HP, Novell and SCO To Deliver High-Volume UNIX OS With Advanced Network And
Enterprise Services

Base Created for Next-Generation Business-Critical Computing

NEW YORK, New York - September 20, 1995 - Hewlett-Packard Company, Novell,
Inc., and The Santa Cruz Operation, Inc. (SCO) today announced business
relationships designed to deliver a high-volume UNIX operating system with
NetWare and UNIX enterprise services. The three companies will work
together  each focusing on its core strengths  to release a series of
merged UNIX products that will provide customers with a clear,
evolutionary path to 64-bit networked computing on the HP/Intel
architecture. As a result, customers will be able to take advantage of a
high-volume UNIX operating system that runs on standard hardware platforms
and integrates their current desktop, workgroup, and enterprise networked
environments  protecting their investments while ensuring access to new
technologies.

HP, Novell and SCO recognize that the next wave of computing will require
the integrated capabilities of a robust enterprise operating system and
rich network services, available through high-volume channels. These new
relationships will accomplish the following:

Novell will provide its market-leading NetWare services that are essential
for integrating high-end enterprise environments with workgroups and PCS;
SCO has purchased the UnixWare business from Novell and will consolidate
its SCO OpenServer system and Novell's UnixWare into a merged high-volume
Intel-based UNIX operating system that provides interfaces in common with
HP-UX. SCO will leverage its proven ability to bring high-volume UNIX to
market;

Novell will work with HP to produce a high-performance implementation of
its NetWare Directory Services (NDS) and File/Print Services for HP-UX,
and integrate NDS with DCE; and HP will lead and drive the 64-bit UNIX
operating system for the HP/Intel architecture, resulting in the
combination of the 64-bit HP-UX and SCO Intel-based operating systems.

"NetWare, UnixWare and SCO OpenServer are all robust offerings on
high-volume Intel-based platforms," said David L. House, senior vice
president of Intel's Enterprise Server Group. "The combination of these
capabilities, along with HP's expertise in the 64-bit arena, should be a
welcome solution for UNIX ISVs and users."

As a result of these relationships, customers will gain the following
benefits:

Better access to corporate data from the integration of NetWare
services and UNIX;

Wider choice of applications and development tools from existing
HP-UX, SCO OpenServer and UnixWare solutions; and

Faster development of new applications from the common interfaces
that enable developers to provide new functionalities faster.

"By combining HP's and Novell's respective strengths in enterprise and
networked computing and SCO's proven volume distribution channel for its
UNIX operating system, we will continue to deliver effective commonality
in UNIX," said Willem P. Roelandts, HP senior vice president and general
manager, Computer Systems Organization. "By forging these relationships,
we are providing a common environment that meets customer requirements for
a networked computing architecture spanning the virtual data center from
desktop to enterprise business-critical servers."

"Working with HP and SCO to focus on our respective strengths and
consolidate our overlapping efforts creates unparalleled new opportunities
for our customers and partners. By standardizing on Novell's networking
services, our customers benefit from having a greater level of consistency
on their networks, reducing their cost of ownership and simplifying their
ability to deploy cost-effective application servers. Our partners benefit
from a new level of consistency, allowing them to focus on providing
value-added capabilities never considered before. HP will take the lead in
UNIX technology; Novell will take the leadership role in network services;
and SCO will lead in creating technology required for volume channels. We
expect this relationship to result in an unprecedented selection of
network services, applications, development tools, and channel support on
the Intel-based UNIX platform," said Bob Frankenberg, Novell chairman and
CEO.

Alok Mohan, SCO president and CEO said, "UNIX is the leading business-
critical operating system server for large and small businesses today, and
this relationship provides SCO OpenServer and UnixWare customers with a
reliable and innovative platform for future growth. HP's technology
leadership will ensure the continued success of UNIX. Organizations can
integrate their network services and enterprise systems while protecting
their substantial investments in hardware and application development."

According to Richard French, Oracle's vice president, Intel UNIX Products
Division, "This relationship will create a standard, high- volume UNIX
platform for business-critical computing that is very attractive to Oracle
and should be to all application developers. Oracle, and other software
vendors, will be able to deliver products to customers faster, reduce
costly porting and tuning efforts, while spending more time optimizing
software functionality and adding specific added value for customers.
Additionally, this relationship will reinforce the recently announced
initiative by all UNIX suppliers for a 64-bit UNIX."

Hewlett Packard Company is a leading global manufacturer of computing,
communications and measurement products and services recognized for
excellence in quality and support. Hewlett-Packard has 99,900 employees
and had revenue of $25 billion in its 1994 fiscal year.

Novell (NASDAQ: NOVL) is the world's leading network software provider.
Novell software provides the infrastructure for a networked world,
enabling our customers to connect with other people and the information
they need, anytime and anyplace. Novell partners with other technology and
market leaders to help customers make networks a part of their everyday
lives.

SCO (NASDAQ:SCOC) is the world's leader for UNIX System servers and
multiuser hosts. SCO Business Critical Servers run the critical,
day-to-day operations of large branch organizations in retail, finance,
and government, as well as corporate departments and small to medium-
sized businesses of every kind. SCO sells and supports its products
through a worldwide network of distributors, resellers, systems
integrators, and OEMs.
 
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