Novell Divests Management Consulting Subsidiary

Novell Divests Management Consulting Subsidiary

Novell, Inc. (NASDAQ: NOVL) today announced that it has sold its shares in Celerant Consulting, Novell’s majority-owned management consulting subsidiary, to a group composed of Celerant management and Caledonia Investments, a UK-quoted investment trust, for $77 million. The sale fulfills Novell’s previously announced plan to explore strategic alternatives for Celerant.

With the sale of its interest in Celerant, Novell will focus on its core businesses of Linux and open source; systems, security and identity management; and workgroup computing. The Celerant divestiture has no impact on Novell’s existing IT consulting business. Novell will continue to offer IT consulting services around these core businesses.

“The sale of Celerant allows Novell to concentrate fully on our core technology growth businesses.” said Jack Messman, chairman and CEO of Novell. “Celerant has great operations management consulting expertise and top notch people. We wish Celerant and all of its employees great success.”

Novell acquired Celerant as part of its purchase of Cambridge Technology Partners in 2001. There will be no further shareholding or operational relationship between Novell and Celerant going forward. The additional impact of this transaction on Novell’s future financial results will be discussed by Novell management during the second fiscal quarter 2006 earnings call on May 31, 2006. Citigroup Corporate and Investment Banking advised Novell on the transaction.

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