial statements presented in accordance with GAAP with certain non-GAAP financial measures. These non-GAAP measures include adjusted income from operations, adjusted operating margin, adjusted net income and adjusted net income per share. We provide non-GAAP financial measures to enhance an overall understanding of our current financial performance and prospects for the future and to enable investors to evaluate our performance in the same way that management does. Management uses these same non-GAAP financial measures to evaluate performance, allocate resources, and determine compensation. The non-GAAP financial measures do not replace the presentation of our GAAP financial results, but they eliminate expenses and gains that are excluded from most analysts' consensus estimates, that are unusual, and/or that arise outside of the ordinary course of business, such as, but not limited to, those related to stock-based compensation, acquisition-related intangible asset amortization, restructuring, asset impairments, litigation judgments and settlements, strategic alternatives review, the sale of business operations, long-term investments, property, plant and equipment, and unusual and discrete income tax effects.

Legal Notice Regarding Forward-Looking Statements

This press release may include statements that are not historical in nature and that may be characterized as “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to future financial and operating results, targets, and prospects; future opportunities; market leadership and positioning; short-term and long-term trends; the macroeconomic environment; customer priorities; timing of realization of projections; functionality, characteristics, quality and performance capabilities of Novell's products and technology; and results achievable and benefits attainable through deployment of Novell's products and provision of services. Forward-looking statements forecasting growth in financial metrics are predicated on assumptions regarding improvements in the overall economy and the markets served by Novell and in which Novell operates, the timing of which are impossible to accurately predict. Actual results may differ materially from the results discussed in or implied by such forward-looking statements, which are based upon information that is currently available to us and/or management’s current expectations and speak only as of the date hereof. We are subject to a number of risks, including, among others, the risk that our merger with Attachmate Corporation may be delayed or may not be consummated, the risk that the merger agreement may be terminated in circumstances that require Novell to pay Attachmate a termination fee of $60 million; risks related to the diversion of mangement's attention from Novell's ongoing business operations; risks regarding the failure of Attachmate to obtain the necessary financing to complete the merger; the effect of the announcement of the merger and the patent sale to CPTN Holdings LLC on Novell's business relationships (including, without limitation, partners and customers), operating results and business generally; and risks related to obtaining the requisite consents to the merger or the patent sale, including, without limitation, the timing (including possible delays) and receipt of regulatory approvals from various governmental entities (including any conditions, limitations or restrictions placed on these approvals) and the risk that one or more governmental entities may deny approval, as well as risks related to indirect sales, growth rates of our business units, renewal of SUSE® Linux Enterprise Server subscriptions with customers who have received certificates from Microsoft, decline rates of Open Enterprise Server and NetWare® revenue, development of products and services, the intelligent workload management market, software vulnerabilities, delays in product releases, reliance on open source software, adequacy of renewal rates, uncertain economic conditions, competition, rapid technological changes, failure to expand brand awareness, adequacy of technical support, pricing pressures, system failures, integration of acquisitions, industry consolidation, challenges resulting from a global business, foreign research and development operations, loss of key employees, intellectual property infringement, litigation matters, unpredictable financial results, impairments, the timing of revenue recognition, our investments and effective use of our cash.

Page 3 of 10

A detailed discussion of these and other factors that could affect our results is included in our SEC filings, including, but not limited to, our Annual Report on Form 10-K for the Fiscal Year Ended October 31, 2010 filed with the SEC on December 13, 2010, which may be obtained by calling (800) 317- 3195, or at our Investor Relations web page at: www.novell.com/company/ir.

We expressly disclaim any obligation, except as required by law, or undertaking to update or revise any forward-looking statements contained in this press release to reflect any change of expectations with regard thereto or to reflect any change in events, conditions, or circumstances on which any such forward-looking statement is based, in whole or in part.

About Novell

Novell, Inc. (NASDAQ: NOVL), a leader in intelligent workload management, through WorkloadIQTM, helps organizations securely deliver and manage computing services across physical, virtual and cloud computing environments. We help customers reduce the cost, complexity, and risk associated with their IT systems through our solutions for identity and security, systems management, collaboration and Linux-based operating platforms. With our infrastructure software and ecosystem of partnerships, Novell integrates mixed IT environments, allowing people and technology to work as one. For more information, visit www.novell.com.

Copyright © 2011 Novell, Inc.  All rights reserved.  NetWare, Novell, the Novell Logo, the N Logo, and SUSE are registered trademarks and WorkloadIQ is a trademark of Novell, Inc. in the United States and other countries. All third party trademarks are the property of their respective owners.

Press Contact:	Investor Relations Contact:
Ian Bruce	Robert Kain
Novell, Inc.	Novell, Inc.
Phone: 781-464-8034	Phone: 800-317-3195
E-Mail: ibruce@novell.com	E-Mail: rkain@novell.com

Page 4 of 10
Novell, Inc.
Consolidated Unaudited Condensed Statements of Operations
(In thousands, except per share data)
	Fiscal Quarter Ended
	Jan 31, 2011			Jan 31, 2010
Net revenue:
Software licenses	$	20,387		$	21,193
Maintenance and subscriptions		150,393			158,951
Services (1)		19,934			22,222
Total net revenue		190,714			202,366
Cost of revenue:
Software licenses		1,520			1,688
Maintenance and subscriptions		20,819			22,572
Services		19,210			19,458
Total cost of revenue		41,549			43,718
Gross profit		149,165			158,648
Operating expenses:
Sales and marketing		67,256			68,916
Product development		38,365			39,702
General and administrative		20,818			25,827
Other operating expenses (2)		11,173			2,774
Total operating expenses		137,612			137,219
Income from operations		11,553			21,429
Operating margin %		6.1	%		10.6	%
Other income, net:
Interest income, net		1,964			2,899
Other income, net		1,992			3,767
Total other income, net		3,956			6,666
Income before taxes		15,509			28,095
Income tax expense		33,451			7,906
Net (loss) income	$	(17,942	)	$	20,189
(Loss) income per share	$	(0.05	)	$	0.06
Weighted average shares		352,001			349,144
(1) Services includes professional services, technical support and training services.
(2) See Page 7 of 10 for a detail of other operating expenses.

Page 5 of 10
Novell, Inc.
Consolidated Unaudited Condensed Balance Sheets
(In thousands)
	Jan 31, 2011		Oct 31, 2010
Assets
Current assets:
Cash and cash equivalents	$	981,426	$	685,594
Short-term investments		150,009		441,096
Receivables, net		89,465		171,607
Prepaid expenses		15,280		16,233
Current deferred income taxes		36,137		49,169
Other current assets		21,126		33,725
Total current assets		1,293,443		1,397,424
Property, plant and equipment, net		151,378		156,033
Goodwill		353,818		353,415
Intangible assets, net		26,988		28,746
Deferred income taxes		227,363		243,583
Other assets		48,013		46,797
Total assets	$	2,101,003	$	2,225,998
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	30,102	$	26,785
Accrued compensation		49,319		83,181
Other accrued liabilities		66,412		86,223
Deferred revenue		448,744		487,590
Total current liabilities		594,577		683,779
Deferred income taxes		7,622		7,622
Other long-term liabilities		35,997		35,655
Long-term deferred revenue		144,065		163,394
Total liabilities		782,261		890,450
Stockholders' equity		1,318,742		1,335,548
Total liabilities and stockholders' equity	$	2,101,003	$	2,225,998

Page 6 of 10
Novell, Inc.
Consolidated Unaudited Condensed Statements of Cash Flows
(In thousands)
	Fiscal Quarter Ended
	Jan 31, 2011			Jan 31, 2010
Cash flows from operating activities
Net (loss) income	$	(17,942	)	$	20,189
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Stock-based compensation expense		6,060			6,450
Depreciation and amortization		7,347			7,437
Change in accounts receivable allowances		46			(1,209	)
Gain on sale of previously impaired investments		-			(5,228	)
Deferred income taxes		29,341			4,496
Changes in assets and liabilities		(15,685	)		(26,939	)
Net cash provided by operating activities		9,167			5,196
Cash flows from investing activities
Purchases of property, plant and equipment		(889	)		(8,128	)
Short-term investment activity		284,703			11,998
Long-term investment activity		-			7,303
Cash proceeds from sale of discontinued operations		-			243
Other		(738	)		1,142
Net cash provided by investing activities		283,076			12,558
Cash flows from financing activities
Issuance of common stock		1,366			832
Excess tax effects from stock-based compensation		181			1
Net cash provided by financing activities		1,547			833
Effect of exchange rate changes on cash		2,042			(3,193	)
Increase in cash and cash equivalents		295,832			15,394
Cash and cash equivalents - beginning of period		685,594			591,656
Cash and cash equivalents - end of period	$	981,426		$	607,050
Revisions were made to prior period amounts in order to conform to the current period's presentation.

Page 7 of 10
Novell, Inc.
Unaudited Non-GAAP Adjusted Income From Operations
(In thousands)
	Fiscal Quarter Ended
	Jan 31, 2011			Jan 31, 2010
GAAP income from operations	$	11,553		$	21,429
GAAP operating margin %		6.1	%		10.6	%
Adjustments:
Stock-based compensation expense:
Cost of revenue		692			559
Sales and marketing		1,891			1,840
Product development		1,735			2,064
General and administrative		1,742			1,987
Sub-total		6,060			6,450
Acquisition-related intangible asset amortization:
Cost of revenue		1,129			1,090
Sales and marketing		629			1,008
Sub-total		1,758			2,098
Other operating expenses (income):
Restructuring expense		-			2,774
Strategic alternatives review expense		10,478			-
Litigation related activity		695			-
Sub-total		11,173			2,774
Total operating adjustments		18,991			11,322
Non-GAAP income from operations	$	30,544		$	32,751
Non-GAAP operating margin %		16.0	%		16.2	%
Novell, Inc.
Unaudited Non-GAAP Adjusted Net Income
(In thousands, except per share data)
	Fiscal Quarter Ended
	Jan 31, 2011			Jan 31, 2010
GAAP net (loss) income	$	(17,942	)	$	20,189
Operating adjustments (detailed above)		18,991			11,322
Non-operating expenses (income) adjustments:
Gain on sale of previously impaired investments		-			(5,228	)
Sub-total		-			(5,228	)
Total pre-tax adjustments		18,991			6,094
Income tax adjustments		25,124			(1,475	)
Total net adjustments		44,115			4,619
Non-GAAP net income	$	26,173		$	24,808
GAAP net (loss) income per share	$	(0.05	)	$	0.06
Total adjustments detailed above		0.12			0.01
Non-GAAP net income per share	$	0.07		$	0.07
GAAP weighted average shares		352,001			349,144
Change from basic to diluted weighted average shares		4,326			-
Non-GAAP weighted average shares		356,327			349,144

Page 8 of 10
Novell, Inc.
Consolidated Unaudited Condensed Segment Results
(in thousands)
	Fiscal Quarter Ended January 31, 2011
	Security,
	Management and						Collaboration				Common
	Operating Platforms			%			Solutions		%		Unallocated			Total		%
Net revenue:
Software licenses	$	12,692			10.5		$	7,695		10.9	$	-		$	20,387		10.7
Maintenance and subscriptions		93,323			77.5			57,070		81.1		-			150,393		78.9
Services		14,357			11.9			5,577		7.9		-			19,934		10.5
Total net revenue		120,372			100.0			70,342		100.0		-			190,714		100.0
Cost of revenue:
Software licenses		1,145			1.0			240		0.3		135			1,520		0.8
Maintenance and subscriptions		13,381			11.1			6,290		8.9		1,148			20,819		10.9
Services		13,684			11.4			4,988		7.1		538			19,210		10.1
Total cost of revenue		28,210			23.4			11,518		16.4		1,821			41,549		21.8
Gross profit		92,162			76.6			58,824		83.6		(1,821	)		149,165		78.2
Operating expenses:
Sales and marketing		51,681			42.9			13,055		18.6		2,520			67,256		35.3
Product development		28,615			23.8			8,015		11.4		1,735			38,365		20.1
General and administrative		12,275			10.2			6,801		9.7		1,742			20,818		10.9
Other operating expenses		-			-			-		-		11,173			11,173		5.9
Total operating expenses		92,571			76.9			27,871		39.6		17,170			137,612		72.2
Income (loss) from operations	$	(409	)		(0.3	)	$	30,953		44.0	$	(18,991	)	$	11,553		6.1

	Fiscal Quarter Ended October 31, 2010
	Security,
	Management and				Collaboration				Common
	Operating Platforms		%		Solutions		%		Unallocated			Total		%
Net revenue:
Software licenses	$	18,915		14.7	$	12,341		15.8	$	-		$	31,256		15.1
Maintenance and subscriptions		93,360		72.8		59,917		76.6		-			153,277		74.2
Services		16,044		12.5		5,934		7.6		-			21,978		10.6
Total net revenue		128,319		100.0		78,192		100.0		-			206,511		100.0
Cost of revenue:
Software licenses		1,938		1.5		408		0.5		192			2,538		1.2
Maintenance and subscriptions		14,546		11.3		6,822		8.7		1,149			22,517		10.9
Services		14,627		11.4		4,722		6.0		664			20,013		9.7
Total cost of revenue		31,111		24.2		11,952		15.3		2,005			45,068		21.8
Gross profit		97,208		75.8		66,240		84.7		(2,005	)		161,443		78.2
Operating expenses:
Sales and marketing		52,139		40.6		12,687		16.2		3,015			67,841		32.9
Product development		31,239		24.3		8,328		10.7		2,151			41,718		20.2
General and administrative		13,419		10.5		7,413		9.5		2,820			23,652		11.5
Other operating expenses		-		-		-		-		6,225			6,225		3.0
Total operating expenses		96,797		75.4		28,428		36.4		14,211			139,436		67.5
Income (loss) from operations	$	411		0.3	$	37,812		48.4	$	(16,216	)	$	22,007		10.7

	Fiscal Quarter Ended January 31, 2010
	Security,
	Management and						Collaboration				Common
	Operating Platforms			%			Solutions		%		Unallocated			Total		%
Net revenue:
Software licenses	$	13,460			10.8		$	7,733		10.0	$	-		$	21,193		10.5
Maintenance and subscriptions		95,205			76.4			63,746		82.0		-			158,951		78.5
Services		15,989			12.8			6,233		8.0		-			22,222		11.0
Total net revenue		124,654			100.0			77,712		100.0		-			202,366		100.0
Cost of revenue:
Software licenses		1,334			1.1			227		0.3		127			1,688		0.8
Maintenance and subscriptions		14,372			11.5			7,088		9.1		1,112			22,572		11.2
Services		14,122			11.3			4,926		6.3		410			19,458		9.6
Total cost of revenue		29,828			23.9			12,241		15.8		1,649			43,718		21.6
Gross profit		94,826			76.1			65,471		84.2		(1,649	)		158,648		78.4
Operating expenses:
Sales and marketing		53,564			43.0			12,504		16.1		2,848			68,916		34.1
Product development		29,915			24.0			7,723		9.9		2,064			39,702		19.6
General and administrative		15,272			12.3			8,568		11.0		1,987			25,827		12.8
Other operating expenses		-			-			-		-		2,774			2,774		1.4
Total operating expenses		98,751			79.2			28,795		37.1		9,673			137,219		67.8
Income (loss) from operations	$	(3,925	)		(3.1	)	$	36,676		47.2	$	(11,322	)	$	21,429		10.6

Page 9 of 10
Novell, Inc.
Unaudited Trended Segment Revenue by Software Licenses and Maintenance and Services
(In thousands)
									Fiscal Year								Change from
	Q1 2010		%		Q4 2010		%		2010		%		Q1 2011		%		Q4 2010 to Q1 2011					Q1 2010 to Q1 2011
Security, management and operating platforms
Open platform solutions
Linux platform products
Software licenses	$	-		-	$	-		-	$	-		-	$	-		-	$	-		-		$	-		-
Maintenance and subscriptions		37,473		18.5		36,256		17.6		144,411		17.8		37,807		19.8		1,551		4.3			334		0.9
		37,473		18.5		36,256		17.6		144,411		17.8		37,807		19.8		1,551		4.3			334		0.9
Other open platform products
Software licenses		21		0.0		70		0.0		109		0.0		35		0.0		(35	)	(50.0	)		14		66.7
Maintenance and subscriptions		1,732		0.9		2,505		1.2		8,088		1.0		1,783		0.9		(722	)	(28.8	)		51		2.9
		1,753		0.9		2,575		1.2		8,197		1.0		1,818		1.0		(757	)	(29.4	)		65		3.7
Total open platform solutions		39,226		19.4		38,831		18.8		152,608		18.8		39,625		20.8		794		2.0			399		1.0
Identity and security management
Identity, access and compliance management
Software licenses		7,132		3.5		10,912		5.3		34,508		4.3		5,715		3.0		(5,197	)	(47.6	)		(1,417	)	(19.9	)
Maintenance and subscriptions		22,357		11.0		21,856		10.6		88,637		10.9		22,275		11.7		419		1.9			(82	)	(0.4	)
		29,489		14.6		32,768		15.9		123,145		15.2		27,990		14.7		(4,778	)	(14.6	)		(1,499	)	(5.1	)
Other identity and security management
Software licenses		177		0.1		393		0.2		1,416		0.2		137		0.1		(256	)	(65.1	)		(40	)	(22.6	)
Maintenance and subscriptions		1,323		0.7		1,072		0.5		4,926		0.6		1,077		0.6		5		0.5			(246	)	(18.6	)
		1,500		0.7		1,465		0.7		6,342		0.8		1,214		0.6		(251	)	(17.1	)		(286	)	(19.1	)
Total identity and security management		30,989		15.3		34,233		16.6		129,487		15.9		29,204		15.3		(5,029	)	(14.7	)		(1,785	)	(5.8	)
Systems and resource management
Software licenses		6,130		3.0		7,540		3.7		29,549		3.6		6,805		3.6		(735	)	(9.7	)		675		11.0
Maintenance and subscriptions		32,320		16.0		31,671		15.3		126,502		15.6		30,381		15.9		(1,290	)	(4.1	)		(1,939	)	(6.0	)
Total systems and resource management		38,450		19.0		39,211		19.0		156,051		19.2		37,186		19.5		(2,025	)	(5.2	)		(1,264	)	(3.3	)
Total security, management and operating platforms		108,665		53.7		112,275		54.4		438,146		54.0		106,015		55.6		(6,260	)	(5.6	)		(2,650	)	(2.4	)
Collaboration solutions
OES and NetWare-related
Software licenses		4,113		2.0		6,128		3.0		20,831		2.6		3,223		1.7		(2,905	)	(47.4	)		(890	)	(21.6	)
Maintenance and subscriptions		37,582		18.6		35,478		17.2		144,794		17.8		33,605		17.6		(1,873	)	(5.3	)		(3,977	)	(10.6	)
		41,695		20.6		41,606		20.1		165,625		20.4		36,828		19.3		(4,778	)	(11.5	)		(4,867	)	(11.7	)
Collaboration
Software licenses		1,702		0.8		3,271		1.6		9,555		1.2		1,842		1.0		(1,429	)	(43.7	)		140		8.2
Maintenance and subscriptions		19,826		9.8		18,867		9.1		77,282		9.5		18,255		9.6		(612	)	(3.2	)		(1,571	)	(7.9	)
		21,528		10.6		22,138		10.7		86,837		10.7		20,097		10.5		(2,041	)	(9.2	)		(1,431	)	(6.6	)
Other collaboration solutions
Software licenses		1,918		0.9		2,942		1.4		9,140		1.1		2,630		1.4		(312	)	(10.6	)		712		37.1
Maintenance and subscriptions		6,338		3.1		5,572		2.7		23,902		2.9		5,210		2.7		(362	)	(6.5	)		(1,128	)	(17.8	)
		8,256		4.1		8,514		4.1		33,042		4.1		7,840		4.1		(674	)	(7.9	)		(416	)	(5.0	)
Total collaboration solutions		71,479		35.3		72,258		35.0		285,504		35.2		64,765		34.0		(7,493	)	(10.4	)		(6,714	)	(9.4	)
Total software licenses, maintenance and subscriptions
Software licenses		21,193		10.5		31,256		15.1		105,108		12.9		20,387		10.7		(10,869	)	(34.8	)		(806	)	(3.8	)
Maintenance and subscriptions		158,951		78.5		153,277		74.2		618,542		76.2		150,393		78.9		(2,884	)	(1.9	)		(8,558	)	(5.4	)
Total product revenue		180,144		89.0		184,533		89.4		723,650		89.1		170,780		89.5		(13,753	)	(7.5	)		(9,364	)	(5.2	)
Services		22,222		11.0		21,978		10.6		88,221		10.9		19,934		10.5		(2,044	)	(9.3	)		(2,288	)	(10.3	)
Total net revenue	$	202,366		100.0	$	206,511		100.0	$	811,871		100.0	$	190,714		100.0	$	(15,797	)	(7.6	)	$	(11,652	)	(5.8	)

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Novell, Inc.
Major IT Software and Solutions Included Within Reported Line Items
Security, Management and Operating Platforms
	Open Platform Solutions
		Linux Platform Products
			> SUSE LINUX Enterprise Server
			> SUSE LINUX Enterprise Desktop
		Other Open Platform Products
			> SUSE Engineering
	Identity and Security Management
		Identity, Access and Compliance Management
			> Identity Manager
			> SecureLogin
			> Access Manager
			> Sentinel
		Other Identity and Security Management
			> eDirectory
	Systems and Resource Management
		> ZENworks Suite
		> ZENworks Patch Management
		> ZENworks Asset Management
		> ZENworks Linux Management
		> ZENworks Configuration Management
		> PlateSpin
		> Novell Operations Center
Collaboration Solutions
		Open Enterprise Server and NetWare-Related
			> Open Enterprise Server (OES)
			> NetWare
			> Cluster Services
		Collaboration
			> GroupWise
			> Vibe
		Other Collaboration Solutions
			> BorderManager
Services
		> Professional Services
		> Technical Support Services
		> Training Services